To manage myself or hire PM if you are far from your rental.

[Steve Stanley]

Hello everyone, 

I have a single family home that I just finished remodeling and I am considering renting it long term vs selling right now. 

Thing is, I would be moving far away from my home to help care for elderly parents and was thinking about renting the house for a few years or longer. This is my only home and my mtg is super low since I bought a long time ago. Rents are high in my area right now, so it is worth it. 

I have talked to a few management companies and crunched some numbers. 

Quite frankly, they take a whole lot of the monthly profit and I am feeling like at least researching ways in which I could manage this home from out of the country. 

Is there a way to do this that would make up the trouble in profit? 

I calculated that with a PM company on a 2k rent I am paying almost around $400 per month if you consider the 10% management fee and 1st month's rent they keep. (also $500 renewal fee) (Nashville market)

So I was thinking I can get a solid contract/lease, study up on the tenant screening and notices, etc, to avoid the management costs, but I will have difficulties after I place the first tenant and would need boots on the ground. 

For this, I was wondering if there are companies I can pay to do walkthroughs and inspections for me to take care of the boots on the ground part of the managing a rental. 

For the possible eventual repairs, I could work that myself when a repair is needed by hiring from thumbtack or other contacts I have gathered from the many years I have lived here. 

I would have an issue with a tenant acting up and would have to educate myself on how to handle situations as they arise AND would have to figure out a way to do final walkthroughs and how to get home ready for new tenant. 

Sounds like a lot, but it is also a lot of money to give to a property manager , so I think it is at least worth it to explore this avenue, if it even exists or is recommended by the pros here. 

Any advise is appreciated. 

[Luka Milicevic]

@Steve Stanley

How many property managers have you spoken to so far? 

$400/month assumes you are replacing a tenant every single year on a consistent basis and getting zero lease renewals. 

There are mgt options. You can pay to place a tenant and then self manage if you'd like to go that route. You mentioned out of country....what time zone are you in? That's going to be a HUGE factor. 

I would speak to a few more managers as those fees are very high. At that price point I'd look at getting a 50% leasing fee and 10%/month