Property management is too expensive

[Jon Klaus]

I have not outsourced my property management, but in listening to the experiences of others, I know of very few very few investors who are satisfied with the quality and value they are receiving.

On the other hand, many investors don't have the time or inclination to manage their properties themselves.

Isn't there a middle ground?

Hire and train your own property manager who works for you. Pay her/him as an employee or contractor and set up the relationship to align your interests. Pay them for their time, and not a PM company's overhead, profit, and marked up third party services. Define your own level of quality and service with your new assistant. Mentor and grow that person into a possible partner in the future.

Anyone doing this? What have you learned?

[Rich Weese]

As one of the more experienced landlords on here, I've come to believe the following. 99.9% of the property managers absolutely SUCK!! They're lazy, undermanned, and only open certain hours. They don't have much inititive.
To you, the owner, a vacancy means $800, and you might have a mortgage to pay. To the mgmt company, it means 80 bucks, and he has enuff money coming in, it doesn't matter to him. Here are some other problems.
1. No one will EVER take as good care of your money as you.
2. You'll go out on a moments notice to show a vacancy, while the mgmt company will say"come in and pick up a key".
3.They may have properties of their own to compete with yours.
4.Their motivation is much lower level than yours.

Here is another problem with some of the ideas above. In some state, you must have a real estate licensee for management. Rules vary. I wish there was a magic bullet, but like finding a GREAT accountant, managers are few and far between,imo. Rich.