With rising mortgage rates it is worth looking at whether you can successfully manage your own rental properties. I manage my own rental properties and to be honest it isn't that hard. I hardly ever turn over tenants and when I do, I invest a bit of time upfront making sure I get good ones. For the most part I also deliver on my end of the bargain and keep the properties in good condition. My average rental income is around $35,000 per year (properties in Auckland city) so using a manager would cost me $3,500 per year per property. They'll also add margin to any maintenance and charge extra for debt-collection. Over 6 or 7 properties that's at least $25,000 of after-tax income I'd be giving up, which is $500 per week.
Honestly, I'd spend no more than one hour per week on my properties so that's equivalent to $500 per hour worked. Unless you're a high-powered lawyer or a classy escort, there aren't too many things that get that sort of hourly rate. When it comes to Property Management the warning bell that rings for me is other investors wanting to own property management businesses for "passive" income.
Don't know about you, but I'm not into someone else earning a passive income off my hard work. So, I use a cloud based system called TenanSee.* It allows me to manage all of my rental properties online for around $25 per month. It has automated bank feeds so can keep track of rents and expenses in real time and keep track of my tenants. It does Tenancy Agreements and literally tracks everything to make managing my tenants and properties easy. That's the rent management done and it also makes reconciling my bank statements simple.
To say TenanSee helps me manage my tenants is an understatement. It produces financials for my properties and ratios and benchmarks and all sorts of things for me to better understand how they perform. It's still early days for TenanSee which launched into the market late last year. It can only get better. If you're ready to take that step TenanSee is giving our clients a special deal on the system for a limited time. They're offering our clients the first 6 months on any pricing plan for half price. If you want to take up that offer then click below:
Another new service (only available in Auckland at this stage) is The Property Inspector. These guys will do all of your six monthly property inspections and send you a report for just $100. If you have rent arrears or problems with tenants then the guys at TPS CreditControl will go into debt recovery for you. So that's the pain of inspections out of the way and a convenient way of making sure you do them. (The TenanSee team are integrating these services into TenanSee so you can manage inspections and debt-collection from the system. So for a sum total of $300-500 a year you can do everything your property manager does and save yourself literally thousands and you don't have to even visit your properties. *JB is one of the founders of TenanSee