Would it be wise to hire family to manage a property?

Question

Hello! New to BP and RE Investing. I'm currently studying for my license here in California but I am looking into more affordable markets to get started as an investor. Ideally I would like to buy and rent to start with. Since California seems to require far to deep of pockets than what I currently have, I have been looking into Phoenix, AZ.

Another reason I have been looking there other than the cost of housing there, is that my parents are looking to retire in that area. My father has worked in home appliance repair for over 30 years and is a very savvy doit yourself-er. I was wondering would it be feasible to hire my parents as my Property Management team/my dad as my Handy-man for my properties?

Not that it would necessarily save me money, but it would be nice to have two of the most trust worthy people I know on the front lines with me and in the area where my properties will be since I'll remain living in California. Thoughts?

Thank you for all the advice ahead of time!

Bryan Glaser · Answer

All good info, I believe yes I could handle much of the managing roles at least on my first property. Its just a nice, extra little perk that he has the experience as a handyman and my parents will most likely be in the area I invest in. Thanks all for the tips!

Sibbir Noman · Answer

@Bryan Glaser

Hi Bryan - If your dad can be your handyman then I'm not sure if you even need him to play the property manager role. These day you can do advertising, screening, collecting rent online.

Fred Heller · Answer

Have you checked the real estate laws regarding property management in Arizona? I hear they're a little quirky compared to other states.

Jerry W. · Answer

Welcome to BP @Bryan Glaser . The only down side I see in this picture is experience. Your dad could probably go fix problems as they come up, but how many tenants has he screened? The screening and interview process is very important. Maybe you could work with a professional, like a property management company to place a tenant and have your dad be in charge of all repairs? One bad tenant can really mess up your investing plans and interest in doing real estate investing. Have them sit in on the interviews and get a checklist of what to ask, how to vet tenants by calling prior landlords and verifying work history, etc.

Would it be wise to hire family to manage a property?

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