Property Management: In-House vs Outsourcing mgmt for 80+ units

[Eric Anderson]

Hi, I'm looking for advice on how to best manage a package portfolio of 76 apartments spread among 20 small multi-unit buildings in the same area.  Total gross rent would be around $700k/year.  We may increase our portfolio in the future. 

We're debating hiring a part-time or full-time property manager and contracting with a maintenance tech, or outsourcing everything to a property management company.  It seems there are pros and cons to each option and am wondering if the BP community may have some insights.  Are there certain thresholds to reach (ie # of doors) where it makes more sense to hire a property manager as an employee vs hiring a property management company? Thanks!

[Mike Dymski]

I can only speak for the amount of involvement using 3rd party management...and it can be minimal.  Everyone (who doesn't have a portfolio) says you have to manage the manager but, in reality, the management company is typically going to revert to what they want to do regardless of your involvement (within reason).

IMO, having employees would be more involved, especially when they turn over (but it's a valid management model and it provides a lot more control).  I considered it many times driving back home from my rentals but I choose to be an investor rather than a landlord.