Why Portland Real Estate Investors Don’t Hire Property Managers
Let’s talk about why Portland real estate investors, whether first time, or seasoned, don’t hire property managers:
All property managers know the benefits of assisting Portland real estate investors with their goals, so we ask ourselves, why don’t they hire a company to do just that? We know the list of why Portland Real Estate investors should hire property managers is quite long, and anyone looking to add a steady stream of income by using real estate really should have a professional assist in that endeavor.
Reason 1: Property Managers Cost too much money!
Are property managers free? No. Are great ones cheap? Nope! The industry standard is about 8% – 10% of the monthly rent, and if your property is vacant, the leasing fee is typically 50% – 100% of month’s rent. So why should an investor incur those additional expenses? It’s actually quite simple, most properties rent 10X faster with a professional company. Their resources and connections with the top advertising sites will land your property at the top of the list! That could lead to a vacancy filled in days, or even just a few short weeks with their professional help, vs. you doing it on your own as an investor and not really having the time or effort to put into responding into inquiries, showing the property, and making the renting process as efficient and easy for the potential renter as possible. Property Managers are also the first to know about any law changes, which can save you from getting into hot water and costing you thousands in litigation. Especially as the markets continue to be more and more tenant friendly. So, sure, a property manager costs you something, but in the end you should be able to receive higher rents than on your own, much shorter vacancy, and helping you stay clear of any litigation!
Reason 2: Portland Real Estate Investors do not fully understand what a property manager does.
To most, there is a misconception that property managers just collect rent, and let’s be honest, anyone can do that fairly well. The truth about property managers is they play a crucial role in help you accomplish your real estate investment goals, whether it’s making a property more profitable, adding to your portfolio, establishing equity to make that possible, helping maximize your rental income potential, making sure you are fully compliant with all state, federal, and more and more we are cities that are requiring certifications, and licenses to. Aside from helping you accomplish your goals, they also give you the freedom to focus on the things that are much more important to you, such as your family. You don’t want your Saturday family picnic interrupted by a tenant emergency, or having to rush over to the property to show it to a potential tenant. They handle all the tenant relations so that you are free to focus on accomplishing your goals and dreams for you and your family. If more real estate investors understood the value that can add to their life, almost every serious investor would consider finding the right property manager for them!
Reason 3: Once it’s rented, it can be a part time job and in my spare time!
Most Portland real estate investors are incredibly savvy, and smart, and capable. So they think they can manage their rental property in their spare time. And during certain times of the year, that can absolutely be the case. But when the holiday hits, and your furnace goes out, or the pipes freeze in the winter while you are spending time with family during the holidays – it can drastically interrupt your life. Or the seemingly great tenant you placed who was incredibly detailed and on top of everything getting their application in, and provided you with enormous amounts of documentation, could be the tenant that calls and texts you every week with a request, and a follow up, and a need, and doesn’t seem to respect any business hours, and always seems to interrupt dinner, or distracts you so you end up missing the goal your kid scored at their sports game. Having a rental property, successfully is a full time job!
So, while you absolutely may be smart enough to handle your own rental property investments, make sure you are willing and prepared for what it will take to manage it incredibly well and successfully. Are you willing to let it take over your life? Or just as you hire a professional to help you maximize your tax return and deductions, hire someone who can help you accomplish your investment goals with your rental property, freeing up your time to do the things you love while being able to add to your portfolio and prepare for your future, all while not missing out on the present moment!
Visit our Education Center for more tips, tools, and resources!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.