Set It And Forget It?

Question

I was just curious how many of you have multiple properties and just let Property Mangers take care of all aspects for every property you own? How much money are you giving up a year for this?  Is this amount of money worth the hassle and aggravation of Landlording? How many properties do you have and did you find having a certain number of doors allow for you to switch to having a property manger?

Thomas S. · Answer

The number of doors has no relation in regards to hiring a PM. You hire a PM because you do not want to manage tenants and property issues. You instead are then responsible for managing a PM which in itself is a big responsibility. There is no "set it and forget it" in this business. PMs that are not closely monitored and supervised will put you out of business. There are so many bad fly-by-night PM operations that you never want to take your eye off of your business. You are simply shifting your management responsibilities to a single issue as opposed to multiple separate properties.

Being a active hands on landlord requires not only specific skill sets but more than anything else requires the desire to self manage. It's a job most arm chair investors are not suited to and not interested in doing. Their job is investing not managing contractors.

I prefer to self manage. No one can do my job as well as I can in my opinion. Certainly not as cost efficiently. Keeping in mind it is a job and I already have all the properties I desire with 30+ doors.

Mike D'Arrigo · Answer

@Justin Lee Frye The purpose of hiring a property manager is to free you up from dealing with the day to day things a landlord deals with so that you can focus on managing the ROI of your portfolio. It's the difference of a landlord mindset and an investor.

Mark Hart · Answer

@Justin Lee Frye Great question! If your rentals are mainly out of state then I would definitely want to hire a PM company. If your rentals are within driving distance then it comes down to how much time you have available. Many investors aren't looking for another JOB after spending a full day at their careers and with their families.

My recommendation is if your rentals are close by and you have the time then you should try managing on your own to see if its something you like to do / if its worth your time!

Ali Boone · Answer

The amount I pay for PMs in a year is 100% worth it for me personally. Partially because they are long-distance properties from me, partially because I have absolutely zero interest in dealing with landlord drama (and I know landlord drama because I actually do landlord a property I own local to me), and partially because I hate headaches. But that's not the case for everyone. Some people are good at it, like the job, and feel better having closer eyes on their properties. It's totally personal preference.

If you're bored, here's a true story about when the PM fees I was paying totally paid for themselves:

https://www.biggerpockets.com/blog/2013/06/29/prop...

And just for anyone reading, so the title doesn't become misleading... even if you go the PM route, that doesn't mean you can just set it and forget it. You need at least one eyeball on the property manager or you're setting yourself up for some hurt. I work primarily with turnkeys and that's one of the biggest and most dangerous misnomers that people think when they buy a turnkey- that they can set it and forget it. Not true. Minimal work, but still requires that eyeball and sometimes some backbone.

Aaron Hunt · Answer

@Justin Lee Frye

I strictly use a PM team. They take 7%. Easily some of the best money I have ever spent. I’m not an ahole landlord though. If stuff needs to be replaced or fixed - I approve to get it done, the right way, immediately, no shortcuts - and they know that. They have leeway up to $500 for any repair. So they seem to like working with me. My day job is life or death (literally, at times) so I need to be able to focus and also rest. My W2 income is fairly high so I’m not depending on the rental income. And 75% of my properties are 2,400 miles away, while 25% are within 250 miles.

Joei Muffoletto · Answer

We are totally hands off, we have several properties (all turn key SFHs that we've had for a while) that are all 100% managed by professional PMs. Some charge a percentage and others a flat monthly fee. It's totally worth it for us, my spouse works 50+ hours at a job he loves and I am a stay at home mom to 3 small boys. In the future as our lives aren't so crazy we may change strategies, but right now it's working great.

Rob B. · Answer

Not to knock property managers at all, because they offer a lot of super valuable services. That said if you're looking to remain autonomous with your business, it could make sense to look for a service that helps to make managing your own rental super easy. There are some great ones out there that offer the core duties (listing the rental property, tenant screening, lease creation, rent collection, and maintenance tracking). To be clear, these tools are available for you to use to manage your own rental, but they're built with smaller DIY landlords in mind. And the best part is instead of paying anywhere from 6-10% of the monthly rent to a property management company, usually (depending upon the # of units you have) the subscription fee is minimal. Let me know if you have any questions! :)

@Justin Lee Frye

Patrick M. · Answer

Allow for you 1st year of landlording to involve hassle and aggravation.

If it persists, you are doing it wrong.

I self manage on top of my W-2. It is a very fun hat that I enjoy wearing that has been very rewarding. If you are disiplined and take it serious from screening to repairs, etc. then you will find it very manageable... and I would say very fun and rewarding.

You need to allow for the first year so that you can learn and adjust to being the best landlord...

Justin Frye · Answer

All good information! Anyone completely hands free aside from managing the property manager?

Set It And Forget It?

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