Leaving a property management company.

[Jose Remor]

Hi all,

I'm new and found the bigger pockets after reading "How to Invest in real estate" book from Brandon and Josh. Very good book, thank you both for writing it!

I started long ago with no education in real estate. Started with a condo in construction, sold it when done and bought a beach land, sold the beach lend and bought 2 rental townhouses for rental in Greenville. Then got a new better job in Atlanta area and rented the house I was living in Greenville.

Up to here I had no education on real estate. Now I have a little and its time to take actions. First my units are  managed by a local company that charge me between 8% and 10% monthly. High price for low quality service. Slow answers. Let one Tennant hanging with defective outlets in the kitchen for 2 weeks when the townhouse was it was under warranty. Lied saying they contacted the warranty.

Managing it myself will save me 500+/ month which is a lot. But I'm somewhat scared. I have some web design skills (I'm an engineer, so easy to learn new programming languages) and I'm currently testing my new system to manage the tenants. Make sure ill share it here with others for testing when fully ready. Maybe one day I can sell this system, but right now is for my use and under testing.

Since the houses are occupied and the first is reaching its contract limit of a year, its time to renew, increase the rent and I don't even know how to.

I would appreciate any ideas on

1) do a smooth prop management transition with proper Tennant communications.

2) I don't want to move all properties all at once, so I can build experience and also allow time for my contract with this prop manager to expire. Is that dangerous?

3) how to manage the contract renewal and define the new rental value. As this was my first rental and was priced really low. I'm thinking a 3% increase is a fair number, knowing this is what companies are giving their employees yearly. Thoughts?

thank you all in advance!

[Ryan Spath]

Property management is often an overlooked responsibility that can seem deceptively simple. On the surface, it appears to be a straightforward role, but it becomes far more challenging when faced with issues like non-paying tenants requiring eviction or broken systems that haven't been properly followed.

As a self-managing property owner, it is absolutely doable—but success depends on treating it like a business. The key is establishing strong systems and processes.

As mentioned earlier (KISS—Keep It Simple, Stupid), there's no need to overcomplicate things. Simply document everything you do and create your own Standard Operating Procedures (SOPs). This will provide consistency and clarity in how you handle your properties.

Start by reviewing your current Property Management (PM) agreement. Make sure there are no automatic renewals or hidden fees that could catch you off guard. Have a conversation with your property management company well in advance of any transition to ensure you are fully aware of all terms and conditions. If you have only 2-3 rental properties, I would recommend taking full control of management at once rather than transitioning one at a time. Once you commit to this, it can actually be quite rewarding to provide housing to tenants.

For contract renewals and rent increases, the first step is to familiarize yourself with local laws. Once you’re informed, we typically give tenants a 60-day notice for renewal, along with the new rent amount if there’s an increase. If a tenant chooses not to renew, we start marketing the property 30 days before the lease ends. We ask for a decision no later than 30 days before the lease expiration.

When it comes to rent increases, the market largely dictates what’s feasible. Your property type and location are key factors in determining this. For instance, if you are renting homes at $2,200 per month and decide to raise the rent by 3.99% (bringing it to $2,287.78), the likelihood of tenants moving out is generally low, especially if the market supports that price.

Best of luck in your property management journey!