MB 070: How to Remotely Self-Manage Your Real Estate Portfolio

MB 070: How to Remotely Self-Manage Your Real Estate Portfolio – With Dana Dunford

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Financial Freedom with Real Estate Investing

MB 070: How to Remotely Self-Manage Your Real Estate Portfolio – With Dana Dunford

Show Notes

Real estate is no longer a local game, and smart apartment building investors have properties all over the country. The tricky part is finding a way to consolidate the data so that you can manage and analyze your portfolio all in one place. Is it possible to streamline the important property management processes when your investments are operated by different property managers using different software in different states? Today’s guest says, ‘Yes, you can,’ as she reveals how to remotely self-manage your real estate portfolio.

Dana Dunford is a real estate management specialist, licensed agent, and technology guru out of San Francisco. After earning her MBA from Harvard Business School in 2015, Dana co-founded Hemlane, a technology-enabled property management solution designed to support real estate investors in the remote management of their rentals. As CEO of the company, Dana understands that the best investments may not be in your backyard, and she is on a mission to provide investors with a single platform that consolidates and manages properties using intelligent software, virtual maintenance coordinators and local support.

Dana’s impressive resume includes positions at Apple, where she was a part of the worldwide financial planning and analysis team, and tech startup Nest, which was acquired by Google for $3.2 billion in 2014. Today she shares her expertise with the Apartment Building Investing audience, discussing the role of a property manager and the pros and cons of self-management. She covers the metrics you should be tracking as an owner, the benefits of property management software, and the processes that should be centralized across your portfolio. If you have between two and fifty properties, this is a must-listen interview that uncovers the tools available to help you remotely manage your investments.

Key Takeaways

[3:25] The costliest expense in the property management space

Bad tenants
Turnover costs
Eviction expenses
Vacancy during inopportune months

[4:39] How to avoid the expenses associated with turnover

Advertise early and often (good tenants look 30 days out)
Advertise on as many sites as possible
Respond quickly, schedule showings asap
Screen thoroughly via comprehensive background/credit checks on every applicant (not just primary)

[6:28] The pros and cons of self-management vs. hiring a property manager

Makes financial sense to hire property manager for class C and D properties
Consider self-management in case of class A properties
Good idea to have licensed professional you trust ‘on the ground’
Maintain a sense of control by having access to financials, business records

[8:23] The role of a property manager

First to blame, last to get credit
Must be jack of all trades (finance/accounting, maintenance/repair, salesperson)

[10:17] Dana’s guidance around making property managers ‘offensive players’

Open communication, transparency in decision-making
Establish owner’s criteria for approving tenants
Collaborative partner when problems arise

[11:41] Dana’s advice about interacting with your property manager

Frequently in beginning to establish expectations, any time issues arise
Weekly call if oversee more than 200 units
Email weekly summary (# of tenant applications, leads)

[13:18] The benefits of property management software

Provides owner with real-time insight
Long-term savings offset $30 monthly investment

[14:28] The metrics owners should be tracking

Income statement is crucial (profit/loss, expenses, ROI)
Should be able to answer general questions about portfolio
Reasons for vacancies
Tenant risk mitigation (Following policies? Inspection reports?)
Financial risk (Autopay? Late payments? Late fees?)
May shift based on need (maintenance, marketing)

[16:17] The processes an owner should prioritize

Tenant selection
Legal contracts
Maintenance management

[17:39] How to incentivize tenants to pay on time

Daily late fees
Require payment of late fees before rent
Report late payments to credit bureau
Check state/county laws

[19:34] The processes Dana recommends centralizing across your portfolio

Marketing
Application
Financials, bookkeeping
Maintenance tracking

[21:15] How to consolidate your records

Newer software allows for integration (email support team with questions)
Export all data to single platform (e.g.: QuickBooks, SmartMove, Excel)
Enlist help of VA only after processes in place

[24:45] The free tools Dana recommends for managing your portfolio

Trello (project management)
Slack (team communication)
Google Sheets
Dedicated email, phone number and business bank account

[25:59] The fundamentals of Hemlane software

‘Best investments not in backyard’
Add any property to platform
Consolidates data for entire portfolio
Streamlines property marketing, applicant screening, lease tracking, rent/payments and maintenance