Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago on . Most recent reply

User Stats

2,709
Posts
6,006
Votes
Scott Trench
  • President of BiggerPockets
  • Denver, CO
6,006
Votes |
2,709
Posts

No, You Don't Need a Property Manager if You House-Hack

Scott Trench
  • President of BiggerPockets
  • Denver, CO
Posted

I was thinking about this the other day, and I got a question from a user about using a property manager to manage my house-hacked duplex.

It's my opinion that it would be quite silly to use a property manager as a house-hacker. Here's why:

First, most of the difficulty in managing a property comes from running it like a household. Landscaping, minor repairs, shoveling snow and fixing all the other little problems that come up as being a homeowner account for the vast majority of expenses and time commitments of house-hacking. Managing the tenants just isn't a huge added time commitment or expense on top of maintaining the entire property.

Second, unless you are a real pro (in which case, you are probably beyond needing to house-hack), it will be pretty darn difficult to hide that you are the owner of the property as you'll show an obvious interest in the maintenance and correct treatment of your home. Once the tenants realize that you are the decision maker, you will be contacted regardless.You will be disappointed if your goal in hiring a property manager is to avoid making decisions regarding the tenants.

Third, the economics of being your own property manager are incredibly in your favor as a house-hacker. Oh, the lawn needs some weeding? No problem, just do that after work. Oh, there's snow on the ground? No problem, just do it when you wake up. Oh, there's a leak under the tenant's sink? No problem, just call the plumber. Those economics are terrible for a property manager who will have to spend time commuting to your property, calling the right people to do the work, or do it him/herself, and will bill you for the entire operation. These economics are even more obvious in things like collecting rent (which can be done online at $0 transaction cost nowadays), showing the place, and making sure the tenants are treating the place right.

Anyways, I just want to throw this out there that if you are going to bother to house-hack and don't want to do the perhaps 5 hours of work per year that go along with managing the property yourself, you've probably missed the point..

You really don't need a property manager if you are house-hacking.

Most Popular Reply

User Stats

788
Posts
640
Votes
Rocky V.
  • Flipper/Rehabber
  • Arlington, TX
640
Votes |
788
Posts
Rocky V.
  • Flipper/Rehabber
  • Arlington, TX
Replied

@Scott Trench  You are correct but how would you like to evict your neighbor?  I would definitely still treat it like a business and make sure to follow appropriate procedures for finding tenants.  I would prefer to have the property in the name of a business or trust and you are merely acting as the PM as far as the tenants are concerned. 

I have several rentals and the tenants know me as the maintenance guy and my wife as the brutal PM.  I think the less they know the better. 

Loading replies...