Is having a property manager worth it?

Question

I am wondering how many units did any of you have before you got a property manager?  Do you feel that it was money well spent?  Has it allowed you to grow as an investor? Any thoughts are appreciated!

Jim K. · Answer

I wouldn't trust most property managers to manage their way out of a wet paper bag. The capable, honest ones are worth their weight in gold, and never get paid what they're worth. So it's a very weird profession.

Nathan Gesner · Answer

It depends on your situation. Some people are too far away to effectively manage investments. Some are local and could do it, but choose to use a property manager because they can do a better job or because they just want to protect their time.

I manage 400 rentals, own over 30 doors, and used to manage 70 vacation rentals. I'm qualified to manage a short-term rental and I love only 30 minutes from one I own, but I still let a property manager take care of it. Why? Because my time is more important to me. I can pay a property manager to handle everything for me, protecting my time from interruptions and the property still cash flows. I could make more money by doing it myself, but that would take away time, cause more stress, etc.

Consider your own situation, skills, and goals to determine what works best for you.

Soh Tanaka · Answer

Generally speaking, the further you live from your rental(s), the more benefits you may get by hiring a good property manager. Or the more rentals you have, the more benefits you may get by hiring a good property manager.

That said, I know someone who personally manages a lot of units out of state. I also know someone who has one unit nearby and still hires a property manager.

Also, consider not just your time but the amount of work you have to put into your continuing education.

Dick Rosen · Answer

Get in trouble without a Property Manager and you'll find out how much their knowledge and experience is worth! Do you know all of the Landlord Tenant Laws in your area, are you familiar with the Fair Housing Laws, last I heard a first offense has a fine of $16,000. I have been in court with evictions, ethics violations and fair housing, always came out the winner. What's that worth?

Theresa Harris · Answer

I have a property manager for one unit (soon to be two as I got a new place), not because I can't handle them, but because with my work, I want to avoid a conflict of interest.  If you buy a good place and get good tenants, it shouldn't be that much work.  So a PM isn't a matter of how many units, it is do you want to deal with the tenants or not.  A good PM is worth their weight in gold.

Gary L Wallman · Answer

I own over 130 doors. I self manage with one part time employee doing paperwork and showing the units. Have a full time handyman. Save 80k a year and treat my tenants like gold.

Neddie Smith · Answer

@Nicole Flakes i think having a quality PM is worth it when your current goals are to scale. The small fee you pay will net you more $$$ in the time you use to find and land more deals.

Eric James · Answer

To add to what other have said. Some people just aren't cut out to be a PM. Even if they want to.

Taylor Wrice-Brooks · Answer

@Nicole Flakes

I’ve managed with my property management company over 22 units currently and the majority are  all out of state. Our landlord’s are always pleased because they win back time and privacy and it’s as if being a landlord is in auto-pilot.

Find someone who understands what questions the landlord will have before even asking them and what tenants usually end up doing.

I’ve been in the industry for 5+ years working with bigger residential + commercial companies and have been able to manage multiple units at once while learning the importance of best practices daily to keep your landlords happy and your tenants quiet.

Zambricki Li · Answer

@Nicole Flakes depends on your return. And how many units. If it’s less than 20 units you can probably self manage. If you are making %20 return how comfortable are you giving half away? You may be rolling and have no mortgage. Great than think about!!  Property managers at times have a cascading effect where they hire more expensive repair people, don’t truly “care” ect. If they are also a real estate company they may be focused on deals and have it as an ancillary business.

One or two plane tickets a year and becoming a Yelp master is all you need in 2021 if you are good with people. (I’ve never even needed the plane ticket though keep the mental ticket in my mind and will hop on a plane if really needed) Got a problem? Yelp it and deal. Good luck!

Is having a property manager worth it?

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