I have talked with many investors who have sold all of their properties and moved their money into other asset classes such as stocks or bonds because they think rental properties are way too big of a headache. The scenario is always the same. They made the decision to invest their money, they heard rental properties were good money makers, they purchase a few properties, and then try to manage them on their own.Pretty soon they are burned out from dealing with tenants. After a few bad experiences and a lot of phone calls from renters, they decide that rental property is way too big of a headache and they sell out. I have heard this at least a handful of times and every time I hear this I always ask “Why didn’t you let a property management company handle your properties?”.Most of the time I get a response of “well they charge way too much”. In truth, most property management companies charge between 8-10% of gross rent collected for residential properties and 3-5% for commercial. This is a small fee to pay for what you get.There is a difference between a property manager and a property management company. When you hire a property manager you are hiring an employee. You will have to pay them a salary and pay payroll taxes on them. When you hire a property management company you are simply outsourcing the management to a company. They are not an “employee” of yours.In most cases I lean towards hiring a company instead of taking on an employee. If you only own a few properties you will definitely only hire a company because you won’t have enough income to support an employee’s salary. At some point, if you get big enough, it may be in your best interest to hire a person whether full-time or part-time.Here’s the benefits of hiring a property management company when you first start purchasing rentals.
A professional property management company knows the law for landlords and will make sure you are doing everything legal
A professional property management company will know how to most effectively market your properties to achieve a low vacancy rate
They will also know how to get the most rent out of a property since they know the market
They will have a network of contractors to get the best rates for repairs and maintenance on your properties
You can learn from their wealth of knowledge and experience from dealing with rentalsYou may decide to manage the properties yourself. Many people do. If that’s what you like and you have the time, there’s certainly nothing wrong with that. But don’t forget you can learn a lot from working with a professional company.You will want to get references before picking which company to go with. Also, make sure they have their real estate license. You also want a company who specializes in your type of property. For example, you won’t pick the same company for a commercial property as you would a single family home.The bottom line is if you want to be an investor or do you want to be a landlord. Personally, I don’t want to be a landlord so I use property managers.Happy investing!
Student Savings: Save Paper, Save Money
Did you know that North American academics are among the highest paper wasters in the world? If academics in China used as much paper as we do in North America, the world’s rainforest supply would be depleted within a year. You can choose to save paper, which is not only good for the environment, it’s also good for your wallet.
1. Double side everything.
Whether you are printing the prof’s powerpoint notes to take to lecture, or printing off an essay to proofread, always double side your paper. Keeping a tray of rough paper that you can print on the back of will definitely save you money.
And, as an added tip for printing off powerpoint presentation slides, try printing more than one slide per page. Often 8 slides per pages is a good size, but try to find the size that works for you.
2. Be creative.
It’s amazing how many handouts you get in class that you don’t even need. Perhaps the department requires that every single class hand out the plagiarism policy. Now you have five copies of the plagiarism policy, and nothing to do with them. Instead of simply throwing them out, you can also use this paper to print on!
Every department in a college has boards filled with paper. Often these are concert notices, upcoming conferences, or visiting lecturers. You can make it your job to help keep the departmental notice boards clean by taking down the notices that have passed their dates. You can then keep and print on this paper. Sometimes you get the best colours to print on this way!
3. Use a computer.
The more work that you can do onscreen, the less paper you will have to print. You will definitely have to print out your papers to do a final hard-copy proofread before you hand them in, but you don’t need to print out endless drafts of the same paper. Often, you can also email certain documents to your friends and classmates instead of printing them out. Instead of printing 30 handouts for your seminar presentation, email the handout to the class a few days before you present. This will save you the printing and photocopying costs. Be sure to email the handouts out at least two days before you present, however. You want to give your classmates enough time to read and print your material.
