do you manage your own properties? 21 posts by 19 users

Posted: 01/16/2008 at 06:33PM

Self...

Don’t have " rentals" though... Just lease option buyers...

Only have to collect monthly lease payments.

Posted: 01/17/2008 at 06:22AM

I manage my own, but I only have three. It can be a pain. All of mine are local so I can stop by and check on them regularly. If I was further away I would pay for someone else to manage it.

When my wife and I get more than we want to handle (maybe 10 or more units) we will turn them over to a management company. Our plan is to pick up 4 more units this year.

Posted: 01/17/2008 at 11:03AM

I would manage my own but they're all in other states so I depend on (and curse) property managers.

Posted: 01/17/2008 at 03:48PM

that was worth more than 2 cents.....

Posted: 01/20/2008 at 09:02AM

Adding to my question...what do you do about the yards of your rentals? Do property managers recommend letting the tenants do their yards in homes?

Here, if you don't do the yards and change the filters yourself, it doesn't get done. That situation has gotten worse over the years. We do recoop 1/2 of the yard service fees and enables the owner to keep a yard crew coming 2x a month year round. Or you can pay for one visit and the tenant can call and set up additional visits.

Also, there are few yardmen that won't scalp your grass by cutting it too short and treating it rough.

Posted: 01/20/2008 at 11:08AM

I drop off 12 for them and demonstrate how to change them. That doesn't seem to move them at all. If I have to collect rent I'd rather have someone else. So much depends on local custom.

Posted: 02/07/2008 at 10:54AM

Same here, labor just cost to much. I will say, I will not build a fence ever again, too much labor involved. Removing old fence and taking to dump, carry new lumber and cement to backyard, digging and installing, in the end I don't think I saved money, just a piece of mind knowing the job was done right.

Posted: 02/23/2008 at 05:20AM

I have managed a portfolio of 7 units (6 properties) in one neighborhood (I should be saying 'hood) on my own. I did all the maintenance unless there was something really major or it required a license.

That was in the past.

I now have property in multiple locations and have property managers for all. Some property managers are better than others. Like some investors are more successful than others. It depends on how you screen the PMs and mange just like the tenant quality depends on how you screen and manage the tenants.

I could not physically manage my investments directly as they collectively cross 11 time zones. I also recognized that I am not all that good at some things. I can be paid $3,000 a day for my technical skills yet I am not worth anywhere near that doing administrative tasks. Call it how my DNA works.

People do not do their own surgery; you find a qualified doctor even if it takes more than one opinion to find someone.

Most people do not repair their own cars. Even fewer fly their own planes compared to taking a commercial flight. Most use lawyers and accountants for what is seen as a required activity but not core to the REI business.

I happen to like working with good PMs. Most of the bad ones are easy to spot when you look at their experience levels.

The key is to do what works best for you. As Mike and a few others note you will pay less in maintenance when you are front and center with the activities. You make on the spot decisions and know who to fix things to a standard that works for a rental. You have more incentive to get it right. At the same time some things just do not save you enough compared to the time they consume.

If someone wholesales deals and makes $50K for a months work being on call to tenants might be much more costly than it first seems.

Keep an open mind. Do what works for you and stick to the plan unless you find a better plan. What worked 10 years ago for you might not be what you should be doing today. Change with your circumstances.

Most new investors start out managing their own. As Mike might say they do so because they misunderstand how to buy so they can not afford to hire a PM. They pay themselves nothing to be the PM as they have nothing left over each month. Some grow to a stage where they hire it out. Many burn out dealing with tenants and exit the business rather than outsourcing the task that is causing them all the headaches.

Consider your options carefully and do not forget that your time has to be worth something. Even MacDonalds would pay you something per hour so your REI business better do the same if you are the PM.

Posted: 03/02/2008 at 09:22PM

200+ units. I manage all of my rental units. I bought a 16 unit building that was professionally property managed and was 25% vacant. after purchase I was able to increase rents 25% and achieve 100% occupancy. Another 12 suiter I purchased was 100% full at ridiculously low rents and property management subcontracts at ridiculously high rates with hardly any cash flow. After take over I increased rents and reduced expenses producing a nice cash flow. Bottom line... If you have time and are near your properties try to manage them yourself. If you have no time and want to risk having a property management mismanage your property you may have no choice. There may be good property management companies out there but DO YOUR RESEARCH and monitor their progress.

Posted: 03/03/2008 at 07:00AM

I currently have a property manager that is great and I will continue to use him. I have managed my own properties (15 SFR) and although I do enjoy it, it is very time consuming. Having my time leveraged for other projects is important to me.

I have also had a bad property manager that kept all deposits, would not answer tenant concerns and would not do maintenance with out tacking on an extra 10% to each bill for himself. I have learned that your property manager should be screened in more depth than your tenants.