.webp)
Owning and managing rental properties can be one of the most rewarding ways to build wealth, but it also comes with unique challenges. For real estate investors, whether you're just starting with a few properties or managing a portfolio of hundreds, getting the fundamentals right can make all the difference. One of the most critical aspects of real estate investment is tenant screening, which sets the foundation for the overall success of your investment.
From new investors trying to save costs by doing everything themselves to seasoned property managers juggling complex portfolios, the process can be both exciting and stressful. In this guide, we'll dive deep into the key strategies and lessons learned from experienced property manager Aaron Bubenheim, as well as how you can generate motivated seller leads to grow your real estate business.
Starting Out in Property Management: Lessons from Experience
For many real estate investors, property management might not seem like the most glamorous part of the business. Yet, it is crucial for the long-term success of any real estate portfolio. Aaron Bubenheim, who has years of experience managing over 2,000 properties, offers insights into how he got started and why property management became his area of expertise.
Before entering real estate, Aaron worked as a mortgage loan officer, where he realized he needed a career change. His first taste of property management came from a job he "stumbled upon" at a Pittsburgh-based management company. As he learned the ropes, it became clear that property management wasn't just about handling day-to-day issues—it was about problem-solving, building relationships, and managing people. After a year and a half, he went on to co-found his own property management company.
His journey from managing a single rental property to leading a company with over 2,000 properties under management highlights the importance of building systems, maintaining strong communication, and staying ahead of potential issues.
The Importance of Tenant Screening
One of the cornerstones of property management is tenant screening. For Aaron, this process is the key to long-term success. Investors who fail to screen their tenants thoroughly may find themselves dealing with unpaid rent, property damage, or even legal issues down the road. By ensuring you have the right tenant, the likelihood of these problems decreases drastically.
So, what are the red flags to look for when screening tenants? According to Aaron, some warning signs include:
- Inconsistent Communication: If potential tenants fail to confirm appointments or are vague in their responses, it could be a sign that they might not be reliable in paying rent on time.
- Rushing to Move In: Tenants who are eager to move in immediately, especially offering to pay several months of rent upfront, should raise some concerns. This could indicate they are being evicted from their previous rental.
- Bad Attitude Toward Rules: If a tenant reacts poorly to questions about their criminal record or financial history, it's a sign that they may not be taking responsibility for past mistakes.
Statistically speaking, consistent tenant screening practices—including background checks, credit reports, and income verification—are vital to reducing risks. This process helps you select tenants who are more likely to pay rent on time and treat your property with care.
When to Consider Hiring a Property Manager
For new real estate investors, the question often arises: should you manage your properties yourself, or should you hire a property manager? While managing a property can save you money, it also requires time, effort, and a particular skill set. Property managers handle tasks such as tenant screening, property maintenance, and rent collection, freeing up time for investors to focus on growing their portfolio.
Aaron advises that while it's okay to manage your own properties at the beginning of your real estate journey, as your portfolio grows, it’s crucial to bring in a professional property management team. A general rule is that if your properties start to take up too much of your time or you’re missing out on other opportunities because you’re stuck managing day-to-day tasks, it’s time to outsource.
Screening Property Owners and Clients
Just as tenant screening is critical, selecting the right property owners or clients is equally important. Aaron recalls a time when he would assess potential clients by visiting their properties and pointing out issues that could impact tenant satisfaction. The way a property owner responded to these concerns helped him decide whether he wanted to work with them.
Property managers need to ensure that they aren’t taking on clients who are unwilling to address property maintenance issues, as it could lead to tenant dissatisfaction and, ultimately, problems with rent collection or property damage.
Core Processes to Master in Property Management
As Aaron’s property management business grew to over 2,000 properties, he had to build systems to ensure smooth operations. A key lesson learned was to establish clear guidelines about what services property managers would provide, both for tenants and property owners.
Clear communication from day one can prevent future misunderstandings. For example, property managers should define who is responsible for tasks like paying real estate taxes or handling specific repairs. Setting expectations early helps property managers and clients avoid confusion and maintain a healthy working relationship.
Building a Successful Real Estate Portfolio
For investors managing a real estate portfolio, the ultimate goal is to generate consistent income while avoiding unnecessary headaches. Whether you’re managing properties in high-end neighborhoods or lower-income areas, Aaron emphasizes that putting in the effort to make a property desirable is key. In fact, properties in lower-income neighborhoods often benefit from more substantial renovations, making it easier to attract reliable tenants.
And of course, retaining tenants is much easier when properties are well-maintained and appealing. This leads to fewer vacancies, reduced turnover, and more stable cash flow—key components of any successful real estate portfolio.
Build Your Real Estate Business with the Right Tools
Building a successful real estate business requires more than just acquiring properties; it requires managing them effectively to generate motivated seller leads and long-term financial success. By focusing on strong tenant screening practices, maintaining clear communication, and knowing when to hire a property manager, you can grow your real estate portfolio while minimizing risks.
If you’re serious about growing your real estate business and want to build relationship with motivated seller leads, now is the time to evaluate your property management strategy. Consider whether it’s time to outsource your property management tasks so you can focus on expanding your portfolio. Don’t wait—take the steps necessary to ensure your properties are managed with care, maximizing your investment potential.
