Use a rental property management or not?

Want to get into real estate investment?

You do not want to buy a 4-plex or 5-plex, but going beyond it. You are looking for a rental building, with much more than 5 units.You are ready to embark on visits with the help of your real estate broker. But a very important detail is still a dilemma for you: Being still employed and not yet financially independent, there are certain tasks that make you doubt your ability to endure in this sector.

Here are some points to analyze that will certainly help you move forward in your project by being more appeased.

- Do you have a job that generates a very good salary and that you do not want to leave for the moment and a family with whom you want to spend a good part of your time? Know that it can be more profitable to delegate than to want to do it alone. Because, in addition to excessive fatigue and family problems, know that the time you can sacrifice within your working hours for the management of your rental apartments could represent a financial loss because your hourly rate in your job is probably significantly higher than the manager you will hire.

So, first of all, estimate the value of your time.

- Do you want to increase your housing stock in the short term? It will therefore take you time to search for your other properties. Your real estate broker will know how to help you and save you time in your search but if you intend to acquire several additional properties in the years which will follow, not only do you run the risk of running out of time to make yourself available to your broker, but once another building is acquired, your time to invest in the management of your buildings will obviously be greater. Organize your schedule as well as possible, or maybe you will need to delegate and move forward for the best?

- The Property Manager, according to his/her mandate, is responsible for building maintenance, lease negotiations, collection of all rents, management of potential disputes between tenants or before the Régie. These are real skills that are needed to carry out all these missions head on, do you have the skills? If you think so, then you could best manage your rental property, and if you doubt it, it would be wiser and perhaps less expensive to hire a property manager.

 

In any case, as you will have understood, getting involved in the purchase of a rental property also involves analyzing the points discussed above. And having thought about this before, you will be able to build your procurement budget in a more informed way. Your real estate broker will help you calculate the profitability of the building you have chosen depending on whether you decide to manage it yourself for through a third party.