Updated January 17, 2022
It's wonderful when everything that goes right with one rental investment property also goes right with the other properties in your portfolio. However, it can be tough to handle everything that can go wrong with one property when they affect all of your properties.
You want to grow your portfolio—but the amount of work that comes with growing is too much for many DIY landlords to handle. As investors with multiple properties know, every challenge that comes with a single property is amplified. With numerous properties, your workload as a solo landlord and investor grows. However, it's your profit that should be growing.
It's a lot to handle for even full-time landlords. If you're out of state or have a "day" job, it's a significant challenge to manage your investment property towards profitability in your "free" time. However, there's no need to miss out on the income from multiple investment properties; you can grow your portfolio without additional work.
If you've mastered the work required for one property, it can feel like adding a second (or more) can't be that much additional work.
If you work a job during the day—then manage your portfolio in your after-work hours—it can feel like a landlord to more than one property is manageable. However, multiply everything you do—daily—for one property by the number of rentals you want to own.
The financial burden on your time quickly adds up! Plus, you don't want to compromise the care and attention you gave to your first few properties when acquiring more.
Creating a professional listing for each property isn't easy. If your properties are throughout the DFW metroplex, you need to include specific details that pertain to each property and neighborhood. When it's time to show a property, it's tough to be available for more than one potential tenant at multiple properties. An excellent way for investors to circumnavigate this issue is to invest in turnkey properties; they're already leased and ready for you to add directly to your portfolio.
One of the biggest mistakes landlords can make is not doing a thorough tenant screening. This can negatively impact their rental property in several ways. Some of the consequences of not doing a tenant screening include:
What if you have to find tenants for multiple properties simultaneously? You can't compromise your process or standards if you're short on time—without the risk of placing a bad tenant in one of your properties.
One of the best decisions an investor can make is having a well-trained, reliable maintenance team to handle all inspections and requests for repair and service. A good team will help keep your rental properties running smoothly and efficiently while freeing up your time to focus on other aspects of your business. Here are some of the benefits of having a maintenance team in place:
You want every property to benefit from the same level of excellent repairs and preventative maintenance. As your real estate investment portfolio grows, this will become more important but harder to accomplish. Routine inspections plus the move-in and move-out inspections across multiple properties take time.
Bad things seem to happen all at once: If a water heater leaks in one property, how do you manage your time and resources when the roof leaks at another property at the same time? As much as you want to be there, property owners can't be everywhere at once. You need more hands to take care of your growing portfolio.
As your portfolio grows, your solo-landlord job quickly grows into one that could use some reliable help! What kind of people do you need to continue adding long-term wealth?
Property management is one of the most important aspects of owning and operating rental properties. A professional property management staff can help landlords manage their growing real estate portfolios while also ensuring that their tenants are well cared for.
Property managers can take on various tasks, including rent collection, maintenance and repairs, and tenant screening. They can also provide valuable insights into the local rental market, which can help landlords make informed decisions about where to invest their money.
A few key people can help you manage multiple investment properties:
Adding more bodies to grow your portfolio can feel like the correct answer—but going that route doesn't always take work off your plate. You have to manage that team and make sure they coordinate according to your expectations. If you have a separate career that you do during the day, managing a team of rental property staff can't always take place after hours.
Plus, you have to pay each person on your staff. Payroll or contractor costs add more expenses to your rental property business. Are you able to recover those costs with the monthly rent for each property?
If your biggest need is to reduce your workload while growing your investment property portfolio, there's a better way to get more help managing your properties!
When you hire an expert DFW property management company, you add simplicity back into your investments. You get a professional team that has processes to make it easy to add more properties to your portfolio.
RentHub Property Management handles everything from marketing your rentals to screening tenants, collecting rent, and providing expert maintenance. Plus, the boost to your investment property income more than offsets the cost of high-quality property management services. Our established processes make it simple to multiply your properties—and profits—without the added time or expense that many investors experience when trying to grow.
Contact RentHub Property Management to learn more about how we make it easier—and more profitable—to grow your investment property portfolio in the DFW area! You can also get started with a free rental analysis!