Can you hire a Management Company and Still be Profitable?
My dad owns a 24 unit building, and 2 four family buildings in NJ. He has always managed it himself, performing most of the labor, but he’s getting to the point where he does not want to do that anymore.
He has always said that it is not cost effective to have a property management company take care of this real estate. Therefore, it appears that the only option is to sell it.
I would like to take over, but I have a full time job and feel I cannot do both. I would be happy to quit and run the real estate full time, but my parents insist it is not possible to own these buildings without also holding a full time job. For as long as I can remember, all my parents have done is work full time for an employer, work on issues with the buildings, and sleep.
So I ask the small time owners with a similar number of units, is it possible to have a management company for this sized portfolio, or does everyone in the same situation also do all the work themselves? Of course, my parents need an income from these properties. How large does a portfolio have to be for it to make sense to hire a property management company?