Are all investors the same? Are all property managers the same?
Obviously, no, but it’s a bit ironic how property managers and investors often view each other as such.
General Consensus Towards Property Managers
Perhaps you’ve had, or are having a negative experience with a property manager. Or, they just provide the bare minimum and simply “get the job done”. I mean, let’s be real. Most investors aren’t walking around at dinner parties exclaiming how fantastic their managers are. In fact, it’s likely the opposite.
Most investors like to lump property managers into a single category; a one fits all mentality. Typically, it can be agreed that property managers only care about getting paid, and don’t share the same connection and emotion tied to the investments that the owner does. It makes sense really. Shove in any tenant to get paid and be on their way to the next. The good ol’ “next” mentality.
In dealing with countless property management companies over the years, and hearing countless stories from investors, we’ve concluded we can’t blame you for your blanket attitude towards property managers. Time after time again, property owners like yourself have gotten the short end of the stick when it comes to managing their property.
So trust us when we tell you -we get it-.
Here’s the key difference
Likely – your property manager isn’t an investor themselves. Not that there’s directly anything wrong with that, but it does raise some key points. Someone that hasn’t experienced what you have, not matter the topic, can’t possibly empathize with “what it’s like.” They don’t really have that same emotional grasp you do when a big repair comes up, a tenant leaves a house untidy, or anything of the sort.
And on top of that, it usually doesn’t allow for them to have the same level of general skill in the business without having tackled those issues themselves. Of course, there’s going to be exceptions, but in general someone who has done it themselves is going to get it done for you.
Property managers who haven’t invested in rentals themselves rarely can have the same level of service compared to someone who has. It’s that simple.
Does your property manager simply manage your rentals, or are they there to help you grow a portfolio?
Your property manager should be one that can answer questions other than things related directly to your property. In other words, are they only answering questions about your specific tenant and situation, or can they answer bigger questions like “where would be a location that’s up and coming for my next purchase” or “How can I leverage my current asset(s) to buy more property?” This knowledge, in our opinion, is what separates someone that simply gets the job done from someone that’s actually their to manage you and your portfolio.
How Property Managers view Investors
Ooo, how fun. An insider’s perspective on how you are viewed as an investor, or simply, a property owner.
In the eyes of the average property manager, you’re seen as rich. You have endless money ready to be tapped into whenever your property needs it. I mean, go figure, you own a property other than the one you live in as a primary residence, so of course you’re rich, right?
Well, any seasoned property manager knows this isn’t always the case. In fact, it’s usually the opposite.
Now, we’re talking about readily available cash, not overall wealth. Just simply the ability to pour money into a property when the need arises. And, maybe to your surprise, this is very much so not the case.
Experience over the years has taught us that investors come in all shapes and sizes, and some wouldn’t even call themselves investors. We like to call these “accidental landlords” in that they own rental property now that they never intended. Typically, this is from inheritance of a property or someone who had to suddenly move and decided renting the property was their best financial move. Bottom line, they never intended to become a real estate investor. It just sort of, well, happened.
And in fact, “accidental investors” are much more common than you may think.
And even more common are those who are admittedly greenhorns when it comes to investing and are a sponge to our knowledge, learning by following our lead.
Regardless, here’s our general finding:
Probably 30-40% of our client base usually has some difficulty coming up with cash for larger repairs.
Most real estate pros recommend the 2 year rule. To take cash flow or proceeds from the first 2 years of rental income, and simply put it away for repairs if cash is tight. This way you have a nice base for any major repairs, or even minor repairs that need to be completed.
So, there you have it. Most property managers think landlords are cash heavy, but we know it’s simply not the case.
So what’s the point?
The point is, when there’s a costly repair that comes up, we understand the struggle it can be. That’s why we do our best to get multiple quotes and work with some of the best and most economical vendors in the area to get you the best price possible. It’s important that our staff is understanding that owning rentals is a difficult business, and we’re not tapped into some magical bank account. That’s why our repairs recommendations are the right amount between not enough, and too much. We understand the fine line of making a nice rent ready property and spending too much money that isn’t necessary.
A look inside this type of experience
Anytime you’re taking up a new hobby, experiencing a new endeavor, or trying to become an authority on a certain subject…what do you do?
Research, practice, and remain open minding while acting like a sponge. Taking opinions, suggestions, and advice from experts in their craft is a certain quick way to be well on your way yourself.
That’s certainly in the roots of our team here.
Listening to customer feedback and stories over the years with this mentality has helped create an atmosphere of professionals who’s goal is to create a full in house experience. No one is interested in just simply collecting rent and leasing properties and answering the occasional question.
We’re a one stop shop for everything, ready to offer advice when needed, and help you near or far.