We all know at least one of those super highly productive folks that make you sometimes wonder “how exactly do they do all that?”
This is a short story of one of those guys.
Jason had been self-managing five properties in Olathe for quite a few years while living out of state. It all started back in the summer of ’69 when he got his first real six-string… I mean the summer of 2009, with his former residence.
This is a pretty typical start for quite a few rental real estate investors. You get a new job and relocate or simply buy a new house in the same area, but hold onto your old house and rent it out. It’s also not unusual for this to be the beginning of something bigger. That was the case for Jason. Over the span of ten years from 2009-2019, his portfolio of rental properties went from 1 to 6.
Then came the year of 2020. And now the times, they are a changin’… and making us think about how we do our work. I guess nothing can last forever.
In October 2020, when he purchased a duplex and hit 8 doors, he realized (and possibly was persuaded by his spouse) that too much of his time was being pulled into the day-to-day property management activities. It’s not that the day-to-day activities of property management aren’t incredibly “fun” and entertaining, they’re likely not a great use of your time. Especially when those activities start interrupting your career and family commitments.
What are some of the typical activites?
- Rent collection
- Coordinating maintenance requests
- Processing Security Deposits
- Accounting / Record keeping for the items above
Self-managed properties are generally underperforming in one way or another. They either have a below market rental rate, are not capturing additional income opportunities or simply neglect to enforce terms of the lease.
In light of the above “fun-fact” about these properties underperforming, it helps make the transition to management a win-win scenario. You see, it’s very seldom that we bring on self-managed properties and can’t find ways to increase the revenue. More often than not, the increased revenue pays for 100% of the management costs. Quite often, the increased revenue exceeds the costs of management.
In addition to reclaiming his time, Jason has realized the benefits of full service management that comes with the resources of a team of people, each with unique roles and skillsets. For example, I’m presently working on a renovation for one of his properties that would have been quite the task to efficiently manage from out of state.
So now, instead of trying to be a one man band, Jason bought front row seats to the concert and gets to sit back, relax and enjoy the show. :)
We will be on tour here in Kansas City for many years to come. Are you ready to “quit the band” and “enjoy the show?”
To learn more about our full service property management services, please give us a call!