21 years ago I decided that I didn't want Property Management to a full-time job even though I was going to self-manage each property.
Now I have 28 apts with 60 or so tenants in 8 multi-family buildings in Brooklyn, NYC.
I use a LOT of technology including electronic rent collection, electronic locks, internet controlled Thermostats, WiFi Cameras, Cloud Based CRM, Electronic Signatures (DocuSign), automated expense payments, etc. All controlled on my Phone Apps.
Additionally, it's been 18 years since I had to do an eviction, which I did myself.
I normally get tenants who have at least a 700+ FICO. In fact, my last tenant which I signed a lease with in March had a FICO score of 822.
I look at the time you will be spending on management as a function on the kinds of properties you buy AND your skill as a PM and if you are willing to research and buy technology.
I probably spend less than 15 hours a week on average involved in Property Management issues.
When I taught Real Estate, I often told my students to be careful of buying yourself a full time job when looking for an Investment. Remember, the difference between an Investment and a Business is the less time you spend on the operations of the business, the more it is an Investment. I don't want to buy a Business, I want to buy an INVESTMENT. Therefore, I look for properties that will require less of my attention if I am self-managing it.
Properties that require a lot LESS management comes with a high initial cost. HOWEVER, over the 21 years as a buy and hold, self-managed Investment Property portfolio owner, it's an incredibly acceptable job for me! :) One that gives me raises every year as the consistent increases in cash flow and appreciation continues every year except in the financial crisis for a few years.
I will probably continue to buy properties and self-manage them until I see it will take more than 20 hours a week.
BUT, with all the automation, smart sensors and leak and smoke detectors, wifi cameras and locks, etc., I am wondering if the only time consuming event will be bad tenants that need eviction. Since my screening process is so difficult in a place where the vacancy rate is below 5%, I'm ensuring that doesn't happen much if at all.
I may even find that my time spent on PM will actually go down due to technology advances despite increasing my portfolio. We'll see!
