Is it best to self-manage or higher a PM company?

[Claudio Garcia Zuniga]

I will be closing on an investment property this month and I wanted to know if it would be best to self-manage or to higher a property management company.. 

[Travis Bohling]

Congratulations on your investment! 

Do you have experience as a landlord?

Are you local?

Do you have a network of reliable vendors?

Do you enjoy landlording?

Would you get more value out of using your time for another pursuit?

[Grace Gudenkauf]

I think it's super important to understand how to lease and manage your own rental property. It never made sense to me that people buy rentals and immediately hire out the most important factor of its success (the management) to a 3rd party who likely takes 10% plus other fees.  That being said self-management is not for everyone - if you have a very low stress and problem solving tolerance or are for example a super buys executive it likely wouldn't make sense. However at the end of the day I do think self-managing with systems and processes is a great way to keep more cash flow and ensure higher quality tenants. Good luck! 

[Alecia Loveless]

@Claudio Garcia Zuniga If you are local to the property and only own a few of them it probably makes more sense to manage them yourself if you think you have the capacity to run it like a business.

If you know you will be a pushover or have no follow through and know you won’t be consistent about doing things like maintenance and finance stuff then you should just hire a property manager.

Personally I have 25 units and scaling up and generally speaking it takes me about 5 hours per month to do everything. So it’s not that it’s time consuming. Yes there’s periods where there’s more work and periods where there’s less but once you develop a team it’s quite easy.

[Chris Seveney]

@Claudio Garcia Zuniga

Do you have time to show the place or run over to the property on a Sunday to fix things or take calls at 2am? If so manage yourself, if not hire a PM (which I 100% believe people should do) but I understand people who self manage

[Joe Norman]

In my honest opinion if you aren't confident enough in your knowledge, network, and abilities to make the decision to self manage an easy one, then hire it out to a pro. There are so many unknown-unknowns and, unless you have a very experienced mentor willing to walk you through it, I don't think it's worth the risk for a rookie to take on self management. Good luck!

[Michael Smythe]

@Claudio Garcia Zuniga if you have to ask - then you don't know enough to DIY manage.

Hire a PMC!

[Maksu Ize]

Search button exists

[Jaime Duron]

Hi Claudio Garcia Zuniga! Great, question. It really depends on how active you want to be with it and if you have the time or not. If your looking to continue build your portfolio with little interaction with tenants and not deal with issues throughout the lease,I would go with a PM. Though, you will still need to manage the PM and build a rapport with them on a quarterly basis or semi-annual. Now if you have the time and don't mind receiving calls for issues and handling it yourself or hiring someone for the job, then consider managing it yourself for the first year and see how it goes. Hope it helps. 

[Joseph Narcisse]

I just posted a video about this, but "BIGGER BROTHER", lol, made me take it down. Anyhow, your decision to use a property manager is heavily dependent upon your lifestyle and how much time you have. When you raise the rent or have new tenants move in; Those are the periods you can expect the highest volume of calls, inquiries, or complaints about the property. It almost has nothing to do with how you've written the lease. If you can tolerate that, then you'll probably be fine throughout the lease term. Things of course vary from one property to the next and if you multiply your units, you multiply the frequency of problems you have to solve. Take those things into consideration as you take on the challenge and call a property manager if you get in over your head.

HOWEVER, deciding to use a property manager in the beginning when screening the right tenant, (we call them Residents), highly increases you likelihood of success as a CASHFLOWING investor. I hope this was helpful.

[V.G Jason]

Always hire a PM, too much liability and time at risk. Anyone that says otherwise thinks like a small fry. 

[Adam Bartomeo]

There is no "best". It is dependent upon your situations, abilities, and goals. I feel that most people can self-manage 5 - 10 properties while being employed if they are local. If you are not local than 1 -2 may be a hand full. If you are looking to expand rapidly than you may want to text out your PM on your first couple instead of handing over 10 at one time. If you are going to self-manage than at a minimum you need to learn about the laws and leases.

[Spencer Abeyta]

The biggest hurdle self-managers face right now is changing laws. I believe most people can manage their own rentals if they are local. But, it is becoming a full-time job to keep track of all the changing legislation. If you are willing to take the time to read the laws and hire a lawyer to help you interpret them, self-managing would be viable. 

In my opinion, it may be worth it to hire a property manager so you can focus on your own goals regarding real estate.

[Bob Stevens]

Quote from @Claudio Garcia Zuniga:

I will be closing on an investment property this month and I wanted to know if it would be best to self-manage or to higher a property management company.. 

 HIRE A PM, why deal with any of it ?

[Josh Meisel]

Another factor to consider is whether the property is a long term rental or a short term rental. A short term rental requires quite a bit more effort than a long term rental including quick response to all guest communications, managing cleanings after every stay, keeping on top of maintenance (emergency and deferred), marketing the property on all major OTA sites (i.e. Airbnb, VRBO, Booking.com, etc), sophisticated rate management and paying all state and local hotel taxes. As the owner of a short term rental property management company, we help owners who are frequently overwhelmed trying to do all of this on their own. 

[Michael Smythe]

If you have to ask a bunch of strangers -> hire a professional!