Rental Property Mistakes: Part 1

Rental Property Mistakes: Part 1

I would say one of the biggest mistakes that I’ve made in my investing career was not acting faster when there was a problem a to elaborate everyone knows I buy turnkeys. And back in the day, there were some property managers involved with turnkeys (that are no longer), but, they were not that hot. I knew it at the time, but I stuck with them because the properties came with either rental guarantees or some kind of tenant guarantee. So I thought it would be smart of me to stick with that property management because I would get free tenant replacement, or free rent guarantee, or whatever it was. But, in reality, what ended up happening was they did not put in good tenants really ever. Even though they kept replacing them, it kept costing me months of vacancies. Or—in the case of the rental guarantee—those guys left and the rental guarantee was not at the market rent. In hindsight, I would have absolutely (even though it seemed like it would cost more money at the time) I would have gotten rid gotten rid of those managers immediately. I preach all the time that when it comes to property management you can’t slide. I heard someone say “I’d rather have an average property with an excellent property manager than an excellent property with an average property manager.” It’s totally true. It’ll absolutely kill your investment. Granted, good property managers are hard to find but they are out there. Remember, you are the boss when you own properties. Don’t hesitate to get rid of somebody. A property manager essentially works for you. That’s not a reason to jerk them around, but they do work for you. If they’re not doing a good job it can absolutely cost you a fortune. That is the biggest thing that happened to me in the beginning. I didn’t get rid of them sooner. I think that’s the biggest mistake. It’s not the only mistake by any stretch, but that’s one for you to consider for yourself. Cheers!

4 thoughts on “Rental Property Mistakes: Part 1

  1. I do not like property management companies period. They are no where near as efficient as I am. Why should they be, they are not the one's who gave their blood, sweat and tears to grow my business. I did. I would suggest to investors(one's with children) to teach and train your children. One day, they may run the company as well as you. Perhaps.

  2. Property managers are a waist of money. Do it yourself and use a solid rental/lease agreement and legal back up. Managers are never going to do a good job for you. I've done it without one and it's the best thing ever. I know exactly who is living in my properties and IF they are paying ontime. I enjoy finding good tenants. Judging there character and "training" them to pay on time is like raising children. So, done that. Property managers are like those guys/boyfriends who tell you they will save you but take your money all the while.

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