I understand the value of a good real estate agent, mortgage broker, GC and real estate attorney, but are property managers worth it? Ive called and emailed some of the property managers in my area and never been able to speak with someone over the phone (red flag). Ive received canned email responses, too. Im willing to pay someone the 50%-65% of a first months rent to get a good tenant in there, but not sure if I can justify the 8-10% fee per month. What is everyone elses opinion on this?
@Jason Prendergast I am a real estate broker and own several rental properties. I don't manage my own properties. I think my property manager is worth EVERY penny! I like having a "middle man" because I am too nice :) I feel sorry for people when their dog dies or they get all of their teeth knocked out in a car wreck (true story) and can't pay on time.
Also, on a more serious note, my property manager has processes in place to handle tenant screening, rent collection, maintenance calls, late payments, walk-thrus, etc. And, she is very knowledgable about tenant/landlord laws and attends meetings to continually stay on top of it.
Eight to ten percent per month is pretty standard. When you consider they handle all tenant issues and any hassles that arise. They also will handle eviction procedures on your behalf (legal fees are not included). A good PM performs a careful screening of each applicant, keeps excellent records and can offer tenants some incentives. He/she protects your identity as well.
Many novice investors are tempted to manage their own properties. Some do very well others not so much. It's a headache to be sure and one you can avoid altogether by choosing a reputable PM to do all the leg work for you.
My PM is worth every penny. would not manage my own properties
I originally thought about managing our own properties, but we are going to definitely us a PM. This will allow us to focus on other things, like finding more properties, while the PM handles all that goes into renting our properties.
We manage the triplex we own locally, but have a PM for the fourplexes we own in AZ. I'm a bit of a control freak, so I want to be making the decisions on everything. Also, my parents have been landlords since before I was born, so I grew up with it, learning how to answer calls about a unit they were advertising, etc. I can understand someone who knows nothing about landlording being a little hesitant about it.
Our AZ PM is pretty good, pretty accommodating about keeping us informed and letting us make decisions.
Seems like the majority here really likes a PM.
I ditto what Kim H says. My life is so much better now that I have a good PM.
@Jason Prendergast You really need to have a complete "team" to manage your real estate assets properly. Think of it like this: The agent holds your hand through the acquisition phase of the property (2-4 weeks). Your contractor holds your hand during the rehab phase (6-8 weeks). The property manager holds your hand for the rest of the life of your property (1-30 years). You need a good property manager!
Excellent points. Thank you all.
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