Long-Distance DIY Property Management?

Question

Sorry in advance for the long post. I've been educating myself quite a bit on the forums here, but I'm also looking for critique or approval of our plan, and suggestions. 
	
	We are shopping for a nice house in Florida (Treasure Coast) to rent out and possibly use in our retirement someday. We are up in the Northeast. 
	
	My initial plan was to have a property management company handle all the details of renting and maintaining it. But I'm finding that the cost (like other things in Florida) is higher than I expected. Most property management companies charge 15%, which wipes out most of the profit we hoped to earn on the rental. 
	
	I have heard all the reasons not to manage a property myself, but would like to hear from anyone supporting my plan. Here's why I think I could make it work:
	
	1. I'm comfortable with contracts, legal stuff, and business transactions.
	
	2. I have a good mechanical and construction knowledge. I am comfortable hiring contractors, and am pretty good at sizing them up as far as their abilities and integrity. I can speak their language, and understand the technical aspects of what they do.
	
	3. As far as dealing with tenants, I'm a pretty good judge of people, but also am empathetic to a tenant's needs. I believe I could strike a good balance between having a friendly business relationship while being able to make tough decisions like evicting someone.
	
	4. Today, with the internet, I assume a lot of the screening process for both tenants (credit and criminal check, etc.) and contractors (Angie's List, etc.) can be done long-distance, and easily. There also seems to be a wealth of knowledge and tools available on-line.
	
	5. We are planning to cater to a middle-class demographic, which we hope will avoid many of the lower-income issues.  
	
	I realize I still need a local person. I have an idea that I should be able to find an independent handyman to do real simple stuff- change the A.C. filter, turn off the water in an emergency, check the circuit box, give access to repair guys, etc. And also to be a set of eyes to check on both the tenants and contractors. Like a free-lance super, on an hourly basis. Especially in Florida, I picture there being a lot of these independent or semi-retired handymen around. Heck, if I was retired, I'd do this myself for people for a little extra cash.
	
	I'd establish relationships with contractors in advance for urgent repairs: plumber, A.C., appliances, maybe an electrician, maybe a hurricane-prep guy.
	
	For larger repairs, like tile or a roof or bath remodel, I would travel down to manage it. My work schedule is pretty flexible, and to fly down every now and then to hire a contractor or manage some project at the property is reasonable for me. I would probably also travel down to show the house to potential renters, and size them up personally.
	
	OK: Let's have constructive criticism, suggestions, as well as positive experiences from people who have done this. I appreciate any help! 
	
	Thanks,
	
	David

Michael Lauther · Answer

@David B.

My experience is predominantly with lower end single family rentals so I cant speak to renting a higher end property but your point about hiring a retired handy man will have several issuers. I have made contacts in the area where I have 5 properties 4 on one street. I have had good experience with one or two handymen however there really isn't enough work for them to keep interested. They are helpful but I doub your will be successful in the long run hiring them on an hourly basis. Perhaps a monthly fixed fee to be on call could work.

Jason Hartman · Answer

Some will disagree with me but I've had pretty good luck with long-distance self-management (DIY). There's an occasional pitfall but overall, I like it. Some of my properties have great managers and I'm keeping them so it's a case by case thing. I started another BP thread on this and will see if I can find it.

Sara Liskey · Answer

@David B., great topic for discussion. Thanks for posting. @Jason Hartman self manages many of his rental properties from afar and may have some good tips to share.

Judy C. · Answer

I think having a good local property manager is essential.  I have seen many investors try to manage from afar and the series of issues that arise.  It is a difficult job even when you are near the properties that you manage and have local knowledge & experience.

For example, we think we have an excellent handyman, but then after closer inspection we find that things are not as they seem.  We may find that their work is not satisfactory.   Or, we receive a bill for getting a property ready to put on the market including replacement of blinds but when we inspect the property, we find the blinds were not actually replaced.

Also, having someone else deal with your tenants makes it easier to enforce rules.  Most people tend to make exceptions that they later regret.

I could go on about nightmares that I have seen over the years, but instead I will just say, be careful and pay close attention if you go that way.   Based on the info you mentioned, I think you would have better luck than most!

Ronda R. · Answer

I find my repair people on line as Elizabeth does. I read reviews and then when I find someone I like I keep using them. I have the tenant call me with problems, I contact the tradesperson and give them the parameters, i.e." call me if it is going to be over $100.00 before you do the repairs." then have the tenant call them to make an appointment that will work for both of them. The repair person then bills me and I pay once the tenant has let me know it was taken care of to their satisfaction.

For walk through when checking tenants in and out, I was lucky enough to have a friend close by that would do it for me. I did all the tenant screening remotely and he would meet them, have them sign the contract and walk through checklist, hand over the keys and then mail them to me.

For key changes I would have a locksmith meet them to change the locks at  the time of the walkthrough.

Mark Whittlesey · Answer

No, not really. You work it out with your tradespeople if need be and charge your tenant service calls for frivolous complaints. And if you want, you can have the tenants call you first then you refer them to your tradesperson.

But the reality is this:

1) Most of the time you WILL be having a tradesperson go out to the property. I mean you did tenant screen, right? So you have good tenants.

2) The tenant and the tradesperson are ultimately going to have to get together on the phone. That is the only way they can make an appointment time that works for both of them. So you might as well just save yourself time and hassle and get them together as soon as you can.

Elizabeth Colegrove · Answer

My husband is active duty and we manage all of  our rentals from a far. We have higher end tenants who meet the repairman. I have found that I can google band find a good repair man just as well as the next person! I do not have anyone paid each money. Only a list for as things come up! So far I save 8k a year and have had no issues. I am sure there will be an issue at some point, but I have a lot of o shoot money saved up!

David B. · Answer

Good point, Mike. I think I have a general feel for this, but definitely will need to study the laws. This would be in Florida, so I'm hoping it might be a bit more landlord-friendly there than here in the northeast.

David

David B. · Answer

That sounds like a potential nightmare, essentially giving the tenant a blank check to call repair guys anytime they want, for any frivolous reason. I think I'd like to approve any repairs first.

David

Mike D'Arrigo · Answer

@David B.

The one big thing you didn't mention is whether you have knowledge of the landlord/tenancy laws and Fair Housing practices in your area. You don't want to run afoul of any of the local laws. It can be very expensive.

Long-Distance DIY Property Management?

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