Tenant told me she has experience as property manager?

[Allen L.]

Hi guys,

I just closed on a property and the tenant who is in the section 8 program told me that she has had experience as a property manager before. I did find a property manager, but he isn't very responsive and have been avoiding to tag along on the closing walk through with my agent tomorrow. I am wondering if it's a good idea to offer the tenant PM responsibilities? It's a duplex so PM manages both units. I assume it's kind of obviously a bad idea since there is a conflict of interest, plus I doubt she's licensed or insured. The pro is that I assume I will save on expenses. 

I heard Tenant PM in larger multi-family isn't unheard of, but this is a duplex property. From what my agent tells me, this tenant is very responsible, pays on time, and fixes whatever stuff she can fix on her own instead of calling maintenance.

Just want to check my sanity and see if there are any cases where an investor has succeeded with tenant PM.

[Michael Ealy]

Originally posted by @Allen L.:

Hi guys,

I just closed on a property and the tenant who is in the section 8 program told me that she has had experience as a property manager before. I did find a property manager, but he isn't very responsive and have been avoiding to tag along on the closing walk through with my agent tomorrow. I am wondering if it's a good idea to offer the tenant PM responsibilities? It's a duplex so PM manages both units. I assume it's kind of obviously a bad idea since there is a conflict of interest, plus I doubt she's licensed or insured. The pro is that I assume I will save on expenses. Just want to check my sanity and see if there are any cases where an investor has succeeded with tenant PM.

 Allen,

After buying over 1,000 apartment units, my vote is NO. It's a bad idea to have a tenant manage the property. You want to be in control (or someone who works for you) not your tenant.

Besides, you need to have professional property management to represent you. By having a tenant which is likely unlicensed to do the management, what message are you conveying to the other tenant?