4. Work with your prof.
Some professors accept “green” submissions. (Here you can think of green as in saving the environment, and green as in saving you the cash in your wallet). This means that they will accept work that is printed off doublesided, or on the backs of different work. You should always ask before you submit your essay, however. Whatever the prof wants is paramount. Also, if you are giving the prof work with stuff on the back, make sure that it is something you don’t mind your professor seeing! Some professors also permit electronic submissions, which will also save you paper and ink.
5. Shop around.
Sometimes you come across something that you absolutely must photocopy or print. Check out the area around the university for the cheapest printing and photocopying. It probably won’t be on campus, and it probably won’t be a big chain like Kinko’s. You’ll want to find a small photocopying place, and often you can get your copies for as cheap as 3 or 4 cents. Sometimes convenience stores even have well-priced photocopiers.
6. Think of subsidies.
Particularly if you are a graduate student, you might be able to print your work at school in the department for a greatly reduced rate, or even for free sometimes. Sometimes services on campus allow members cheap printing–places such as the Women’s Center or the International Student’s Committee. If you are considering joining, or if you are already a member, take advantage of what you can. The best way to find out about deals like this is to attend information fairs and to ask people who have been on campus for a few years.
7. Remember the costs.
Sometimes printing at home is cheaper. Sometimes printing at school is cheaper. And generally photocopying is cheaper than printing. Often you will have a choice of what way to get your material printed, so choose the best one. And remember: you don’t have to always print on white paper. Plain lined paper (even the cheap stuff) prints fine on a computer as well.
You can save yourself money, and feel good about saving the environment by saving paper. It’s just one way to minimize the costs of your already expensive education.
Why a Good Bartender Has the Skills to Be a Good Real Estate Agent
Some people do begin their real estate careers right after high school or college, but most come to real estate after doing something else. Some have retired, and other are just looking for a change of pace.
When writing agent bios I always look at those past careers to see how they can tie in to real estate sales. Often past experiences can reinforce the skills that the agent wants to emphasize.
Some past careers make for a tougher transition than others. For instance, school teachers have to teach themselves listening skills after years of being the one doing the talking. On the other hand, a good school teacher has the skills to educate buyers and sellers about the reality of today’s market.
That’s one skill that a bartender might not have, but I think good bartenders possess the majority of skills needed for a successful career in real estate.
My definition of a good bartender is one who has a following – a person who is a “draw” for the establishment where they work. They can mix a good drink, but it’s their people skills that turn occasional customers into “regulars.”
So what skills do bartenders possess that would make them be good real estate agents?
A good bartender knows how to listen. Just think of the time they spend listening to their customers. And while they may not have to listen wholeheartedly to everyone, they need to pay close attention to their regulars. Just as good real estate agents need to pay close attention to their buyers and sellers.
And then they’d better have a good memory. Not only does he (or she, of course!) need to remember what each person at the bar wants when they hold up a finger for another drink, he needs to remember what to set down in front of a regular when they walk in. And then, he needs to remember what that person does for a living, the names of their children, etc. Agents need to remember the personal information along with their clients’ wants and needs.
A good bartender respects what the customer wants – he doesn’t try to suggest that something else might do. As an agent, he probably won’t show someone a home on a busy street if they’ve specified wanting to live on a quiet cul-de-sac.
A good bartender can talk to people from all walks of life and treat them equally. He must be non-judgmental and friendly, in all but the most extreme cases. And when faced with those extreme cases he has to think and act quickly without getting flustered. Good practice for dealing with the surprises buyers and sellers sometimes spring on an agent.
A good bartender knows how to keep confidential information. Good bartenders can’t be gossips. Can you imagine how fast they’d lose their following if they started mentioning that Mr. Smith came in for a drink with Miss Jones, or if they mentioned that a salesperson from X company was involved in a long conversation with the owner of Z company? In real estate, keeping client information confidential is a must.
A good bartender has to have people-management skills. He needs to be able to say “You’ve had enough” without turning a customer into an enemy. That takes a bit of finesse! This skill could translate well into the finesse that’s needed when clients ask an agent to do things that go against regulations.
So – if you’re a bartender and thinking of a change, consider real estate. You have the skills!