Why You Should Be Hiring Property Management
How are you doing today? Sunny with Synergy Real Estate and Property Management here with you again. Today we’re going over the pros of hiring a property management company.
When managing property for other people, a question that we often get is “why would I hire you? Why wouldn’t I just take care of it myself?”
In my opinion that’s kind of a very small minded question. I don’t mean that with any disrespect. What I mean by “small minded” is that people tend to underestimate to work that goes into property management.
Take a look at multifamily syndicators and podcasters, Jake and Gino. They have this phrase called “I’mma”. Basically, the “I’mma” mentality is ‘I’m gonna do this’ or ‘I’m gonna do that’. I thought that was really appropriate for this section of the blog here.
You Want Our Expertise
Investors can be very successful and will be saving money, which is really great, but as they tend to grow and scale their properties the management can become very difficult and it starts taking away from other things in your life. So one of the biggest pros that I see with having a property manager on board is having the expertise behind you.
For example you may be a mechanic, an engineer, or a doctor and you are considered experts in your respective fields. We will come to you when we need help from people that specialize in your area of knowledge. For instance, if you’re a physician we’re going to come to you in regards to our health and we’ll trust what you’re saying because you’re a specialist in that. Well, for those of us in property management our area of knowledge is real estate.
While property management is something that can be done with minimal education. rAs a new investor you may come across situations where you may need outside resources. In order to get a job done properly it’s best when you have the expertise. Property managers have a better vision of how things go and better processes for how things work. Whereas, somebody with a full time profession whose expertise is elsewhere may not be able to do that. That’s something that you can really rely on with a good property manager.
We Have The Time
Another thing is the obvious time saving tool. A lot of people will realize that they make a decent amount of money per hour and for example, we charge $60 per month on a single family home as a flat rate, if you’re spending more than one hour per month on this property and you’re making more than $60 per hour, then it may benefit you to hire a property management company.
The other way to look at it is you may find yourself having to go out in the evenings, afternoons, or even during work hours to take time to coordinate and find contractors to take care of your property and then that becomes time taken away from your job and time taken away from your family. Those are things that can be really important to you so it may behoove you to have a property manager because they’ll get it taken care of and you can utilize the time that you have in a way that you think would be best for your life.
We Have The Energy
We only have so much energy. You are already going to work and working difficult jobs, having difficult conversations and being in difficult environments, especially with COVID. Now even working from home gets really tiring for a lot of people.
We’re all doing something that’s expending energy and then you have this tenant that calls and complains about another tenant, the trash didn’t get picked up today, the gardener did such-and-such. Now you have to deal with all that and those little things are going to chip away at your energy. It may be worth just a little bit of money to have someone take care of that for you.
It’s just the same thing in, my opinion, as getting a cleaning lady for your home . If you can afford it, it’s definitely a service that I think is important. If you can hire those cleaning people for a pretty discounted price and you can make more than them per hour, then it makes sense for you to actually spend that time working, being productive or being with your family. You could be doing something that’s really important to you versus seeking that time to clean your home. It’s just more efficient.
We Know The Market
We know the Bakersfield, CA market. We are constantly doing deals on various properties: single family, multifamily, and commercial, etc. and in doing all of those and being involved in the market on a full time, day to day basis we’re able to recognize trends that happen. There are things that tell us whether we should buy now, sell now, rent higher now, go for renewals, even to enforce evictions. coming up with these strategies So, getting the inside scoop.
So, for example in Bakersfield, something that a lot of people hadn’t really looked at is multifamily development. We have a lot of multifamily development that was built 10 to 30 years ago and a lot of those units are still being rented and updated. But we really didn’t see a lot of new construction coming online until the past few years. Now you’re starting to see these medium to large sized apartment complexes pop up that are done by very professional corporations and class A style getting market rents, increasing those market rents to levels that we hadn’t previously seen in Bakersfield. It’s really interesting when you’re in the market, what you can see and how we can move forward with all of that information.
I’mma Do The Work For You
Let’s go back to that “I’mma” mentality from Jake and Gino. The “I’mma” mentality is something that’s really good for those small investors. Those people whose thought process went “I bought a house and moved out so I bought another house. Now I’m going to try to rent my first house so I’m going to take care of that.” But as they start to grow they’ll realize that the time, energy, headaches that are taken out from owning each unit and it’s specifically getting bigger and bigger and bigger.
Especially looking at the different types of property that you own; if you own a bunch of C and D property then it could really start eating away at your time. So professional property management allows you to go ahead and enable growth and allows you to focus on your thing. You can move forward in your career to make more money to specialize more and to invest that money. At that point property managers come in and help take that money that you’ve invested and we help you grow your portfolio. To us that’s really important and consider it a good value for a good property manager.
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Thanks for your time.