To Hire or Not to Hire? That is the question...

[Thomas D Koeneman]

Looking into purchasing a SF 3b/1b property with-in 5 miles of my home to set up as an income property. Question, Do I hire a property manager to handle the rental? I have many years of HVAC and Construction background, so it's not about the repairs. Mostly the management issues. My concern is when it comes to vetting the tenants and possible eviction issues. My target tenant will be the local seminary students that are married and would be in the property for no more than 4 years. The seminary provides names of families that are looking for housing. The other option is 1 year lease to 4th year students that are returning from a 1 year vicarage out in the "field". The seminary provides housing for the single men but not for the married families. The property is less than 1/2 mile from the seminary so the possibility of long term vacancies is slim.

Tom

[Mark Ainley]

@Thomas D Koeneman I am a big fan of managing your own property if you have the time, skills/resources, and stomach to make tough decisions.  We manage over 900 units for over 300 investors and they all lack at least one of those 3 requirements and some lack all 3.  In our research we estimate it takes a self manager on average 21 hours a year per unit to self manage and if you do your own maintenance it maybe a little more.  You also have to be prepared to handle things at times that are not ideal...doesn't always happen like that but it feels like it sometimes.  It maybe mental prep more then anything.  

Another word of advice for anyone that self manages is don't let the residents and neighbors know you are the owner. Present yourself as the manager or the guy that works for the owner. This helps when it comes time to make tough decisions. You can make the fictitious "owner" somewhere far away the bad guy. Tenants tend to take advantage of that relationship with the direct owner and it will work perfect with the LLC in place.

You can also be a self manager and outsource certain pieces.  Outsource tenant screening or outsource the work order line.  There is huge ability to piece meal self management these days.  Take @Corby Goade advice and connect with the local NARPM chapter.  You can always find one local PM that will give you free advice in exchange for lunch or a good online review.  Plus you have a nationwide network of guys like Corby or myself that would give you advice if requested.