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Updated over 3 years ago,
Vertically integrated property management vs third party
Hi all, looking for some advice as I try to get started out. I am looking to start a rental property portfolio, and I would ideally like my investment to be as "hands off" as possible, while still having agressive growth and expansion over the years. As I research turnkey companies, how property management is handled isn't always super clear.
It seems there are two obvious solutions: the turnkey company provides property management as part of their services, or you will have to find a third party to manage your properties. Considering my strong desire for a "hands off" approach, having the property management integrated directly into the turnkey company sounds great. I had a call with a company and the representative had an odd attitude towards this, dismissing it and saying something along the lines of "well we don't do that because it's your investment and you need to learn to do that yourself." I'm assuming that this flippant attitude was due to the fact that they simply didn't offer that service and wanted to justify it somehow.
How common is it to find turnkey providers that also will manage the properties, and are there any notable downsides? I would like to grow a portfolio to a substantial size eventually, possibly even in multiple markets, and dealing with multiple property managers would make this increasingly less "passive." Does anyone have experience with a large portfolio in multiple markets, all purchased and managed through a single turnkey company? I'd love to hear about your experiences and any advice you all may have for me!
Thanks!