Screening Your Own Tenant w/ Property Management Company

[Drew Osifalujo]

I have property that i have recently rehabbed and that I am about to being marketing for tenants through my PM. While I am a big fan of using a PM for day to day activities, the first month's rent that is charged for tenant screening and placement takes a huge chunk out of my ROI calculation. I am curious how often investors have had luck placing their own tenants and bringing in a PM once the tenant is in place. I cant see a company turning down a contract because it doesn't have the cherry on top, but would be curious how many would pass on that offer.

I know a good property manager helps protect my investment from bad tenants in screening, but I really see tenant screening, showing and renting the property as a one-time activity that I should own, especially if it will cost me $2,000 for only a few hours of my time.

[Nathan Gesner]

I have to agree with Drew. You're choosing someone to live in your rental for $2,000 a month. How qualified/experienced are you to properly screen them, avoid the scammers and sob stories, etc?

You have no screening experience, or very little, whereas I process nearly 1,000 applications a year. Who do you think will do it better?

No PM worth his salt will waive a fee just to help you retain cash. They charge for a service because they know what's involved and require compensation for their training, experience, and effort. If you can't afford that then I recommend you try to find a PM with lower fees. Just remember that cheaper doesn't mean you'll make more money.