When to Hire a Property Manager

[Blake Hrabal]

Hey BP. 

I'm curious, at what point in your investment journey did you get a property manager? How much do they typically get paid - salary or hourly?

Also lets say the investment journey started out the mud with $0. I have a lot of property management experience myself so I plan on managing my own properties, however, the goal is to build a team of awesome individuals who can support and elevate me to not have to manage all the properties once the portfolio grows; work on my business not in my business.

However, let's say you paid the property manager $20/hr for 40 hrs a week, that's 3200 a month...which means I'd need 8 properties cashflowing $400 each just to pay this person...then I lose out on all my cash flow haha, so obviously that's not the answer.  

I have a buddy who is a decent property manager and I think with my coaching & leadership he can be a great property manager and be on my team. But I would need to obviously pay the guy consistently so he can make his own living and help me build my company. 

I'm also thinking a property manager doesn't need to work a full 40/hrs per week unless you had 20+ units, but i'm not sure and looking for some insight and to hear some stories.

What did you guys do? 

[Collin Chan]

Hi Blake,

We currently manage our few properties as they are nearby and we have been lucky (due diligence) to find good renters.  Property management isn't full time for most people which is why they use Property management companies that charge typically 5-10% based of the rent on the unit (condo vs home, etc.).  This could be an easier and cheaper solution than hiring someone full time.

If you are just looking for someone to answer the phone and contact your list of contractors, I'd suggest looking into the "virtual assistants" that are featured heavily on Bigger Pockets podcasts as this seems to be a very cost effective way to manage the day to day without putting in much money.  There are also some software and Apps that do a lot to automate the management aspect as you continue to scale.

Collin