do you manage your own properties?

[Lynn Z]

How many of you use a property manager to manage your properties vs. managing your properties yourselves.

[Richard F.]

Jeez, do you guys really think ALL property managers operate the same? If so, you would be wrong.

Let's put the shoe on the other foot... as a PM, I will state that, in my experience, 50% of "investors" should never have gotten into the business of REI. Over the years, at least 40% of my clients came to us with run down properties and numerous tenant problems solely as a result of the investor's poor hand's on management and actions (or lack thereof). They were clueless as to LL/tenant laws, maintenance issues, and simply did not have the most basic knowledge or skills necessary. More than one of these types of investors went into bankruptcy as a direct result of their errors.

Easily another 40% bought their properties without consultation with the PM, and as a result were disappointed with returns due to unexpected expenses and true market rents. Over time, most of these clients end up ok with the appreciation, but better planning initially would have allowed a better bargaining position on the purchase, or a different property altogether.

The remainder of client's have been savvy investors that worked closely with our sales staff on purchases and built a nice, solid, portfolio. They actively strategize with the PM on purchases (with or without financial participation by the broker), capital improvements, and any significant issues. They understand the value that experienced professionals bring to the table, and they know what questions to ask. They also have a reasonable view of the Big Picture.

As with most professions, there are specialists for different aspects of the game. Do not assume that just because someone is a licensed real estate person, that they are capable of competently handling ALL types of real estate situations. This is no different from the fact that some investors only do flips, while others do lease-options, or buy and hold. These are different areas of focus, and while there IS some overlap for certain aspects of a transaction, an expert in one may not be expert in the other.

just my 2 cents...