Property Manager, are they really needed?

Question

So, for years I have been an advocate for PM until recently. What does the PM do? Collect rent, schedule repairs, place eviction notices ect, just really moving around paperwork oh and show the place for a new tenant. Well why not just have the rent go directly to the owner, and if sec 8 well the owner gets paid 1st-5th like clockwork without having to chase the PM. The tenants call the " Maintenance Coordinator dfro any issues. The owner is still not bothered with issues and is still hands off. If a notice needs to given to the tenant well that's simple. Anyone can put a note on a door, take a picture and send to the attorney. Why pay 8-10% of your rent? Well, a MC can do all this for 5% therefore cutting that expense in half.

So far, it's working very well, who knows maybe I just created a new term. Just like wholesaler, back in the day it was called flipping a contract.

What are your thoughts?

So far, it's working very well, who knows maybe I just created a new term. Just like wholesaler, back in the day it was called flipping a contract.

What are your thoughts?

Bob S. · Answer

Many try and get crushed. I see it all the time. It's all about your team.

Michael Smythe · Answer

@Bob Stevens many are already DIY landlording doing exactly this.

Bob S. · Answer

Simple to run background checks. Heck you can even have the showing agent do it for you. Also, the MC can drive by and "check things out" It's not rocket science. The owner is receiving the rent directly, so they keep their own records, most like to do that anyway. Also, if you are doing mostly Sec 8 or other govt program, well that makes it even easier to track the income. I have let's just say one or two doors there, I do not use a PM,( anymore) my guys " keep an eye on it for me " and take care whatever needs to be taken care of,

All the best

Michael Rosen · Answer

I disagree completely ... who is going to screen the tenant and do the searches of criminal records and/or eviction or rental records of bad actors that have lost their rentals due to non payment or giving the owner problems .. A maint coordinator for 5% is the least that a Property Manager does .. for more than 1/2 of the rates ... the PM gives monthly reports on the property and inspects the property and does drive bys to see that it is being maintained. They also do all of the leg work in getting a new C of O and coordinating all of the inspections for the property as well from Fire/Smoke to Safety issues. for a savings of 3% an owner is giving up a lot of time and effort!!

Property Manager, are they really needed?

4 Replies