Property Management in Large Multifamily (40-100 units)

[Seo Hui Han]

I've been going through "The Multifamily Millionaire:  Volume 2" and in Chapter 13, they talk about property management ranging from 4-6%, on top of on site management that is on the owner's payroll, separate from property management, and that you should budget about 1 staff member for every 40 units.

If you (the owner) are already paying a property management firm, why do you have to have on-site management separate from the PM?  What does the PM do, and what does your on site management do?  Unfortunately, this was not clear in the book, which is unfortunate, since otherwise it is a very good and detailed read.