Toying with the idea of handing over to PM

[Anthony Barbato]

Since I began investing in real estate, I have never even considered a property management company. It wasn’t an option for me. The management has been something that I wanted to do from day one, I think for the control. I wanted to design my own lease agreement, my own paperwork, etc. I wanted to be the one to walk through the unit with a prospective tenant, do inspections, all of that. That way I know it’s being done right and the way that I want it done. I have a tendency to be a perfectionist and I wanted my hands on the entire management aspect.

As my life moves on, and my family grows, and my number of units increase, I find it harder and harder to juggle family time, a day job, and managing the rentals.

I’d like to hear from some of you, specifically those of you who managed your own at one point, then transferred management to a PM, and how that experience was for you. Do you feel comfortable with the PM handling everything? What are the pros and cons?

[James Wise]

Originally posted by @Anthony Barbato:

Since I began investing in real estate, I have never even considered a property management company. It wasn’t an option for me. The management has been something that I wanted to do from day one, I think for the control. I wanted to design my own lease agreement, my own paperwork, etc. I wanted to be the one to walk through the unit with a prospective tenant, do inspections, all of that. That way I know it’s being done right and the way that I want it done. I have a tendency to be a perfectionist and I wanted my hands on the entire management aspect.

As my life moves on, and my family grows, and my number of units increase, I find it harder and harder to juggle family time, a day job, and managing the rentals.

I’d like to hear from some of you, specifically those of you who managed your own at one point, then transferred management to a PM, and how that experience was for you. Do you feel comfortable with the PM handling everything? What are the pros and cons?

 I run a $50M portfolio which consists of my own investments as well as those that I manage for other investors so I can offer a perspective on this from both sides of the coin. 

 If you are a guy who needs control & has trouble being hands off you are going to hate it. It's gonna be a disaster for you & for your management company. Sounds like what you really need is an employee. Heck you can even find a 1 man company or Agent to do this work for you. But what you absolutely don't want is a large property management firm. Large firms have specific systems & policies in place so they will not be willing to deviate from them which is something you will likely want them to do.