Budgeting for Property Management services

[Kimberly Reed]

Hi! New to BP and REI. I'm under agreement for my first multi unit. At this point, I'm planning to manage it myself, but as my portfolio grows I'd like to outsource it. I'm hearing that I can assume costs for a management company would be between 5%-10% percent of total rents. Those of you that are using them; would you say that's accurate for the Pittsburgh market? And at how many units did you switch from managing them yourself to using a third party? Thanks!

[Jeremy Taggart]

@Kimberly Reed I would definitely self manage to start off. You'll learn what goes into it and will be much better equipped when/if you decide to outsource it. You'll also be able to better tell who is actually doing a good job managing your properties if you were to decide to hire someone. I'd budget at least 10% because you have to factor in other costs and the typical 1 months rent leasing fee.