I don’t want to wax philosophical, but life is too short to SMIPO (Self-Managing Investment Property Owner). For a monthly collected rent of $2,400 we charge $120 a month to manage professionally a property. Since property management fees can written off on your taxes, that equates to $75 a month (depending on your tax rate) or $2.50 a day. My double non-fat latte at Starbucks costs $3.95. If you wash you car twice a month, that costs $30 (no write off there). I suspect your car is worth less than $100,000 and is a depreciating asset. I will guess your rental property is worth more than $500,000 and appreciates almost every year.
Why don’t people wash their own cars? It would take me at least an hour to wash my car. If I make $100,000, my time is worth $52 an hour. If I take it to a car wash it costs $15 and takes about the same amount of time. I don’t have to work up a sweat or buy the stuff to wash the car. Even if you do a good job, I suspect the car wash does a better one. The car wash has better tools and equipment, and the guy who cleans the interior at the end washes more cars in a day than you do in a year. Let’s compare that to property management:
- TOOLS- Our company uses the best property management software making it easier for tenants to be paid and owners to receive disbursements. We also track every expense on your property and report all the income to the government.
- EXPERTISE- There are many laws, addresses, rental properties and a long list of do’s and don’ts. We manage hundreds of properties and keep abreast of the laws.
- BETTER TENANTS- If you manage your own property, you may have to secure a tenant once every couple years and you may go by the seat of your pants to pick the best tenant. We will secure of 200 tenants this year and utilize a Better Tenant System. We know what to look for in an applicant.
- 24/7 SERVICE- Problems with tenants and properties don’t occur at the most opportune times. You will be gone weekends, or take vacations, or simply not want to be disturbed. We are here for you and your tenants.
- WE TREAT YOUR ASSET, AS AN ASSET- No doubt you have made some good financial decisions to be able to own an investment property. Go on with your life and let us maximize the income and minimize the expense. Make more money and acquire more assets. Too many owners get attached to their rental and this clouds their decision making. Life is too short to SMIPO, but we exist to handle your 3 T’s: toilets, tenants and troubles.
Your time is invaluable. Rather than meeting a potential creep from Craigslist to show your rental, let us handle that. Spend time with your family, enjoying a hobby or catching up on some quality sleep. Let us handle the 3 T’s: toilets, tenants and troubles.