Why hiring a PM is CRAZY!

[Marian Smith]

Just thought I’d write a few words as a counterpoint to the trending post.

I own and self-manage 5 properties. I have had rent collection issues but never had to evict anyone, nor have I lost even a month’s rent. But I have sent out notices.

I keep the properties well maintained so do not have many maintenance calls. But it happens.

I have two hvac and two plumbing contractors that I use. The solo guys are my go to and the others have a 5-8 guy crew that are 24-7...and the plumbing crew has rooter equipment, etc.

A PM would cost me about $500 a month. I guess if I made $100 an hour every waking moment I would feel more than justified hiring a property manager. But I don’t, so I consider it paying myself $100 an hour when I manage routine issues, probably much more if I actually recorded time spent but probably quite a bit less when I have a vacancy. However, I prefer to be immersed in the reletting of my properties because I like the properties to rent out very clean and my new tenants to seem nice and organized...as well as financially qualified. After all, it costs me, not a PM if my place gets let to a less than optimal tenant. (Slob, non-compliant type, constant complainer, bad vibe.)

Lastly, I can rent a tad under market. My tenants have no reason to move because my rents are less than comparable properties that have to cash flow after paying PM fees as well as the initial cost to fill the unit.

PMs provide a service. Undoubtably a valued service to their customers. I probably could list a few positives for using a PM, but the PM who started the opposing thread did not offer a balanced view, so neither will I.

[Matthew Irish-Jones]

@Marian Smith sounds like you are running a tight ship, so there is no need for you to use a PM.  However, if you had 50 doors that may change.  At that point you are either paying a PM company or you are essentially running your own in house PM company.

Also, lots of investors can't invest where they live so they are paying a PM company in a market that is advantageous to them.  

Like you mentioned paying a PM company is a service to save you time.  If you are not worried about your time commitment you are doing ok.

Have you considered learning how to do HVAC repairs so you don't need to pay the HVAC guy?