The answer to this is quite simple.
I have a four year old that has a superb filing system for keys.
No matter where I place them, he finds them and systematically organizes them.
Only one problem, the rest of us just haven't figured out his ingenious system yet, but I am sure that we will shortly and we will all breathe a sigh of relief.
** "The future will always pay those who are patient with it." - W.G.P.
I would like to know of anyone with 20-30 investment properties who still manage them themselves. Anyone who does manage them keys and all would be a property manager rather than a property Investor! I think it is important not to lose sight of the whole picture. Time spent managing your portfolio could otherwise be spent looking to add to it, or improving the ones you already have
I read somewhere that u can get a masterkey for all your locks, with 2 differnet subkeys, then u change the tumbler evertime u get new tennants? can anyone expand on this? This would be awesome with one key to open all your houses!
Many of the lock companies, and we tend to use gainsborough, have key alike locks, so that even though the appearance of the lock is different I have a master key for building and the tenants can each have their own keys in the end.
Having said that I own quite a few properties and don't have a key to any of them. I don't want them or the responsibility.
That's what managing agents are for.
> From: "Michael Yardney" <firstname.lastname@example.org>
> Many of the lock companies, and we tend to use gainsborough, have key
> alike locks, so that even though the appearance of the lock is
> have a master key for building and the tenants can each have their own
> keys in the end.
My friend lives in a block of units to which the main door is a master
lock - all the tenants' personal door keys fit the main door's lock.
Unfortunately for the occupants, so does every other key on a key ring.
Not safe and secure at all.
I think I have taken exception to your post as I manage some of my properties and I don't consider myself confined to the role of property manager. Your statement "Time spent managing your portfolio could otherwise be spent looking to add to it, or improving the ones you already have", contradicts itself. Isn't improving the ones I already have "managing" them in a less restrictive definition of the word?
If I control 20 properties worth $6M and they take me 8 hours per week to manage, what's my hourly rate?
An agent would charge about $23,200 to manage the tenants and lettings (one weeks letting + 7%). N.B. this is not managing your investment but managing the lettings, and who is the best person to manage your money?? And by the way, I have and do manage considerably more than the numbers mentioned so please don't chip me on the amount of time it takes.
Anyway 8 hours a week for 48 weeks is an hourly rate of of $60. Not many Australians earn more than that, I think the average wage is around the $20 per hour mark (even accounting for opportunity cost the average income earner is $40 per hour in front). But there is more; the portfolio is worth about $6M and assuming it grows at a modest 5% p.a. that's $300,000 per annum. Now assuming it takes you another 2 hours per week to manage your capital growth, that's $3,125 per hour.
So at $3,185 per hour, and assuming a modicum of skill; would you manage your portfolio yourself?
Apologies if you took offence to my comments. the comment was not directed at you personally but rather to prompt discussion on the subject of do it yourself management. My previous post probably lacked the detail but I will endeavour to explain myself and correct some assumptions you have made.
With reference to my comment about improving the rental properties that people may already have I mean capital improvement or value adding. This is something I do all the time which allows me to then gear off the property to by others. For example I recently purchased a property for $160,000 in a street where other houses were selling for $215K. I spend a further $20K on this property and it is now at a market value of $215K(like the others in the same street) I have made a paper gain of 35K!Now if I spent a month full time making these improvements My hourly rate would be $218/hr tax free!
With reference to your other comment regarding capital growth I think you have got a little carried away. It has little to do with the subject of property management and more to do with capital gain. In a closing note I have great respect for anyone who manages their own properties it is simply a time factor for me. Managing your own investment properties is great until something goes wrong.
Hi Mike congrats on the successful renos - we're on the same wave length there.
Yes I did get carried away ;-) but I believe you can and I do manage my cap gain - your renos prove that.
I use property managers for stuff interstate as the tyranny of distance is not easily overcome. Locally I manage my own because property managers (with some exceptions) are not particularly well trained or conscientious about their work. They also have varying degrees of people skills and good people skills is 90% of the battle.
On 3/4/02 9:17:00 AM, Michael Vaughan wrote:
>others. For example I recently
>purchased a property for
>$160,000 in a street where
>other houses were selling for
>$215K. I spend a further $20K
>on this property and it is now
>at a market value of
>$215K(like the others in the
>same street) I have made a
>paper gain of 35K!Now if I
>spent a month full time making
>these improvements My hourly
>rate would be $218/hr tax
Congratulations on a good deal.
My quibble is when people brag about paper gains and tack on the tax free cherry.
If you don't have the cash in your pocket, all you have is a potential gain. Many people become unstuck when they need the money and can't get at it.
Your hourly rate is also a phantom. I'm not saying you should cash out, but could you afford to eat if you only did those sorts of deals?
The common way to cash out tax free is to borrow against the increases value. While there is no tax payable on such borrowings, the interest is not deductible either.
Again I'm not saying that structure is a bad idea.
My quibble didn't add to the sum of human knowledge. I still like your deal though.