I don’t know WHAT I would do without having a real estate property manager to take care of my investment properties.
As a professional full-time real estate investor, believe me, my time is better spent taking care of my real estate business – and NOT managing my properties.
= What is your time Worth =
It costs me about $110 per month per property to pay for the peace of mind my real estate property managers give me.
Yea, it cuts into my “profit” – but I can sleep – EVERY night.
I ask my coaching clients ‘what is your time, sanity & energy worth to you?’
Saving $100 just ‘because’ you can do your own PM is not a good use of your time IMO. You are not leveraging your expertise.
Sure, you can probably install a new window screen yourself and save the $50 labour charge…but have you taken into account all the TIME you took to drive to the property – buy the material – install and repair the issue – drive back home?
My time is worth at LEAST $50 per hour.
(if you want to know what your time is worth, divide whatever income you are making or WANT to make by 2000)
At the very least, MOST real estate entrepreneurs have a time value of $25 per hour. I’m basing that on them having another an average of 50k income (with or without a second job).
If you allow that to be true, then in TWO hours you’ve blown through your ‘allowable’ time expense.
= Let It Go & Let Your Real Estate Property Manager Do Their Job =
Is the FROZEN song ‘let it go’ ringin’ in your head ? 🙂
Let’s get real – we both know it takes a helluva lot longer than two hours to do ANY simple job.
I’ve had this discussion with quite a few coaching clients and most of them get the fact that a real estate property manager is a necessary ‘expense’.
But there’s always the stubborn high type-A personalities out there (you know who you are) that want to manage and have their hands in every little piece of the operations.
Again, that is not only a waste of the time you desperately need more of, but you are not leveraging the power of what you COULD be doing WITH that time.
I’m not surprised when a real estate investor comes to me ‘overwhelmed’ and has a back-load of stuff to take care of.
It’s mainly because they don’t understand where their priorities are as the OWNER of a real estate business.
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For instance – my real ‘everyday’ priority is to oversee the management of my real estate business operations and analyze a property or two
That means I check in with my accountant, bookkeeper, real estate property manager, realtor and so on.
But that doesn’t take me ALL day. In fact, it doesn’t even take me ALL WEEK.
Do you know why?
Because part of my freedom comes from having a real estate property manager…
…that takes 80% of my ‘real estate’ tasks away from me…so I only have to concentrate on the 20% that truly makes me money.
My advice?
Get a real estate property manager. Period.
Next time I’m going to share a few things to watch for when hiring and managing your property manager.
You won’t want to miss that one – so make sure you subscribe to the RSS feed to get an automatic notice when I post.