Property Management: Self or Outsourced

[Nicolas Blish]

Hello BP Community,

I have been self managing 2 rental buildings (fourplex and duplex) for the past few years. For the most part, the units are pretty easy to rent, and have minor issues here and there (mostly on Sundays of course!). Cash flow has really not been the problem, I've been able to make my payments no problem and put money back into the buildings. I'm getting busy with work and personal stuff though, and don't want to sell these properties but also not sure if I feel like holding onto them if I give away 10% of the rents.

Just a quick rundown:

4 Plex: Average rent is $625 = $2500/month in rents

2 Plex: Average rent is $475 = $950/month in rents

So between my two properties, I can expect rents of $3450. For the most part, rent is not hard to collect. I utilize Cozy for online payments, have a business bank account they can drop money into.

The simple question remains: Is property management worth it?

I find myself questioning giving away $345/month just to avoid a few phone calls and rent collection hassles.  But I also intend to own many more properties over the years, so is it better to accept the costs now and find someone I truly want to work with?

Looking for advice on if property management has been worth it for local investors and if so who would you recommend?  I have had 2 contracts to review, one at 9% fees and one at 10%. 

Any other questions, just ask below and I’ll do my best to answer!

Keywords: Hammond, New Orleans, Louisiana

[David de Luna]

I have property here in the bay area that I self-manage. I got my plumber, electrician, etc, on speed-dial so it's not a big deal and after 2 years of maintenance experience on these ones, it would be a waste of money to hand off to a PM. I have properties out of state that I use a PM for, and the cost is much less ($1700 for a 1 bed in the bay area, $700 for a 1 bed in KCMO) and I'm too far away to want to hustle up a plumber or electrician on a Sunday so it's worth my while. So that decision is up to you. From what I read, you have not yet quite reached your pain point. When you do, you'll know and hand off to a PM. Gather the additional properties you plan and you'll get to your pain point. :-)