If you’re trying to determine whether you want to hire a Portland property management service or do it yourself, here are two important considerations you can examine to help you save time and hassle and increase overall cash flow with your income properties.
Where The Money Is Made
Without a doubt, every dollar you receive in rent goes to cover expenses, pay down — and ultimately pay off – debt, and contribute to your monthly earnings. Time invested getting the best tenants increases peace of mind and stability of income. We’ll be talking more about that in a bit. And every dollar you save paying someone else for maintenance, repairs, and upgrades all goes in your pocket, right? Each one of those points is true and important. It’s the reason many income property owners decide to manage their properties themselves.
However, you can’t get rich and create financial freedom with one property. It’s the deals you have yet to find, the knowledge you have yet to increase of how to invest in real estate in Portland, the sellers you have still to negotiate with, and the private funding waiting for you to tap that most determine your ultimate cash flow, profit, and wealth. If that’s the case, then it makes sense that the lion’s share of your time, energy and focus should be spent finding those deals, right? An old adage says, “The money is made on the BUY.” So now that you’ve bought an investment property, don’t waste precious personal resources managing it.
Hiring Out Portland Property Management
I recommend that my students and partners do what I do when I have multiple occupied rental properties: hire property management. You can do that by hiring out a professional Portland property management service, or by hiring in an individual or small crew on an employment or contract basis. Which way to go? Depends on you.
You might hire out if you are a bit short on experience or funds, as property management companies take a percentage of rents as they collect on a monthly basis. If you’re comfortable managing people or property or you’re in a stable place financially – with some cash in the bank and a job, perhaps – you may want to hire a person or persons you manage personally and pay on a weekly, bi-weekly, or semi-monthly basis.
One important point to keep in mind is that a Portland property management company operates by trying to maximize its profits.So if you pay for certain types of repair work in addition to management fees, expect the possibility that the company suddenly “finds” a lot of that kind of maintenance or repair work that needs to be done. As in any case of work for hire, watch your P’s and Q’s, inspect what you expect, and be ready to stand firm when recommendations are made that don’t fit your perceptions.
Outside the expense consideration, you need to make sure that whomever you select manages the tenants in line with your philosophies. This is best to examine during your interview process by determining in advance if they already have a management style similar to yours. Before you tell your prospective manager how you’d like it done, ask what their customary policies and procedures are or what they recommend for issues like:
- Late rent payment
- Bounced check
- Parking violations
- In-unit repairs and work orders
- Quiet-hours infractions
- Drug & alcohol abuse
- Property damage (by tenant)
This will give you an idea of how they might value and handle the people occupying your property. Again, you will want to confirm with spot checks or third party verification that they are handling your property and tenants in practice as they promised during the hiring process. You can get referrals and recommendations for quality Portland property management companies from other investors by joining a good real estate investors group.
Make no mistake, whether you do it yourself, hire an employee, or outsource, there will be a time of growth and development of skills and experience appropriate to your scenario. You will have great successes and quite likely, frustrating challenges. But if you take advantage of the opportunity to master Portland property management, you have a great chance of building an empire that will bring you the ease of living and quality of lifestyle you desire.
Portland Property Management
How to Invest in Real Estate Portland
Portland, OR 97225