Property Management or No?

Question

Hey guys,

I've been self managing a property located in a kissimmee florida. My tenants of 4 years have decided to move out and I now have the option of hiring a manager or not.

What are you thoughts??

Tracy Streich · Answer

@Neil Da Silva One property really depends on what you really want to do.   If you live local and have the time you can handle it.   If you want to passive and be an investor and not a landlord turn it over and don't look back.   @Kim Meredith Hampton would be a great PM to contact.   If she does not cover that area she can refer you to a solid PM

Neil Da Silva · Answer

Thanks for the input! Referrals appreciated as well!

Brandon Sturgill · Answer

@Neil Da Silva A solid manager should be able to assess the current condition of your property, build a detailed scope of work, locate contractors (if needed), project manage the turnover/renovation, and place tenants at above market rent...yes, a good PM is key...and can be your saving grace as an out-of-country investor.

Plus, good PM's are connected and can point you in the right direction for your next deal...and place it under management at above market rent...and then you can buy another property, repeat...

Alexander Szikla · Answer

I'd continue self managing if it isn't preventing you from achieving other goals.

PMs will compress your margins tremendously.

Theresa Harris · Answer

Do you have people there who can handle repairs and problems?  If not, then you might want someone there to do that for you.

Nathan Gesner · Answer

It sounds like you just put a renter in without properly screening them. Did you conduct inspections at least once a year? Any late payments? Did they return it in the same condition it was given to them? It sounds as if you put someone in, they paid rent for four years, and everything worked out. Being a Landlord is easy! This time.

Then one day your tenant stops paying rent. Or you discover they moved in their brother, his drug-addicted girlfriend, two kids, and a couple bulldogs with a taste for wood trim. Or a tenant disappears in the middle of the night and you discover $10,000 in damages.

If you have a decent rental in a decent community, you can generally find a decent tenant and things work out pretty well. But one bad tenant can easily cost you 1-5 years of income. The lower quality the rental/community, the more likely you are to lose. I have a lot of clients that managed their own rentals and thought it was easy . . . until it wasn't. One day a bad renter made their way in and wreaked havoc. In man cases, this happened several times before they finally came to me for help. In almost every case, probably 80% of the time, these Landlords end up making more money AFTER paying my fees and they don't have to spend the time or stress over it.

You can keep flirting with danger and operating on the idea that people are generally good and will behave just because you're a nice Landlord. Or you can hire a professional that will operate it like a business with people that are properly screened, paying market rent, checked on regularly, and held accountable.

Drew Sygit · Answer

You might want to read our series about how to “Screen a PMC Better than a Tenant”: https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

Valentina Naumenko · Answer

Greetings. You don’t have to have a pm for leasing the home and use the realtor, but how interested will be your realtor to get you a really good tenant?  They will get people in and that would be all. PM in contrast will go above and beyond as at they have to deal with this tenant every day and have best interested in securing the right tenants. This is just one example

Property Management or No?

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