Self-Property Managers...Any Regrets?

[Jason Prevette]

I'm debating self-managing my current primary residence following a job relocation (and move) to NYC, and in part of that decision I wanted to check with some fellow BP'ers to see if there were any 1st timers that could share their experience? Is it that daunting? I considered selling outright to pocket $80k (net of fees) tax-free, but creating passive income where I could net potentially $800-$1,000 per month would be great (rent $2.2k to $2k w/ $1,200 mortgage). Plus I get to keep my attractive 3.375% 30-year mortgage which is another bonus in comparison to today's rates. Houses go quick in my neighborhood (selling or renting) because it's in a good community in a great school district and convenient to major highways. The thought of paying 10% fees (plus 1st month's rent) is not ideal if I could place a tenant myself. I had my real estate license so I have some level of understanding of the process, but my full-time job has consumed my time so I've focusing on that instead.

For background on the property:
*15-year old townhome
*3 bedroom/2.5 bath
*Unfinished walkout basement
*Trex Deck
*Good schools

To prepare to rent I've replaced all 3 toilets with brand new units, new sump pump, new garbage disposal, new modern kitchen faucet, and new washing machine water lines. I have some other odds & ends to do but the goal is to make sure there are little to no calls about any issues. If there are any issues I don't mind fielding a call here and there to send out a handyman to fix.

Any advise would help from those that made the leap into self-management. Any tips, do's/dont's, etc. would be great!

[David M.]

@Jason Prevette

I've managed all my own rentals...  When things go "wrong," yes its take time.  Time to change the locks, time to survey the property and what work needs ot be done, time to get the workers arranged, time to arrange getting them access (either I open the door, my realtor helps out, or I give them the keys at some time), etc.  Otherwise, it can pretty boring (which is good) when all I am doing every month is jotting down that I see the rent being deposited in my bank account every month.  Yes, you will get calls, nowadays texts, from the tenants when something is broken, and you have to, or should anyway, deal with it.  You are just managing another household...  Depending on your personal life, its just part of the hustle.

I see lots of people, I guess aka new investors, geting sucked into all the various "fancy" new-fandangled "systems" and technology.  Honestly, I think the creation of email, voice message (or an answering machine) and text messages is more than enough.  If you can make all the arrangements yourself (or I usually let the tenants arrnange for the repairmen since I'd just be an intermediary messenger making the schedule), why do you need to pay for some fancy scheduling/messaging system?  Or a property manager...

Hope that helps.  I'd be happy to chat if you like.