Many investors think of property management as something to hand off once they’ve purchased a rental property. But as Derek Morton, founder and owner-broker of Netgain Property Management, explains in this episode of Zen and the Art of Real Estate Investing, effective property management is far more than rent collection. It’s about systems, preparation, and people.
Balancing Owners and Tenants
Derek launched his company in 2016 to balance owner expectations with tenant needs. Over the years, he’s seen how misunderstandings and a lack of preparation can derail both landlords and tenants. That’s why his approach focuses on setting expectations early, educating owners, and building systems that make day-to-day operations smoother.
The Role of Technology
A key part of Derek’s strategy is technology. He uses platforms for maintenance, financial reporting, and communication, reducing repetitive tasks and allowing his team to focus on meaningful conversations when problems arise. As Derek puts it, automation helps his staff “people better” when human connection is needed most.
Preparing for the Unexpected
Derek also highlights the importance of financial preparation. Unexpected repairs and tenant hardships are part of rental ownership, and without reserves, landlords find themselves caught off guard. To address this, Derek redesigned his onboarding process to include a welcome box and owner’s manual, outlining everything from payment schedules to software access. Annual reviews give landlords a chance to evaluate whether their property still fits their long-term goals.
The Future of Rental Payments
Looking forward, Derek sees rental payments evolving to reflect how tenants manage their finances. Flexible or weekly payment options, alongside security deposit alternatives, are gaining traction. These changes can reduce stress for tenants and provide more consistency for landlords.
Smarter Management, Stronger Returns
For investors, Derek’s perspective is a reminder that property management isn’t a back-office detail. It’s a frontline responsibility that directly affects returns. By embracing systems, preparation, and stronger communication, landlords can turn property management into a source of long-term net gains.
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