If you are a new real estate investor purchasing your first rental in your local area, you may be surprised to hear us say that we do recommend you manage your property yourself, hands-on for a 6-12 month period. After this time, go ahead and turn the property over to a competent property management company BUT continue to manage your property manager instead of the actual property.
It’s very easy to think about outsourcing the property management but the only way you will learn how to manage your property properly is by doing it yourself. Why?
The reason for this is simply by having about a year of management experience under your belt, you’ll know exactly what to expect, how things should operate, how often you should be inspecting the property, how much things should cost, how to deal with vacancies etc.
Probably the most important reason for managing the property yourself is the opportunity to build and develop great relationships with your tenants. Successful real estate investors know that building good relations is the foundation of success.
Once you know how to manage your property yourself, you’ll understand everything about your property’s performance and you will have set standards for what you want from a property management company. The company you end up entrusting your property with will “know you know” what to expect from them and the chances are you’ll end up getting more effective and upfront communications from them as a result, which can’t be a bad thing, can it?
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