Several property investors consider a good team of professionals as one of the most important keys to success in wealth creation. How do you find the best ones to help you grow your property portfolio?
Throughout his investment journey wherein he successfully built a nine-property portfolio, Eric Wu has made sure to engage property professionals to help him make the best decisions and ultimately achieve his financial goals.
One of the most important parts of his financial team are property managers, who oversee the maintenance of his properties as well as the operations associated with his investments.
According to Mr Wu, a meaningful conversation with potential managers help him assess the role they could play in helping him grow his portfolio.
Some of the questions he asks are:
“Once you talk to them, you will know, roughly, whether you are on track or not,” the property investor said.
Many investors often think twice when property managers take high percentage from their rent.
However, Mr Wu believes that while the commission is important, it should not be a very critical factor to consider when choosing a professional to work with.
“Very likely, they’re only getting 1 per cent or 1.5 per cent, and that’s only a few dollars away,” according to him.
“It doesn’t really matter much because not only can they manage your property well and keep everything in order, they can also keep the tenant happy and paying on time – all the issues [are] addressed on time.
“I'm happy to pay the person more. There’s no problem at all.”
At the end of the day, good professionals are worth their weight in gold as they provide quality services and allow the investor to enjoy the benefits of having more time and less stress in their life.
“You’re paying your property manager to take the headaches away from you,” Mr Wu highlighted.
Mr Wu believes that dealing with property professionals should be a “reciprocal business” – as long both parties enjoy the benefits of working with each other, then it remains a good relationship.
However, if an issue remains unsolved for months or tenants continuously explain and eventually leave, then maybe it’s time to reconsider the members of the financial team.
According to Mr Wu, good property professionals are proactive and, thus, consistently seek opportunities to help the investor succeed.
“I really like the proactive managers. They can look at opportunities – whether they can increase rent or not,” he said.
“If the market’s not good, they should tell me, ‘Rent should be kept at where it is,’ or they can say, ‘This is what you can do to your property to increase the potential of increased rent.’”
Property managers are also expected to be transparent around bills and maintain good inspection management and reporting.
Ultimately, good property professionals put the best interests of the investors first and foremost.
“It’s like they are running their own business but they are running it for my own benefit – they also think like I think. They put their foot in my shoes for my interest, not theirs only,” Mr Wu concluded.