Here’s an update on my property manager, and my experience using them on one of my rental properties 8 months ago…enjoy! Add me on Instagram: GPStephan
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Since 2011, I’ve bought 6 properties…three houses, two duplexes, and a triplex. All of them were purchased so I could fix them up and then rent them out. And until 8 months ago, I did ALL the managerial work myself. But last year when I had a vacancy from a tenant who was relocating for work, I just didn’t have the time to show the property to anyone else. I was so busy working as a real estate agent and trying to pump out 3x youtube videos per week that I didn’t have the time to answer every phone call that came in, I didn’t have the time to manage the work needed to fix it up, and I knew that I pretty much had no other choice other than to hire a property manager to handle it all for me.
In the beginning, I definitely had some issues:
My first complaint was that I disliked the pictures they used.
My second complaint was that they added a 20% surcharge to all the renovation work the property needed, which on a $3000 renovation, was an extra $600.
My third complaint was that they aren’t as careful about picking tenants as I am, just because it isn’t their place.
Now all of that was over 8 months ago, so here’s what’s happened since then:
First of all, I rented the property out for 15% MORE than my last tenant was paying…that was a combination of the rental market just going up in value, and that I always rent my properties under market value just to rent it out quickly and attract a good tenant.
Second, it’s been REALLY, REALLY nice just to have the peace of mind not to THINK about this property at all. P
Third, it’s nice that they keep track of ALL income and expenses for me, I don’t do a single thing except give their end of the year statement to my CPA who handles everything else on my tax return.
Fourth, I have to admit, I like the distance between myself and the tenant. And big lesson for all the real estate investors out there: the more friendly you are, the more you get taken advantage of. Tenants can, and will, push limits and the more you budge, the more they get away with.
Fifth, my overall experience is that - after 8 months - hiring a property manager was ABSOLUTELY worth it, and I should have done it much sooner. I’m slowly going to be incorporating them into the others, and hopefully one day I’ll be fully removed from the day-to-day aspects of managing rentals.
And for anyone watching who’s thinking about investing in real estate, or if you have rental property already…my advice is to first do it yourself, learn how the business works, learn how to manage tenants…and once you get to the point where your time is better spent elsewhere, THEN get a property manager.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF (Limited Time Only)
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Merch: http://www.GrahamStephanStore.com/
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Since 2011, I’ve bought 6 properties…three houses, two duplexes, and a triplex. All of them were purchased so I could fix them up and then rent them out. And until 8 months ago, I did ALL the managerial work myself. But last year when I had a vacancy from a tenant who was relocating for work, I just didn’t have the time to show the property to anyone else. I was so busy working as a real estate agent and trying to pump out 3x youtube videos per week that I didn’t have the time to answer every phone call that came in, I didn’t have the time to manage the work needed to fix it up, and I knew that I pretty much had no other choice other than to hire a property manager to handle it all for me.
In the beginning, I definitely had some issues:
My first complaint was that I disliked the pictures they used.
My second complaint was that they added a 20% surcharge to all the renovation work the property needed, which on a $3000 renovation, was an extra $600.
My third complaint was that they aren’t as careful about picking tenants as I am, just because it isn’t their place.
Now all of that was over 8 months ago, so here’s what’s happened since then:
First of all, I rented the property out for 15% MORE than my last tenant was paying…that was a combination of the rental market just going up in value, and that I always rent my properties under market value just to rent it out quickly and attract a good tenant.
Second, it’s been REALLY, REALLY nice just to have the peace of mind not to THINK about this property at all. P
Third, it’s nice that they keep track of ALL income and expenses for me, I don’t do a single thing except give their end of the year statement to my CPA who handles everything else on my tax return.
Fourth, I have to admit, I like the distance between myself and the tenant. And big lesson for all the real estate investors out there: the more friendly you are, the more you get taken advantage of. Tenants can, and will, push limits and the more you budge, the more they get away with.
