Real Estate and Property Management experts--Dave Holt, Todd Breen, and Kevin Knight help you answer the question: Do I sell...or do I rent?...
The below article is transcribed content from The Accidental Landlord Podcast. Listen to the full episode, here.
Peter: All right, Jay, welcome to the show. For our listeners unfamiliar with you, please take a moment to share a brief bio.
Jay Helms: Yeah, so, husband and father of three. We lead a nomadic lifestyle, currently in Florida for half the year. I was laid off during COVID from my W2 job, and having invested in real estate for about six or seven years, we were financially comfortable to make the move.
I started the W2 Capitalist Community, catering to introverts like myself, who prefer virtual interactions. I realized the value of networking in real estate investing after our first deal, leading me to establish a virtual mastermind, which has been a rewarding experience.
Peter: Awesome. How large is the community, and what are the numbers like?
Jay Helms: We have various programs. The mastermind has about 60 members, while the pro community, about to relaunch in January, currently has a couple of hundred members.
Peter: Good to know. Your story resonates with me; I have three daughters and transitioned from a W2 income to real estate and business. Now, let's delve into the three biggest mistakes self-managing landlords make.
Jay Helms: Absolutely. So, the first mistake is the fear of the unknown. Many landlords fear the challenges of managing a property, such as late-night calls about leaks. This fear often leads them to hastily opt for property management without proper vetting.
Peter: I see. And what about your own experience with self-management?
Jay Helms: Initially, I managed until we reached three units. However, I didn't treat it as a business and developed personal relationships with tenants. Eventually, we outsourced to professional property managers for five or six years. In the last year and a half, we brought everything in-house, treating it strictly as a business and implementing efficient systems.
Peter: Treating it like a business is your second point. Could you elaborate on that?
Jay Helms: Absolutely. Initially, I got too close to tenants, and it affected business decisions. Now, we view it strictly as a business, adopting better systems for rent collection and resident management. It's crucial to separate personal and business aspects.
Peter: That makes sense. Now, let's address the third point about the fear of the unknown pushing landlords towards property management companies.
Jay Helms: Yes, the fear often leads landlords to make hasty decisions in selecting property management without proper vetting. This is where they can end up with a subpar management company.
Peter: I understand. And in your journey, have you found effective ways to overcome these challenges?
Jay Helms: Absolutely. It's essential to educate oneself about property management, implement efficient systems, and view it strictly as a business. Overcoming the fear of the unknown involves being well-prepared for potential challenges.
Peter: Great insights, Jay. Thank you for sharing your experiences and advice on self-managing landlords.