Managing a residential real estate portfolio comes with a lot of risks. Unpredictable cash flows stemming from factors such as vacancy and tenant non-payment can seriously affect the income of residential real estate owners, especially if those incomes are tied to multiple mortgage payments. If these risks can be mitigated, investing in multiple residential properties becomes an even more appealing option.

This is where Doorstead comes in. Doorstead is one of the only property managers in the nation to guarantee your rental income before we find a tenant. 

This means that Doorstead will pay you regardless of whether there is a tenant or not.

Doorstead offers two key benefits for property investors. First, it provides steady cash flow.

Second, it guarantees a minimum rental income for each property you consider buying.

This means when you invest in multiple properties through Doorstead, you'll know the lowest amount of rental income you can expect to receive, even before making a purchase. Something like this has never existed before. 

If you are interested in building a new residential rental to add to your portfolio, here’s how Doorstead can help:

Doorstead’s Value 

Owners of residential portfolios are largely concerned with three issues that affect their property income. Here’s how Doorstead can help you in each of these areas.

1. Doorstead Solves Unpredictable Cash Flows

If you are an owner with loan payments tied to your properties, then having an unpredictable cashflow can be a big problem. Slow leasing times cause long periods of vacancy that reduce the annualized effective rent of your property.

If a tenant stops paying rent and becomes a squatter, now you have to worry about non-payments and potentially evictions which can cost tens of thousands of dollars in expenses.

Not to mention, If the rental market is weak  and renters are generally moving out of the area, then all of these issues are further exacerbated.

Doorstead can provide owners with stable cash flows in three ways:

1. Our Guaranteed rent program provides owners with what is essentially cash flow insurance. After a period of approximately a month, if we do not secure you a tenant, we will pay you a monthly rent amount. This means that no matter what, you will have rent coming in in a month, tenant, or no tenant.
2. Doorstead provides industry-leading leasing times. Our average time to find a tenant in the past 12 months was less than one month, compared to a national average of 6 weeks among other property managers.
3. Our thorough tenant screening process. In the past 12 months, we have had  rent delinquencies on only 2% of our rental properties. This is due to our meticulous screening process which ensures that your applicants meet stringent income requirements and are not fraudulent in any way.

2. Doorstead Safeguards against Tenant Turnover

Losing a tenant at the end of the lease is a particularly tricky time for portfolio owners, especially when the rental income from the properties are paying for mortgages. Losing a tenant at the end of their lease causes:

1. Vacancy while a new tenant is secured (this could be 6 weeks with other managers)
2. Capital costs while preparing the property for turnover (painting, repairs etc…)
3. Additional tenant placement fees paid to the property manager

Thus, it is in the best interest of the owner to have tenants sign new leases after the first twelve months. In the best case scenario, the tenant stays in the property and also pays slightly higher rent than in the previous year.

Doorstead has a stellar track record in doing both of these things:

1. On average we keep 95% of our tenants after the initial 12 month lease expires
2. On average we secure over a 5% increase in rental rate for tenants that renew

For an owner with a property that averages a monthly rental rate of $4,000, this could save you:

A. 1 month of vacancy: $4,000
B. 50% tenant placement fee: $2,000

For a portfolio owner with say three newly vacant properties each year, this can save you $18,000 per year in additional costs, the equivalent of a $500 rent increase for each property. And, in the event that there is a tenant turnover, then your property can re-qualify for  our minimum guarantee.

3. Doorstead Offers Lower Fees

Most residential property managers do not have any kind of discounts or loyalty savings for owners with 3 or more properties. However, Doorstead is one of the first in the nation to offer this. 

The average property management fee for a residential unit in the US is 8%.

Doorstead charges the same fee for clients with less than three properties. However, we know the amount of trust a portfolio owner places in us by paying us to manage a large chunk of their assets.

To provide you with savings we will provide discounts for owners who place 3 or more properties with us.

How Doorstead can provide unparalleled security for your portfolio 

The power of combining the Doorstead Minimum Guarantee program with the management fee discount for portfolio owners makes a powerful difference to the cashflow for owners with a rental portfolio.

Let’s say that there are two owners of a residential portfolio: one owns 3 properties, and the other owns five properties, each with $4,000 of assessed monthly rent per unit.

The Doorstead minimum guarantee insures for a maximum of one month of vacancy. With other property managers this could be up to 6 weeks before rental payments come in.

This results in $6,000 in annual savings from Doorstead’s minimum guarantee program for an owner with 3 properties.

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And $10,000 in annual savings for an owner with 5 properties. 

In this example, the Doorstead’s fee discount program translated to the owner with 3 units paying a 6% fee compared to the industry average 8% fee. This resulted in $2,880 in recurring annual savings for an owner with 3 properties.

In another example, the Doorstead’s fee discount program translated to the owner with 5 units paying a 5% fee compared to the industry average 8% fee, a $7,200 in recurring annual savings for an owner with 5 properties.

When we add up both the savings from the minimum guarantee and the management fee discount, an owner with 3 properties saves nearly $9,000 per year and an owner with 5 properties saves more than $17,000 per year. 

This is before factoring how Doorstead has a stellar track rate of incurring limited to no turnover vacancy or tenant defaults, which means these savings could potentially be much higher as well.

Doorstead: A first of a kind management solution for your portfolio

Doorstead revolutionizes residential portfolio management by addressing the key concerns of property owners: unpredictable cash flow, tenant turnover, and high management fees. 

Our unique guaranteed rent program, industry-leading leasing times, and exceptional tenant retention rate provide unparalleled security for your investments.

With potential annual savings of up to $9,000 for three properties and over $17,000 for five properties, Doorstead offers a game-changing solution for portfolio owners.

These savings, combined with our personalized approach and deep market analysis, make Doorstead the ideal partner to maximize your real estate investments. 

Don't let unpredictability eat into your profits any longer. Take control of your portfolio's performance today - submit your properties for a custom analysis and discover how Doorstead can transform your real estate investment strategy.

Tenant Placement: Doorstead's Solution for DIY Landlords

Doorstead's tenant placement services address a common predicament faced by many landlords. 

While property owners often have well-established systems for managing their current tenants, they frequently encounter difficulties when it comes to attracting and securing new, high-quality renters.

This challenge can be particularly daunting for DIY landlords who handle property management tasks independently. 

Recognizing this gap in the rental market, Doorstead has developed a specialized service designed to streamline and simplify the process of finding reliable tenants, providing a much-needed solution for property owners seeking to maintain a steady stream of qualified occupants.

Our placement only service handles the most time-consuming and critical aspects of the rental process:

1. Property Listing: We create compelling listings to attract potential tenants.
2. Home Showings: Our licensed real estate agents conduct professional property tours.
3. Tenant Vetting: Applicants undergo our rigorous screening process to ensure the highest quality matches.
4. Leasing Paperwork: We manage all necessary documentation to finalize the rental agreement.

Once the lease is signed and the deposit is paid, we seamlessly hand over management responsibilities to the landlord, allowing them to maintain their preferred level of involvement.

This service complements our full-service property management offering, providing flexibility for landlords who want expert assistance in finding tenants while retaining day-to-day management control.

If you are interested to get a precise quote on how much you’ll save by renting your portfolio through Doorstead, please contact us at: partnerships@doorstead.com