PM or no PM

[Ayyoub Aj]

I’m looking to rent out my home in a month or two. But I’m not sure whether to go with a PM or just do it myself. 

The house is located in a relatively nice neighborhood near universities and plaza. I’m expecting 2.5 to 3k rent. 
should I assume that I will get stable and easier tenants?

I don’t mind paying for a PM. But I don’t know what value they will add and how to find a good one. I have no interest in managing the manager. 

I also know that KCMO have the tenant bill of rights. Not sure if this makes the city less favorable to landlords. 

I would love to get some advise. 

[Nathan Gesner]

I think KCMO is considered a landlord-friendly location.

A professional property manager can significantly improve an investor's life by streamlining operations, maximizing profitability, and reducing stress. Here are just 10 ways they add value:

1. Tenant Screening & Placement: A professional manager screens hundreds, maybe thousands of applications per year. They are far better at tenant selection than the average landlord that screens a few people per year.
2. Efficient Rent Collection & Enforcement: I spend a ridiculous amount of time answering questions from investors that have no idea how to handle late rent, unpaid rent, and other pay issues. A good PM is efficient with solid policies in place that enable them to act quickly and prevent things from getting out of hand.
3. Legal Compliance & Risk Management: A good PM knows the law and protects you by obeying it. They have solid lease agreements designed to protect you, your income, and your property.
4. Property Maintenance & Repairs: They have a network of vetted, licensed, insured contractors that can respond quickly and do the job right the first time.
5. Minimizing Vacancy & Maximizing Occupancy: Their marketing reduces vacancy time. Their services increase the odds of tenants renewing and staying longer.
6. Handling Evictions & Problem Tenants: A good PM handles problems quickly and efficiently. I manage 400 rentals and have only evicted one tenant through court in the last ten years. When a tenant causes problems, I can remove them six ways from Sunday, typically much faster than the courts could do it.
7. Financial Management & Reporting: It may seem small, but accurate accounting is important and not in the tool box of most investors.
8. Market Knowledge & Rental Rate Optimization: Understanding the market is critical to maximizing returns. The PM will know more about rent rates and trends, ensuring your property is rented for top dollar. Many of my landlords saw income increases after hiring me because I brought them up to market rates.
9. Time & Stress Savings for Investors: A PM will handle the work so your time is free to focus on family, hobbies, growing your portfolio, etc. You won't get calls at 11:30pm on a Saturday reporting heat is out when the temperatures are -17 degrees.
10. Increased Long-Term Property Value: "Nobody will care about my property better than me!" This is a common fallacy. In my experience, most mom-and-pop investors lose a lot of money due to poor management of tenants, as well as poor/deferred maintenance. A good PM protects your monthly income and your overall property value.

A skilled property manager will protect your property, income, time, and sanity. Doing it yourself will work, but it takes education, time, and effort to achieve success.