Property management decisions

[Michael Raposo]

I have a completely vacant four family home that im purchasing. I already have a two family that ive always managed myself with little trouble but have been debating on getting a property management company for this bigger unit. They charge 8% of total rent and $450 per unit to find and lease tenants. I think this is a pretty fair price. Im a handy guy and still want to handle as many repairs as i can to keep maximum profits. Was wondering what the percentage of people on BiggerPockets use property management and is it worth the profit loss.

[Nathan Gesner]

Is PM worth it? That depends on your availability and skill level.

Let's say a PM cost $100 per month or $1,200 a year. I've seen Landlords stubbornly refuse to use a PM because they can't see giving away 10% of their income. Years later I discover they've lost 10x that amount in work, unpaid rent, damages, cleaning, utilities, etc. 

Don't step over dollars to save pennies. Most of my Landlords make more money after they hire me than they did managing on their own.