Fifth, my overall experience is that - after 8 months - hiring a property manager was ABSOLUTELY worth it, and I should have done it much sooner. I’m slowly going to be incorporating them into the others, and hopefully one day I’ll be fully removed from the day-to-day aspects of managing rentals.
And for anyone watching who’s thinking about investing in real estate, or if you have rental property already…my advice is to first do it yourself, learn how the business works, learn how to manage tenants…and once you get to the point where your time is better spent elsewhere, THEN get a property manager.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
Micromanage much?
Any update to this now ??
nice speech
I didn't give this video a thumbs up because Graham didn't tell me to SMASH the like button. He only told me to hit the like button, and that's just not good enough.
Do you recommend investing in a condo that already has a property manager?
Really enjoy your videos, always a lot of good information.!! 👌 I got into real estate almost 3 years ago, working toward buying rental properties. I am wanting to have my first property ready to rent by the end of this year, I purchased in a tax sale.
I would love to see a video on how you manage your properties yourself!
Stephan why don’t you. expand your business with a property management division.
Darn good information!
Okay this is driving me crazy, what is that white car in the background?
I've had a plumber called every year because of a blockage in the kitchen sink. Every time it's always over $200. A plumber told me that most landlords take out garbage disposals because renters put all kinds of stuff down them. What's your experience with this?
Almost a year later, how are you doing with your property manager?
Hi Graham who is reminding the tenant that they need rental insurance, if the building burns down, not that it would, you are covered, the tenant is not covered without rental insurance, that insurance is relativity cheap. Don't want you standing out there explaining to your best tenant in the world, your insurance doesn't cover their possessions. Just thought I would bring that up.
Is being a proper manager or being a buyers real estate agent more useful in Investing in Real Estate?
This is all wonderful advice graham, thank you for sharing
How Can I find a good Property Manager. I have used a few and it's been a nightmare. When I manage the property my self I make Money and when I use PM I loose money like crazy with mysterious repairs.
Thanks and I appreciate the effort on your video. Question..are your properties mortgages or they already completely paid?
The reason i am asking is with the property management taking 8% of the rent along with taxes, insurance, renovation and payment to the bank if it is still mortaga will still be profitable after all that?
I appreciate the effort.
Good Stuff
@graham and team, Record keeping, anyone got some example filing structures to keep your documents organized on the computer ? Would love to learn from your experience
Wattsubi guys
Brings back memories of a property where I noticed the rent wasn't paid, unfortunately the manager hadn't, she also gave the tenant her extra keys. That's one company I haven't used again.
Like button have been smashed.
I managed the two rental properties I owned when we live in Arizona (Tempe, near ASU). When we relocated back to California, I had to use a management company. 8% – and I felt like they did nothing. They had much less to lose if the properties were not rented quickly, and I was the one who lost a month or more of rent when they sat empty. Based on my experience, I STRONGLY recommend managing any rental properties yourself.
Great perspective!! Thank you Graham!
Graham, I swear we are twins separated at birth. I am the exact same way with my properties.
Can you do a short video comparing property management companies? Just like how you do for credit cards, banks, etc
I would love your help there
Thanks
Comment algorithm! Haha thanks for the video. Lots of good information! Your videos are such inspiration.
I know someone who lives in Florida and had a property in New York. He sold it because he said tenants take advantage of you if you live far away. Could a property manager easily have solved this?
Hey Graham. Love your videos. Have you’ve done any videos on how you track your income using quickbooks, and categorize your rental income and expenses? Also,what do you set aside for taxes from rental income. Im curious to learn more on how you manage and track these things for tax season. Thanks!
Hi Graham, not sure if you have already done a video on this but maybe going through the contracts you give to your tenants and what you think is crucial to have in there? Thanks! Love your videos!
As someone who is a property manager I will tell you they pretty much hung you out to dry. You may be good at investing and earning money but there will always be people out there who are 10 times better than you at stealing the money you make don’t let that one bad experience discourage you from hiring future property managers
I agree
r5
A one man army kudos good sir
You DONT have supermodel tenants? Your doing it wrong lol!😂