Being Your Own Property Manager

Real Estate Investment Mistake 6
Being Your Own Property Manager

This is intuitively sensible, which is why so many intelligent people fall into this trap. Why not save the cost of a property manager and increase your net cash flow? Who will pay as much attention as you will to your own property? Who will care as much? Yes, but consider this. Property management is a low margin, many aspect enterprise. Experienced successful property managers will tell you a property management company does not make sense economically until it has a customer base of a hundred properties or more. Then marketing, clout with subcontractors like plumbers, round the clock staff to be attentive to tenant concerns or emergencies, and so on makes sense proportionately. You would almost always do better to put the time you may be wasting as your own property manager into your own business or career. It will pay better. But the more important reason should be obvious. By managing your own property, aren't you handcuffing yourself to the area where you live? That just doesn't make sense if your goal is to own real estate in the areas most likely to appreciate the most over the coming years. Don't let the tail wag the dog. We share the secrets in our 7 Steps to Success elsewhere in this website, and how we can protect your interest in our 6 Ways to Protect Your Interests.

< Don't Follow The Crowd Not Considering Your Exit Strategy >

---