Self-Management vs. Professional Property Management: Peace of mind

[Daniel Lindenbaum]

I read this quite often: 'should I self-manage my property or hire a professional property manager?'

It's understandable why many investors and/or accidental landlords would opt to simply self-manage. Among other concerns, many simply feel the fees of property management are too high.

In my experience, most who were willing to take the extra step toward having their property professionally managed were relieved to not have to deal with:

A. Late-night unexpected phone calls from tenants

B. Random calls, voicemails, and invoices from maintenance vendors

C. Evictions (we all dread this one)

D. Compliance issues regarding local landlord regulations

E. HOA violations or fees racked up by tenants

F. Tenant screening (how many prerequisites were really screened before they signed the lease)

G. Vacancy expenses when attempting to market your property above the average rent rate

Alright. You get it. Self-managing can be more expensive than simply working with all of the above. Professional property managers are often licensed real estate brokers who specialize in acting as the filter for you for the number items, which are not only costly but a headache.

Paying a bit more for a property manager isn't so bad when you consider something as priceless as peace of mind.

What has your experience been like, self-managing or with a property manager?

[Nicholas Mann]

I think if newer investors want to learn the ropes of Property Management it would be wise to try and self manage their first few units.  Obviously property management is not for everyone but for those who treat it as a separate business venture, it could become beneficial in the long run.  As for myself I have been self managing for a few years and continue to learn the processes that go with management.  Later on in my investing career when I have less time to deal with the day to day I will hire a PM and have a good understanding if they are running my property in an efficient manner.