Long-Distance DIY Property Management?

[David B.]

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