What’s Your Hourly Rate as a Landlord?
What’s Your Hourly Rate as a Landlord?
As a landlord, you could be many things. You could either be a full-time landlord with multiple cash positive properties – no need to hold a day job – or a part-time landlord who holds a day job/business and manages their portfolio of a few rental properties.
The idea that Time is Money is something we all adhere to, and it leads us to put a monetary value to our time. Whether you own a business, draw a fixed salary or an hourly wage, deep down, we all understand that time is proportional to money. This direct proportionality is known as a personal hourly rate.
Through this post, I want you to reflect on your hourly rate for a second. The purpose here is to assist you in figuring out: How much your time is worth as a landlord?
Go through this quick (three easy steps) exercise to know what that rate is? (Don’t tell me, write it down)
Write down your hourly rate – a piece of cake!
My Hourly Rate is: _________
Great! Now let’s add context and add a time to each of the following:
|Property Tasks||Estimated Time Spent|
|Attending After-Hour Calls|
|Receive Rent on Their Behalf|
|Find Suitable Tenants|
|Dealing with Disputes|
|Sorting Any Issues at the End of a Tenancy|
|Doing Background Check/Credit Check|
|Estimated Total Time Spent on Your Property Investment Portfolio|
This is where things get interesting as you figure out exactly how much time you are spending on your portfolio. Once you have the time you spend as a landlord in the last column, you can multiply the total with your hourly rate and convert it into weekly, monthly, and yearly rates!
|Total time spent on your property investment portfolio (Hourly rate X estimated total time spent on your property investment portfolio)||Estimated Time Spent|
Understanding the Results
You now have a figure that tells you how much time and money you are leaving on the table by managing your portfolio. If this figure is more than $25/week, $109/month or $1300/year, then you need to hire Airpropty as your property manager in Auckland because we could help you save time, money, and energy. Period.
On the other hand, if this figure is less than our management fee, then congratulations – you are killing it as a landlord by working your magic!!
But wait! It isn’t as simple as it seems!
Being a landlord is one aspect of your life. Several other factors need to be incorporated into the equation. All the other elements – that can’t be ignored are further divided into two levels.
You need to ask yourself the following questions to make sure you don’t end up creating work and personal life imbalance.
|Do you have kids? If yes, how much quality time you give them each week?||______|
|Is managing your property hindering you from spending quality time with your family?||Yes/No|
|Do you think it’s worth outsourcing your property management hassles for $25/week while you give more time to your family?||Yes/No|
If the answer to any of these questions is yes, you need to hire a property manager who understands the dynamics of a well-balanced work and family life. This is where we come in! Work with Airpropty because we’ll help you spend more time with your family by managing your property for you. After getting us on board, you will instantly realize the benefits of having a property manager.
Let’s add another level of factors that you need to consider while managing your property.
|Are you in a job or a business where you are in your growth phase?||Yes/No|
|Do you think it’s worth outsourcing your property management hassles to an expert for $25/week while you devote more time your career and business growth?||Yes/No|
What we focus on, grows!
Our career and our business grow when we give it a 110% effort!
If your answer to the questions mentioned above is yes (O.MG. We’re a perfect match!!) you need to call us on 09 390 8890 right away and hire Airpropty as your property manager since we can help you grow and look after your investment property while you focus on building your career and business.
PS: If you are going out of the country for more than three weeks, you’ll be needing a property manager in Auckland. Call us now on 09 390 8890, and we will help you!
PSS: Let us cater to your property management needs and help you streamline your business strategies by taking care of the tenancy agreement, suggesting the letting fee, and handling other landlord issues for you!