With our last two articles, we've gone over some key insights that investors need to not only start a portfolio successfully, but also how to maintain the momentum of that success. However, there are still some additional insights we need to cover with this third article that are crucial for investors looking to continue on a successful track to long-term wealth.
Once you've protected your newly-developed portfolio with a business entity and forged partnerships to help you find the right properties, you may suddenly find yourself buried under an avalanche of work. It's the sign of a successful portfolio, but that doesn't make it less stressful—or potentially detrimental.
It's a pretty well-known fact that the more rental property you have in your portfolio, the more work you'll experience as a property owner. However, work associated with your investment properties doesn't grow linearly as you add new single-family homes and duplexes to your holdings; it grows exponentially!
With great success comes great responsibility: if you want to continue experiencing the rewards and benefits of a profitable real estate investment portfolio, you have to work to keep it profitable. It's when you find you can no longer manage the workload of a growing real estate portfolio alone that it's time to tap into one of two methods:
- Hiring, employing, and managing your own staff as you grow
- Working with seasoned Parrish property management services.
When You Decide to Build Your Own Staff—and Company
Unless you want to make real estate investing your full-time career, you'll likely either find yourself heading down this path or working with full-service property management.
You'll recall we discussed the importance of choosing the right business entity in one of our articles. As you decide to grow your portfolio and begin to add professional staff to help manage your holdings, you'll need to discuss with your attorney whether or not your business entity structure needs to change as a response to these developments.
- Adding staff means you'll either need to directly manage the productivity of those you hire or add members to your team who will.
- As you grow, you'll need to update how you handle payroll to meet the needs of your growing company, which potentially means bringing accounting staff on board.
- You'll need to develop the right relationships with maintenance and repair professionals or hire full-time, in-house staff to manage the care of your rental homes when maintenance requests come in.
These are just some examples of the direction you'll end up traveling if you decide to build your own team from scratch. Your real estate investing connections may be able to give you some pointers for who to work with, but you'll quickly find that this alternative gets costly—and stressful.
If you got into rental property to experience passive real estate investing, you wouldn't find peace of mind with this method. The workload you thought you'd lessen by hiring staff has likely only increased! Save yourself the hassle (and expense) of building your own team, and turn to Parrish property management to preserve your developing real estate empire.
Why Property Management Serves Investors Better
Instead of having to build your staff around the growth of your portfolio, you can select properties and integrate them with proven, established processes from the start!
Experienced property management professionals like our staff here at Gulf Coast Property Management are able to handle any portfolio size, and we know how to adjust to the unique needs of each investor's financial goals. You shouldn't have to settle for a 'taped-together team' when you could start off on the right foot with full-service property management.
Plus, when you take advantage of the full package of services that any experienced property manager has to offer (think rent collection, maintenance issues management, property preparation, inspections, and tenant screening services), you won't have to pay for each process separately.
It might surprise you, but it's more affordable to 'buy in bulk' with Parrish property management than it is to grow one service at a time. You'll have efficiency wired into each new property addition—which means faster income potential and returns for you as the property owner. You'll expand with a professional and personal touch when you partner with the right property manager in the Parrish area.
More Insights to Follow
Beyond what we've discussed here and in past articles, you can learn even more about how to grow your real estate portfolio successfully when you download your free copy of our free Guide to Growing Your Real Estate Portfolio! It's one of many free resources we offer here from the experienced Gulf Coast Property Management team.
If you have questions about how to grow your portfolio that require a one-on-one session, just reach out to us! We've been serving property owners in the Parrish, Bradenton, Sarasota, Port Charlotte, and Lakewood Ranch area since 2003. We've seen just about everything the state of Florida can throw at real estate investors.