“Our favorite holding period is forever” is a quote from Warren Buffet, who as of April 2024 had a net worth of $139 billion, making him the ninth-richest person in the world. Buffet firmly believes to build true long-term wealth, you must buy and hold real estate.
If you break that belief down into two simple parts, there is the acquisition of real estate and the management of real estate. To break it down a little further, there are two types of people making acquisitions. First, the institutional investors who purchase properties with the intention of generating profit or building equity to rent out the property. Second, the “accidental landlords”- individuals who might end up renting out a property due to life circumstances or market conditions, but whose initial goal was to create a home, not acquire an asset. This group can become a landlord for many different reasons, such as life circumstances or market conditions, but their original goal in purchasing the property was to create a home not acquire an asset. In our experience working with countless property owners, the accidental landlord with just one or two rental properties needs professional property management just as much, if not more than institutional investors. They can have a hard time viewing the property as an asset instead of their home which they may have sentimental feelings about. This is why engaging a reputable Philadelphia property management company can be crucial. It can help address friction throughout the management process—from determining rental rates to maintenance expectations and even lease renewal negotiations.
Most people would think to themselves “It’s only one property and I can do it myself, why do I need to pay anyone?” The reason you should hire a professional property management company in Philadelphia is because with one property you must make zero mistakes and need everything to go perfectly, and that might be just to break even! The margin of error is almost zero with one property. And for those of you thinking we are only referring to property owners carrying a mortgage, we are referring to property owners who own their property outright as well. The margin of error is so slim for one property with a 12-month lease in place.
This scenario is why institutional investors want to scale their business as quickly as possible. When was the last time you made zero mistakes and everything went exactly as planned? Mistakes or unexpected occurrences in real estate will result in negative cash flow, aka dipping into your disposable income just to maintain the asset. This is why it is of the utmost importance to hire a professional property management company in Philadelphia, especially if you own real estate in a major metropolitan area. If you’re seeking the best property management has to offer, the knowledge and relationships that experienced professionals have—such as the full-time city liaison we have on staff at OCF Realty—are priceless!
Now, let’s address why institutional investors should also hire a professional property management company. There’s a common saying, “If you want something done right, you need to do it yourself.” While this can be true in many cases, property management involves so many tasks that doing it all yourself isn’t always practical. The key reasons to outsource property management include saving time—since we all know that time is money—and benefiting from economies of scale. By leveraging the expertise of a professional property management company in Philadelphia, investors can streamline operations, reduce overhead costs, and focus on strategic growth rather than getting bogged down in day-to-day management tasks.
As a deal maker and investor, your time is not well spent worrying about clogged toilets or managing the people who fix them. Your focus should be on growing your portfolio, analyzing the big picture, and staying ahead of the market. Just as you wouldn’t expect the head of acquisitions at a Fortune 500 company to also be the director of operations, you shouldn’t expect yourself to handle property management tasks. The time and cost associated with managing staff and handling payroll could be better spent. This is where a top property management company in Philadelphia, like OCF Realty, comes into play.
By partnering with an expert property management company in Philadelphia, you gain the advantages of a large-scale operation without the overhead. With OCF Realty, you benefit from the efficiencies of managing a 3,000-unit portfolio, even if you only own 100 units. Enjoy the services of multiple full-time leasing agents who keep vacancies filled, use cutting-edge technology for real-time scheduling, and rely on experienced maintenance technicians working throughout Philadelphia. Additionally, you’ll have a full-time city liaison ensuring compliance with Philadelphia’s local regulations and a collections specialist to handle difficult rent collection calls. Plus, you’ll see significant savings on technology costs, as professional property management software can cost hundreds of dollars per month.
The biggest argument I hear is “You won’t manage our properties like we do because they aren’t yours, you don’t own them, we do” and you are absolutely right, in some cases, we can not make on-the-spot decisions. As your property manager, our job is to guide you in making informed decisions and to support you in maintaining your investment, aka your property. But we believe the savings from the other benefits will outweigh any issues that may arise because of the decision-making process.
While we ultimately work for you, as you have hired us to perform property management services, at OCF Realty we view it as working with you to maintain the best possible performing assets.
Hiring a professional property manager is a strategic way to mitigate risks associated with real estate investment. Just as people hire financial advisors or stock brokers to navigate the complexities of the stock market, investing in our property management company in Philadelphia is a smart move for protecting your real estate assets. We rely on professionals in nearly every aspect of our lives—accountants, teachers, doctors, lawyers, and even car washers. Yet, when it comes to managing one of the largest assets most of us will ever purchase, many try to go it alone. By enlisting OCF Realty’s property management services, you gain access to expert knowledge, streamlined operations, and comprehensive support, ensuring your investment is managed efficiently and effectively. Don’t leave your real estate success to chance—choose our top-tier property management company and safeguard your investment with professional expertise.