The manager is a critical part of the success for your investment property.
Having a good manager can mean the difference between your spending 5 hours a month overseeing a property if you have a good manager, or 40 hours a week if you have an inept manager.
For example, I owned an income property managed by the same gentleman for approximately 10 years.
He had so much pride in the property - he knew all the tenants very well, he kept strict control of the property, and really created a desirable living environment for all of the tenants.
He was always willing to help to ensure the property was kept spotless and really motivated the tenants well to help him.
Unfortunately, this manager had to move out of state because of family issues, and within 30 days of his leaving there was trash all over the property, tenants became unruly, move-outs increased, and delinquencies went up - all because the tenants were not happy with the new manager.
All of this occurred within 30 days of a change in management.
When that happened to me, I realized that for the property to succeed you must have a good, strong manager in place.
(Even if you have to pay a little bit more money, it's definitely worth it!) The manager is your single best investment in your property.
To hire the best manager, find the best person you can afford and spend a lot of time screening that new person before hiring him or her.
Some of the skills that I look for when hiring a manager are: being a self-starter, accountable, responsible, frugal, and understanding the bottom line.
It is also good to hire a manager who is very handy and can do light repairs because that can save you quite a bit of money.
Instead of your having to bring in a professional, they can change door locks and handle small repairs.
You also need somebody who is very organized, who will look at things very carefully, and someone who is computer literate.
With today's technology, you can be anywhere in the world and own property, but the internet will be integral.
The manager must be computer literate or at least willing to learn how to use a computer.
The internet is a convenient way for you to stay in touch with each other.
I use email, yahoo messenger, gotompc.
com (allows me to log onto the onsite computer) and internet cameras (allows me to view the office and property via the internet) to manage my investment properties from afar.
All of these monitoring tools are free or very low cost.
We provide that manager with financial compensation by both salary plus bonuses.
We try to make sure and align the goals of the manager with our company/property goals to hit the bottom line, because the bottom line is really what matters.
If you have a good manager, you are able to oversee many properties instead of having to focus on just one property thus creating more overall income/equity buildup.
I've personally seen that the manager is the most important person for success in this business.
Having a bad manager can really make your life miserable because it takes a so much time to get things done.
On the other hand, if you have a good manager you will minimize expenses, maximize profit, and ensure that the property is a great living environment for your residents.
Your investment property will also be worth much more because it will be a desirable place to live and your residents will have pride of residency.
Having a good manager can mean the difference between your spending 5 hours a month overseeing a property if you have a good manager, or 40 hours a week if you have an inept manager.
For example, I owned an income property managed by the same gentleman for approximately 10 years.
He had so much pride in the property - he knew all the tenants very well, he kept strict control of the property, and really created a desirable living environment for all of the tenants.
He was always willing to help to ensure the property was kept spotless and really motivated the tenants well to help him.
Unfortunately, this manager had to move out of state because of family issues, and within 30 days of his leaving there was trash all over the property, tenants became unruly, move-outs increased, and delinquencies went up - all because the tenants were not happy with the new manager.
All of this occurred within 30 days of a change in management.
When that happened to me, I realized that for the property to succeed you must have a good, strong manager in place.
(Even if you have to pay a little bit more money, it's definitely worth it!) The manager is your single best investment in your property.
To hire the best manager, find the best person you can afford and spend a lot of time screening that new person before hiring him or her.
Some of the skills that I look for when hiring a manager are: being a self-starter, accountable, responsible, frugal, and understanding the bottom line.
It is also good to hire a manager who is very handy and can do light repairs because that can save you quite a bit of money.
Instead of your having to bring in a professional, they can change door locks and handle small repairs.
You also need somebody who is very organized, who will look at things very carefully, and someone who is computer literate.
With today's technology, you can be anywhere in the world and own property, but the internet will be integral.
The manager must be computer literate or at least willing to learn how to use a computer.
The internet is a convenient way for you to stay in touch with each other.
I use email, yahoo messenger, gotompc.
com (allows me to log onto the onsite computer) and internet cameras (allows me to view the office and property via the internet) to manage my investment properties from afar.
All of these monitoring tools are free or very low cost.
We provide that manager with financial compensation by both salary plus bonuses.
We try to make sure and align the goals of the manager with our company/property goals to hit the bottom line, because the bottom line is really what matters.
If you have a good manager, you are able to oversee many properties instead of having to focus on just one property thus creating more overall income/equity buildup.
I've personally seen that the manager is the most important person for success in this business.
Having a bad manager can really make your life miserable because it takes a so much time to get things done.
On the other hand, if you have a good manager you will minimize expenses, maximize profit, and ensure that the property is a great living environment for your residents.
Your investment property will also be worth much more because it will be a desirable place to live and your residents will have pride of residency.