When Should I have Property manager?

[Pradeep100]

Hi,
I am looking for advice as to when should you have your portfolio looked after by a Property Manager. I am starting with a townhouse (first property) and looking for advice on whether I should have an Property manager immediately or at a later stage.
Thanks

Pradeep

 

[EdRenkema]

QUOTE (Pradeep100 @ Jul 17 2009, 09:13 PM) Hi,
I am looking for advice as to when should you have your portfolio looked after by a Property Manager. I am starting with a townhouse (first property) and looking for advice on whether I should have an Property manager immediately or at a later stage.
Thanks

Pradeep


Its part of the learning curve to do it yourself, a bit scary at first but necessary, do it once you know how you would like it done and can well appreciate the PM`s job. Or alternatively you can hire a PM and actually learn from them, try to find one who follows the REIN system.

 

[Thomas Beyer]

QUOTE (Pradeep100 @ Jul 17 2009, 09:13 PM) ...
I am looking for advice as to when should you have your portfolio looked after by a Property Manager. I am starting with a townhouse (first property) and looking for advice on whether I should have an Property manager immediately or at a later stage.
There are only 3 reasons to do PM yourself:

a) to learn it (i.e. the first 2 or 3 perhaps)
b) you have nothing better to do with your time and you love it, or
c) you can grow the PM business large enough to be profitable

Otherwise, hire someone else that is impeccably managing your portfolio !

Set you $/h bar reasonably high and you will realize that you make a better ROI finding more properties or more investor partners than spending time managing your own assets !

 

[amurthy]

Hi Pradeep,
You may find something about what the involvement of the PM may/ ought to (ideally) bring to the table.
Some of it is idealistic, so temper it to your particular situation.

Cheers,
/am

 

[invst4profit]

Obviously from the previous posts there are two approaches to the subject.
Your choice depends on your goals. If your goal is to acquire as many properties as possible in the shortest amount of time then your direction is toward strictly investing and not being a Landlord. Because there are many substandard property management companies out there, and you will be required to manage your manager, you will be at a disadvantage in having no personal experience. Cross your fingers and hope to find a good one through references.

On the other hand if you are starting off slow, testing the water on the entire adventure, you will have plenty of time to manage your own property/properties for a few years. It will not take very much time initially and will be invaluable knowledge to you in managing your future property manager.
It boils down to how much knowledge of your business you personally want to have and what type of business you wish to have.

Your choice and timing will depend on your initial business plan. Do you wish to start out as a landlord and transition into strictly investing or are you only interested in being a arm chair investor from day one.

 

[Nir]

QUOTE (thomasbeyer2000 @ Jul 17 2009, 09:29 PM) you will realize that you make a better ROI finding more properties or more investor partners than spending time managing your own assets !
I guess you meant `than managing your own properties (not assets)` , as correct me if I am wrong Thomas, even you still manage your assets(?)
Actually I learned this important distinction from you. Regards, Neil

 

[Thomas Beyer]

QUOTE (investmart @ Jul 18 2009, 09:07 AM) I guess you meant `than managing your own properties (not assets)` , as correct me if I am wrong Thomas, even you still manage your assets(?)
Actually I learned this important distinction from you. Regards, Neil
assets = properties ?

yes, we manage our own now .. in category c) i.e. this is a for-profit venture although it did not reach that level until we had several hundred units under in-house management ! Up to 3 or 4 years ago all my properties were outsourced to 3rd parties (300 or so units in 6 properties aka assets)

From the start I decided "I do not have time to manage assets once I own them" .. as finding them, getting the mortgage and finding investors and running a SW/consulting firm was more than a full-time job in the years 1998 to 2004

 

[Pradeep100]

Thanks for the replies and suggestions. I think it would be better for me to have a property manager as Greg mentioned "What is your goal". I would like to be only an investor and buy as much properties as possible.
Thomas, I also agree with you. It becomes too much with my full time job and also having to spend time with family

Thanks once again.

Pradeep

 

[ShannonMurree]

QUOTE (Pradeep100 @ Jul 18 2009, 08:57 PM) Thanks for the replies and suggestions. I think it would be better for me to have a property manager as Greg mentioned "What is your goal". I would like to be only an investor and buy as much properties as possible.
Thomas, I also agree with you. It becomes too much with my full time job and also having to spend time with family

Thanks once again.

Pradeep


Though I would strongly suggest in educating yourself in the Law (to ensure your Management company is doing things ethically, etc). Also, get referrals for a good management company.

 

[invst4profit]

Shannon makes a valid point. Any individual interested in getting into real estate investments in the residential market should, initially, place as much importance on learning there Provincial Tenancy Act as they do educating themselves on investing.
Not knowing the act is like learning how to drive a car without bothering to learn the rules of the road.

Your potential to crash and burn is very high.