What tips a self-managing investor to the point of seeking a property management company?

[David Panzera]

Hi, all! I'm an investor with about 30 of my own properties and about another 270 under management in my PM company. We began an integrated marketing plan a few months ago to try to find new investors who need PM, and we keep coming back to this question of psychology in our strategy discussions: What makes a self-manager decide they want to outsource management of their properties?

I know the answer is different for everyone. We've had new clients say it was a volume issue - they just couldn't handle management after a certain number of acquisitions. We've had people say life circumstances changed and they just didn't have the time to devote to management any longer (and do a good job). And so on.

Since I manage my own properties via my company and never made that switch myself, I'd appreciate hearing input from self-managing investors about whether they've thought about outsourcing, what would make them switch and necessarily give up a slice of cash flow, whether they've just done what I did and decided to open a PM company, and any other thoughts you might have.

Thanks!

David Panzera, Panzera Realty

[Steve Vaughan]

Volume, quality of the PM and the compensation structure.  If I'm going to get charged $85 to have a breaker un-tripped (should have been explained on the phone) to a PM that is rewarded financially when I have turnover, then our goals aren't aligned.  I self-manage 35 houses and apts.  At times I am busier than I want to be, but I'll sell before I turn my properties or my people over to the status quo.  Be excellent @David Panzeraand you'll have more business than you'd dreamed of!