Do you use a property manager for a house-hack?

Question

Hey Guys,

Looking to close on my first investment, a duplex to house-hack. The numbers work when accounting for management fees. However, I was wondering what you guys thought about self-managing a house-hack vs having a property manager do it for you. What do you recommend for a rookie?

Thanks,

Matt

Joshua Adlam · Answer

Hi Matthew,

You do not need a management company if you are house hacking. You can definitely save that extra 5-10% by taking care of anything yourself since you live next door

Steve J. · Answer

@Matthew Tregoning

I am currently house hacking my first property and managed myself in the beginning. I ended up hiring a PM to take over though. If I could go back in time, I would’ve hired a PM from the beginning and acted as if I was a tenant. For me, I’ve found that it’s a weird dynamic when the neighbor knows your the owner.

Every time I’d see my tenant, they’d have something to say was wrong with the house that needed fixing. It would be the smallest thing, but since I’m right there they bring it up. There were also times where the noise next door would be really loud, and in my mind I’d approach the tenant as a neighbor simply asking if they could keep it down but since she knows I’m the owner it would turn into this big thing and she would feel as if she was under attack. .

Again, these are my personal experiences and maybe it will be different for you but I’ve found it’s a tough relationship to manage being both the owner/neighbor.

Sam Lewis · Answer

As a rookie I would recommend managing it yourself. Excellent experience - tenant placement, maintenance requests, lease writing, etc. Once you realize what you like / don't like, you can determine whether you'd like to hire a PM

Theresa Harris · Answer

I have a PM for one property as it is a student rental and I don't want a conflict of interest should it be rented to a student in one of my classes.  If you are in a similar situation or it might be an employee of yours, then a PM might be a good idea...otherwise do it yourself.

Matthew Tregoning · Answer

@Sam Lewis Thank you for your feedback! There does seem to be valuable experience in managing this on my own.

Matthew Tregoning · Answer

@Joshua Adlam Awesome, thank you! Wasn’t sure if it was a bad idea due to tenant relationships/ conflicts of interest.

Matthew Tregoning · Answer

@Theresa Harris Will do, thank you!

Theresa Harris · Answer

Read your local laws, get a standard lease for your area and customize it; then do it yourself.

Brandon Rush · Answer

Hey Matthew, while I think you should start with self managing a house hacked duplex I can definitely see the points that @Vonetta Booker and @Steve J. are making. With it only being a duplex, it should not be too bad. But, I have house hacked a triplex and currently a fourplex. It can easily fell like its turning into a job as you will have more tenants to complain. On my next house hack (assuming a 3 or 4-plex), I am actually considering hiring property management. The tenants can truly be pains in the a**es sometimes and there are some months where the request just do not stop coming in.

A lot of it will also depend on your personality. Not everyone can manage tenants. Even if they believe they can, its a different story with you must confront a tenant on an issue.

Good Luck!

Vonetta Booker · Answer

@Steve J. - I totally hear you. I've used PMs in the past for my properties & it worked out great; now I'm looking at a possible house-hacking situation & have decided that I'd still go the PM route, for many of the reasons you've described. Whether we live at the same property or not, don't call me at 1a because your lightbulb burned out, bruh. PM will handle that, especially if the $$ you save on house-hacking give you more room to afford a good one. A lot of BP-ers talk about the money-saving aspect of the DIY approach - but the reduced aggravation & time saved balances that out & is just as valuable (if not more), in my book.

I think that PMs still go a long way in maintaining a business vs. neighbor relationship.  Plus as an investor, you need to know your strengths & weaknesses and be ready to outsource the latter to maintain your business efficiency - regardless of the proximity to your tenants. I know that I personally have no desire whatsoever to deal with tenants directly on a regular basis when it comes to management - I don't care how close they are. I'll say "hi" as a neighbor & keep it moving.  You got a leak? Call the PM & they'll sort things right on out.  At the end of the day, your business is just that - and you, not your tenants, call the shots on how you want it set up.

Do you use a property manager for a house-hack?

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