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Updated almost 10 years ago on . Most recent reply
What do we gain by managing our own rental properties?
I've listened to many of the podcasts on this site. Many recommend that a buy and hold investor should start by managing his/her own properties. I was wondering if anyone could tell me what they have gained by managing their own properties? If you work a full time job and are being charged a reasonable fee it seems like you would be better off letting someone else handle the land lording aspect of your business. Right now I am viewing the time and headaches saved by hiring a property manager as being more valuable than the extra income gained. Any opinions will be appreciated.
Most Popular Reply
CONTROL is SO OVER RATED!! While I agree it would be good to manage your first few rentals so you know what to expect from a PM, a good PM can do BETTER, a LOT BETTER, at screening tenants, getting good prices and quality on repairs than any individual investor on BP! If you want to manage your own properties, thats GREAT. You can save the 7-10% month management FEE. But you will NEVER convince me that you can screen a tenant better than a PM company that has over 5,000 SFR's under management and runs HUNDREDS of Tenant Applications PER MONTH!
When an investor says they CARE more about a house than a PM, that is actually a LIABILITY, not an ASSET. If an investor "cares" about a house, that means he/she has an EMOTIONAL attachment and thus can be clouded when it comes to making decisions.
A successful Real Estate Investor will be DETACHED from the house, DETACHED from the tenant and DETACHED from CONTROL. The ONLY concern should be the continued success of the BUSINESS. It's growth, it's reputation, it's success and it's stability.
If my wife and I are killed in a car crash tomorrow, all our rents will continue to be deposited into our bank account monthly, our business will continue to run just as it does today and it did yesterday. We have trained our children on the importance of growing the business and we know they will do a great job. Now that is a legacy to pass on!