How many units did you own before hiring a Propert Manager?

[Katrina P.]

Hi Everyone,

I'm excited because my business is really beginning to boom, as I've experienced tremendous growth in a short amount of time.  Because of an 8-unit I'm about to purchase (I'll post the details after it's done), I will reach my original goal for 2016 in April.  I know, time to think bigger!  Anyways, while I am excited about my growth and potential, I am, admittedly, beginning to feel a bit overwhelmed.  I own everything on my own and manage everything myself; and I work a full-time job.  I lost my husband (and partner) late 2014, so I am also single mom (with the help of MY mom), now without a partner.  So it's a lot.  My question to you all, is how many units did you own before you either hired a PM or an employee, essentially starting your own PM company?  

Thanks everyone!

Katrina

[Levi T.]

Property managers are hardly worth their value with today's technology. They will normally charge 8%-10% of rents each month. Some love to use the $100 a unit model, rents or no rents. They then get 50%-100% first months rent on new leases, and $200 or 50% of one months rent on renewals. They also set a budget of $100-$300 for repairs without calling you, after that they defer everything to you, everything.

I've used manages off and on over the years in many cities, most ran the operation into the ground, or lined their pocket with fees from the tenant. I've done the math over and over, they are getting 13%-20% in most cases with all the fees they pickup off you, or the tenants.

Another option is to use something like Appfolio, and a call center (they offer this as well), then enforce online payments, and using the call center for all repair request. After that you auto route request to vendors to contact the tenant to schedule a repair. You will work just as much as you did with a manager, at 40% discount of what it cost you before.

Most managers are doing the above most likely already with software and call centers so they can focus on real estate sales, or signing new leases as that's the big money makers after fees. It's around $400mo for 200 or less units on Appfolio with the call center, otherwise it's just $200.

To show units; pay an agent just to put a tenant in for you, nothing more. Permanently leave a lockbox on the front door. Easy peasy!

Best,