Upset with property management... Self manage?

[Adam Craig]

I have 23 single family homes being management. The terms are pretty standard - 10% monthly rents - 1st months rent on new lease - $200 renewal.

Most of what they do is fine but they are not on top of tenants as much as I want and I am not sure anyone will care as much as I do about my business - which is understandable. Most of my issues with them is not getting properties ready and relisted quickly after tenant leaves and they dont post 3 day notices and are not aggressive enough with late tenants.

Here is why their job is easier then it could be.....

When a work order comes to my email I handle it every time. I used to let the PM handle it but they cost of sending their people is crazy compared to the people I send. So for the past year or so I have been sending my guys to handle all work orders. In addition to that, the last 12 or so properties I purchased have been completely rehabbed... kitchens/granite/baths. So most of my properties get a premium rent and rent quickly (1 week or less) because they are brand new which makes is easier for the PM.

The part of PM I dont care for and not too sure on is tenant screening/legal issues/collections/showings. I run a real estate business and a separate business I never intended to self manage. But I forked over $32K to them last year and that number keeps rising with additional properties. Would you recommend self managing? Or maybe I can negotiate a lower wage. Or maybe I can find someone do do the screening/collections/showings at a lower rate and I can handle the work orders?

I am not sure what to do but I feel like something needs done. 

[Tommy F.]

@Adam Craig

You run a real estate business and a separate business you never intended to self-manage. Well, you paid $32k last year to a third party manager. Why not bring the property management in-house under the supervision of your other real estate business? You can find someone to work in-house for $32k to learn the real estate investing business under your guidance and you can have a close eye on what's going on. 

Alternatively, with 23 units you should be able to qualify under IRS rules as Real Estate Professional (REP), if you haven't already done so. If not, self-manage, claim REP status, save $32k, and reap REP benefit of offsetting all RE tax losses with other income to include your spouses W2 income.  Good luck!