Most investors, when they are starting out, tend to become too involved with their responsibilities as a landlord. They want to be involved with everything from cutting the grass and painting the units to attending to the complaints of their tenants. They believe they are doing fine by working inside their business rather than working on it. However, what they forget is that they can only become a very good landlord in this way and not a highly successful investor. They can easily miss on lucrative deals to add to their portfolio as they are busy listening to the grievances of their tenants.
Don’t allow yourself to be sucked in
Land lording can be very intoxicating business. You buy a property to earn rental income from it. You are so excited and happy that you put all your time and energy into your property, trying to make all your tenants happy. Of course, you can generate more positive cash flow form a property if you cut down on expenses. But devoting all your time as if you are doing a job and your promotion depends upon your performance can prove harmful for your business as a real estate investor. You may be happy cutting the grass in the front lawn of your property, but you can also miss out on attractive property deals in the meantime.
You are not meant for menial jobs inside your property
There are many jobs and tasks involving your property that you need to take care of as a landlord. But you are certainly not expected to spend your time and energy on attending the complaint of poor performance of HVAC in one of the units in your property. This is the job best carried out by an HVAC specialist, not you, the landlord. Many landlords make the mistake of trying their hands at various tasks associated with maintenance and repairs in their properties. They think they can save their money by doing these jobs themselves as otherwise they have to pay charges to professionals.
Ask yourself this question? Do you want to become an HVAC specialist, running around and attending to complaints made by your tenants? Yes, you may save a few hundred dollars this way but what about missed opportunities as a real estate investor? If you concentrate more on your business, you can add to your portfolio and therefore earn a much higher positive cash flow than when you are working in your business and keeping everyone happy. What you are attempting is the job of a property manager. You know you can avail dedicated services of a professional property management company by just paying 10% of your monthly rent collections?
You’re in the business to purely earn profits. You can increase chances of higher profits by getting more time for yourself instead of putting in all your money into management of one of your properties. You can buy equipment and accessories and save small amount of money by working in your business. But you can easily lose out on thousands of dollars that you could have earned by working on your business.
You don’t need to be an electrician, a plumber, or a window specialist to solve the problems of your tenants. You need to be an entrepreneur, trying to find the next deal that can make you earn lots of money.
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