Is it a good idea to self manage when unable to find a good property manager?

Question

Hi BP community.

When I owned around 10 units I managed them myself, and I think I did it efficiently. Then as I acquired more units I hired a property manager. As you probably know, most managers will not manage as good as the owner. For example, I would find a qualified tenant faster, I would not let’s a tenant fall behind in wait until they owe $3K in rent to start the eviction process, or I would respond to maintenance calls faster etc. (Tenants complaining nobody answers the phone when they call or take to long to get back to them).
Now that I own around 100 units and bringing a million a year in rents, I wonder if hiring a full time employee to help me manage my own units would be a good or bad idea.

The rational is since I am paying around $70K a year I management commission, I could hire a small team to help me manage my units more efficiently.

Has anyone done this? Is it a good or bad idea? I know it will take more of my time until I fully train my assistant to solve 80% of the problems. Should I find ways to help my manager be more efficient instead?
what would you do in this case.

Thank you in advance!

Abad Marroquin · Answer

I used apartments.com when I self managed my Firts units. I have heard a number of other websites that promise to be the best. What else have other investors used?

Abad Marroquin · Answer

I have considered Hiring a VA, but I have not done that yet. Do you guys recommend any good platform/website where I could go and hire one? Thanks in advance!!!

Julie Chai · Answer

I just started using Innago.com to self manage my out of state fourplex.  They can do all the background checks, screening, and lease agreements (if needed), communicate with tenants, tenants can ask for maintenance work on there, etc.  The only thing is, you still need boots on the ground for maintenance repairs.  Check it out Innago.com.  It's free for owners.

But if you're planning to scale more in the future, you can hire someone and they can use this app to manage your units while you're out searching for more deals.

Michael Smythe · Answer

It can be done if you know what you are doing.

Of course, you can also just be trading the savings for more headaches managing people.

Tracy Streich · Answer

@Abad Marroquin  Maybe you just had a manager with bad systems.   I would interview a few other property managers before making the decision.  At 100 you cannot do it all by yourself.   As you are finding out what you are currently doing it is not scaleable as a one man show.   If you cannot find someone maybe consider hiring a VA to do some of the paperwork.  This is likely less expensive than what you are doing now.   They can do background checks and vet tenants and assign work orders to your vendors.   Then you just focus on what you actually need for boots on the ground.   Best of Luck

Charles Carillo · Answer

@Abad Marroquin

How many property managers have you tried using?

Yes, people do set up their own management company for their own properties. The main people you are hiring are; a handyman/handymen, office admin/bookkeeper, and a manager who oversees everything. For 100 units, you probably do not need a full-time leasing agent, you could contract with a local real estate agent to perform your showings. The office admin/bookkeeper and manager might not need to be full-time either. The handyman/handymen will most likely be full-time for 100 units (if they are handling make-ready as well).