Realtors who want to manage properties as a side gig need to see this.
Are you a Realtor thinking about making property management your side gig? If your real estate business is doing well and your team is thriving, you may be thinking about starting a property management company. However, before you jump into it, there are a few things to think about, and I am here to bring those to your attention today.
First, I would recommend having at least 70 doors, or residences. I believe that 70 is the key number, and you could have as few as 50, but the idea is that you need enough business to pay for the salary of the person doing the property management tasks.
"You need about 70 doors to get your business off the ground."
If you don’t hire a separate person for this and just subject your real estate team to becoming property managers, that transition will likely not go well for them. A property manager has to expect challenging conversations, speak to tenants and owners, worry about evictions, and more. In contrast, an agent expects more cheery conversations and working with sales. Mixing both careers is too challenging, and you don’t want to bite the hand that feeds you.
Can you make more money if you spend more time in real estate? Or, do you have enough business to get about 70 doors and hire someone? Only then can you get your business off the ground.
If you are stuck in a bad situation, know that my company buys property management companies and portfolios, so reach out if you need help. Also, let me know if you have any questions in general. Call or email me anytime, and I’d be happy to hear from you.