Property Management or self manage?

[John Boyd]

I'm in the process of purchasing a duplex, and there are already Property managements with the property, after reading over their contract, I see that they indeed get a lot of monies for just two units. My question is: should I keep them, or should I try to do it myself?

[Drew Sygit]

@John Boyd

From our perspective there are pretty common things DIY's do wrong, that you should consider before self-manaing:

1) Too nice to tenant: you will be running a business, so don't cross the line about being friends with tenants. Friends get taken advantage of, which an investor cannot afford. Search online for how many DIY'ers let their tenants get months behind by being too nice.

2) Not organized: If you're not good at staying organized tenants, contractors and the IRS will eat you alive. You should have systems in place to track income and expenses, even if it's just a spreadsheet. Track when tenant rent is due, when they pay and when to charge late fees, etc. Use calendar reminders for inspections, following up with contractors, etc.

3) Not enough time: You have to consistently make time to get things done. You easily get in trouble when you blow off your DIY tasks to have a relaxing weekend. Handling showings and screenings for vacant units can eat up a lot of time.