Property management companies. Pros and Cons

[Javier Bustos]

Hey everyone,

Getting started in REI here. Haven't bought anything yet, still doing research. Can anyone give me the story on management companies? Should I use one or not? How do they make a profit from my (future)house?

Thanks,

JB

[Amber Gonion]

>>>>>After being a professional commercial / residential manager for the last decade, I have a very different opinion. 
Unless you are managing multi-family or have a portfolio of 10 or more houses, You can do it yourself and you’ll make more money. Property management isn’t rocket surgery. It is about relationships. 

A lot of new landlords immediately hire a property manager thinking it will be better, easier, safer, _________ fill in the blank. The problem is, a property manager will never have an “owner’s mentality.” I am not saying they won’t try their darndest and hold up their end of the contract. They are often overloaded with properties and problems and don't have the "time" to do much more than the bare minimum. But, as an owner, you will develop a relationship with your tenants and service providers. When you take care of that relationship, tenants renew, they take care of your home, they fulfill their obligations and leave on good terms. 
With all of the technology available today, self-management is easier than ever. If you have the time, knowledge and business acumen to be a real estate investor, you have what it takes to manage your investment. If you need help getting started let me know, good luck! <<<<

I disagree, owners managing properties themselves don't have the experience in the beginning, and open themselves up to fair housing violations and a host of problems.

Saying that an owner will always have more of an interest than a property manager is like saying you should represent yourself in court rather than use a lawyer.

Owners often are often emotionally attached to properties. They look at things short term not long term, pm see properties as businesses. Once you have a professional pm there should be no argument. The dollars and time you will lose learning to be a pm would be better spent acquiring more properties.

Too many diy shows in America, everybody is a pro. Pm's need to know their job, because there are a million legal aid lawyers out there helping tenants, an owner will find out quickly that mistakes cost money.