The Hidden Costs of Self-Managing Your Portfolio
Summary
This article from BiggerPockets discusses the hidden costs of self-managing a real estate portfolio, particularly the time investment and opportunity cost. It highlights how the time spent on tenant communication, maintenance, and other tasks can be more expensive than professional property management fees. Hosts should evaluate the actual cost of their time and consider the strategic benefits of focusing on growth rather than day-to-day operations.
Key Insights
- •65% of self-managing landlords report feeling overwhelmed by the time demands, and 43% admit it has negatively impacted their primary income source.
- •Self-managing landlords spend an average of eight to 12 hours per month per property on management tasks, potentially 60 hours monthly for a five-unit portfolio.
- •Properties with professional management see 23% less tenant turnover and 31% faster resolution of maintenance issues.
Action Items
- ✓Consider implementing systems to eliminate chaos and create predictable, efficient workflows.Effort: mediumImpact: medium
- ✓Evaluate the hidden cost of your own time spent managing properties to determine if the savings on management fees are offset by the time demands.Effort: mediumImpact: medium
Tools & Resources
- →Invest 5S: The article mentions Invest 5S as a company offering turnkey real estate investments.
Common Mistakes
- ⚠Self-management can lead to career impact creep and missed promotions or reduced earning potential in your primary job.
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