Couldn’t handle it…why I just hired a property manager

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The time has finally come. I finally hired a property manager while I invest in real estate, after 7 years of managing the my rentals myself. Here’s why and what led me to that choice – enjoy! Add me on Snapchat/Instagram: GPStephan

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I ended up buying two houses and a triplex in late 2011 and early 2012. Since then, managing them has been extremely easy. For the most part, it took me 1-2 hours per MONTH of work to manage 5 tenants at the time. Most of this time was spent making sure rent had been paid, cashing rent checks, making sure bills were paid, and just generic accounting. If something broke, I’d just call a contractor to go out and fix it. I also rarely had vacancies..

My rental landlord philosophy was this… I generally don’t raise rent, unless it’s a unique situation or cash flow issue. For instance, on my original 3 properties, I’ve only raised rents when a unit becomes vacant. I’ve had some tenants since 2011 that are paying the SAME rent since back then. Am I leaving money on the table? Sure. But on the upside, I have really, really great tenants that take really good care of the place, treat it like their own, always pay on time, and are all around really awesome people, making it easy for me to manage. They have zero desire to move since they’re paying so much less than they would if they went somewhere else and in return, it’s easy for me. It’s a win win.

But recently the unthinkable happened…a tenant had to move and relocate for work. And now my vacant place needed a little work – just minor fixes, re painting some stuff, etc. And finally, at that point, I thought about it…the time it would take for me to drive an hour each way just to go there, the time it would take to coordinate a walk through, meet and screen tenants, handle payment, etc…just wasn’t worth it. My time was better spent doing just about anything else. And finally, it clicked…I gotta hire a property manager, I just can’t handle it myself.

So I did some research online, found a recommendation…did some negotiating back and forth for a day on prices between that and another company, and settled on a flat 8% management fee, everything included, and I moved forward. My reasoning now is that my time is way more valuable doing anything else other than managing a place, and the money I spend will save me more money that I can make elsewhere.

So I did it…I hired a property manager for my first house. Now remember, I’m still managing my other 4…that’s really easy. But if I have another vacancy, the management company will get that one too. And eventually I’ll slowly phase the management company in to replace all the work I currently did.

I’m only a month into this so far, but overall I like it. It’s amazing to be “Stress free” and have that distance between you and the tenant. I like that someone else handles it all, and all I have to do is simply just collect the check…I’m a little paranoid that something might fall through the cracks if I’m not micro managing it, but I’m doing my best just to let someone else take over.

So that’s the story, and that’s why I hired a manager for one of my properties. If this goes well, I’ll slowly phase it in to everything else and have real estate investing become 1-2 hours per month more passive.

For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness@gmail.com

Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq

Favorite Credit Cards:
Chase Sapphire Reserve – https://goo.gl/sT68EC
American Express Platinum – https://goo.gl/C9n4e3

Comments

Guillermo Sanchez says:

Yeah I'm at 4 single family homes and idk I think wall street is way better or big deals like 50 units and up

LessThanAvg Player says:

I heard it costs 150 bucks to change a lightbulb in Australia.

AustinAirCo says:

I've seen enough shoddy work in my career to last a life time. I do it all myself. 'Stay small, keep it all. — and there's far less trouble. No need for arguing over 7 dollar light bulbs. If they are going to charge you $7 for a light bulb, they are going to nickel and dime you to the death. But that's why they exist, finding people with disposable income and come up with ways to cut you with paper, a few dollars here and there. Poor Graham is going to be on blood pressure meds for fighting with property managers over $7 light bulbs. Don't worry Graham, I'll leave a 'light' on for you. (One of those Kmart special lights, even though Kmart sucks. LOL)

Jake Tran says:

The best dramatic sound effects in the game

nicholas says:

its honestly to interesting and cool getting to the point in life where your time becomes super valuable and things like hiring managers saves you time and money. idk, i just think that is super cool. awesome video graham!

Colin Reid says:

I mentioned this on the FB group recently. I also saw one of my personal limitations on Brandon Turner's video about management today or yesterday.
My time isn't necessarily worth enough to rule out self management, but I do have a demanding salary job. I can't make time during a weekday to deal with it, and often cannot even have my phone on me at work.
I also know I'm a softie. When confronting a tenant, I know I'll fall for whatever sob story they give me, kick myself later, and lose money. When dealing with a tenant through a property manager, I can think more clearly, and let them be the bad guy. Worth every penny of the 10% I pay every month.

James Edwards says:

Property managers are lazy and could not care less about your real estate investment. They're happy to take their 8% management fee and do nothing to earn it. If you are a right now guy as I am, you will end up taking the management back yourself or selling the property. If you don't have time to manage your own investment then you don't have time to own it. I have owned rentals since 1986 I know what I'm talking about.

Justin Crediblename says:

I was at the hardware store, looking to purchase a dimmable LED high wattage bulb. it was 11 dollars.
If you want a dimmable LED bulb with high output and great Color Rendering Index, edit (and digitally controllable, multi-color changing) you're looking at 20 bucks. …for just the bulb.

FantomLightning says:

Holy hell this dude is attractive…

Joseph Richardson says:

Clicked like for ya. Good stuff

xpicklepie says:

A good property manager is worth their weight in gold. A bad property manager will make you wish you were dead. Both types look the same. Good luck.

JFallacy says:

You should be micro managing that’s a good thing. You like shit to get done your way and make sure it’s right. Great Video Graham!!

Millennial Mike says:

Ligma… Graham… you son of a gun

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