The Power of Self Management

Many people are afraid of real estate investing because of the thought of dealing with tenants. These people ask “What happens when they call in the middle of the night to fix a toilet?” and things like this keep them from investing. What if I told you that self managing your rentals really isn't that bad and it is actually a game changer? Self management has the power to change a business for the better. In this post, I’d like to share with you the benefits that come about through managing your own rentals.

Save Money

This first and major benefit to self management deals with the saving of money. Property managers can take around 10% of the monthly rent from your property. Each month of managing your properties will put this 10% will go to your pocket instead of someone else’s. This money can be reinvested into more deals thus making you even more money. By cutting out the property manager, you are taking the action of disintermediation. With this technique, you are essentially cutting out the middlemen who are pulling money from your business. This same rationale can be applied to other parts as well. From here out you might look into doing your own snow removal or landscaping or even managing a small rehab. These things will save you money helping create growth and sustainability.

Better Care

No one takes better care of the things you own better than yourself. This is just a simple fact. Other people will not put as much care and attention to your property as you would personally do yourself. Your high quality care will catch things that need to be fixed and your properties will likely be better off in the long run for this. Your better care will also be noticed by your tenants and they will likely treat your and your property better for these actions. Tenants will stay longer, which in turn lowers turnover costs.

Learn

Finally, managing your own properties will help you to learn a ton. You will learn problem solving skills, improve your personality traits, and get hands on experience. You will learn the ins and outs of what is going on day to day in your business and this will help you to run it more efficiently. These experiences are invaluable and can only really be learned by doing. You will learn way more this way than any book or podcast available.

Managing your rentals will be no easy task but man will it be rewarding. You will mess up, you will fail, and this is completely ok. Life is about learning from such setbacks and you will be better off for these experiences. I do want to say that it is alright to delegate tasks within your business. There are certain things that are meant to be left to the professionals.

Be smart and work hard. Success will follow.