Do You Manage Your Property or Hire a Manager?

Multi-Family and Apartment Investing
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Do You Manage Your Property or Hire a Manager?

Zach Knoll
Litchfield, MN · Member since 2023 · 27 posts · 16 votes


I'm curious about your property management approach. Do you handle it yourself or hire a property manager?

Self-Management:

  • Pros: Saves money, offers control, and builds tenant relationships.
  • Cons: Time-consuming, stressful, and needs expertise.

Hiring a Property Manager:

  • Pros: Saves time, provides professional expertise, and market insights.
  • Cons: Costs money, less control, and finding a good manager can be tough.

What about you? Do you prefer managing your properties or hiring a manager? 

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Gino BarbaroPro Member
Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
2y

@Zach Knoll

Great post! We started out self managing, and continued as we scaled. The problem with being vertically integrated is that it will slow you down. We currently have 80 team members on our property management team, and every time we take over a deal, we need to hire staff. Pretty challenging to do, especially during Covid and times of tight labor markets.

We focus on PPU (profit per unit) and are able to manage our properties more efficiently. It all comes down to an investor's goals and what they are trying to accomplish. I've seen a lot of our community members start out with third party, learn their systems, and then bring it in house when they own several hundred units.

I would read the book Small Giants, by Bo Burlingham. It helped us formulate our strategy when we were starting to scale.

Gino

Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
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  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    2y

    @Zach Knoll

    Great post! We started out self managing, and continued as we scaled. The problem with being vertically integrated is that it will slow you down. We currently have 80 team members on our property management team, and every time we take over a deal, we need to hire staff. Pretty challenging to do, especially during Covid and times of tight labor markets.

    We focus on PPU (profit per unit) and are able to manage our properties more efficiently. It all comes down to an investor's goals and what they are trying to accomplish. I've seen a lot of our community members start out with third party, learn their systems, and then bring it in house when they own several hundred units.

    I would read the book Small Giants, by Bo Burlingham. It helped us formulate our strategy when we were starting to scale.

    Gino

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
    6Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    2y

    My wife and I started out self-managing all of our properties. When we hit ten she tapped out and refused to have any dealing with real estate. Fast forward, I own a property management company and have my business manage the properties. I normally tell people to really start considering a PM between 5 - 10 properties, if not sooner.

    [email protected]239-339-3969
    Bartomeo Property Management4.7150 Reviews
    WebsiteView Page
    1Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    2y

    Like most we have done both over the years. A PM can appear costly, but nothing is potentially more expensive than contravening LL tenant law. There is a huge amount to know managing properties and it varies by state and even county. Know the facts and then decide.

    3Reply
  • John Scribante
    Minnetonka, MN · Member since 2021 · 11 posts · 8 votes
    2y

    A GOOD property manager will make you money, not cost you money.  One day turnovers, volume discount on maintenance, faster maintenance response.  Tenants only want respect.  They want fast maintenance and good communication.  That’s it.  To keep tenants renewing leases, give them respect. A good manager can increase rents and lower costs therefore increasing profit to cover the pm cost.  Not all managers can deliver this.

    2Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    Always hire a PM, it's not just time it's also liability.

    2Reply
  • Andy RouschPro Member
    Investor · Mt. Arlington NJ · Member since 2018 · 251 posts · 143 votes
    2y

    Hey @Zach Knoll

    I manage some but I also use a property manager for some properties. It definitely can help add time back into your life and they can be a great source of information on vacancy rates, current market rent rates, etc. 

    The key is to find someone you trust, which is why I recommend using Property Management Finder. It can be found in the “build your team” tab on Bigger Pockets. It helps you find reliable property management partnerships and gives you everything you need to make confident hiring decisions, like:

    Expert Matching: Match with professionals who meet your criteria

    Extra Assurance: Licenses, experience, ratings, reviews, and more that can be cross-checked with BiggerPockets members

    Bonus Content: Receive an essential interactive workbook: “How to Interview Property Management Companies”

    3Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    2y
    Right now I enjoy managing our 61 units.  I am tired of acting as general contractor and managing renovations but we just took on a new partner that is taking over that role.
    2Reply
  • Austin F.
    Investor · MI · Member since 2015 · 227 posts · 478 votes
    2y

    I manage my own properties, I enjoy it. Once you develop systems, and get the hang of it it isn't that hard.

    It all comes down to priorities though. Some people don't want to fuss around making an extra 15%. To me that's a lot of money to spend less than an hour a week texting, calling, and posting ads. 

    1Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    2y

    I self manage my 27 SFR in two states. It's super easy to do and not time consuming. I work full time and consider real estate a hobby on the side. I don't do the work on any houses except cut the grass on two rentals that I rent out by the room. When something breaks, I text someone my tenant's number for them to figure out a day and time to go fix it. Plus it saves me about 30k/year to not use a PM. I'd rather use that 30k to buy another house. lol

    1Reply
  • John Scribante
    Minnetonka, MN · Member since 2021 · 11 posts · 8 votes
    2y

    One more thought… as a professional property manager, we spend thousands of dollars with forensic fraud prevention. Since Covid renters have taken credit hits and have become desperate. For $295, you can buy a fake identity including id, selfie, tax return, utility bills, credit file, even a phone number where someone will verify employment. As a DIY’r odds are you will be a victim of fraud.  Your PM using forensic tools can save you thousands $$
    https://snappt.com/blog/tenant-fraud-statistics/

    https://www.quora.com/Where-can-I-purchase-a-new-clean-ident...

    https://www.safetydetectives.com/blog/dark-web-the-average-c...

    1Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Zach Knoll many investors hire PMCs because they realize they don't have the time or expertise.

    Others, hire a PMC after a major disaster punches them in the face - showing them that they don't have the time or expertise.

    Logical Property Management4.9453 Reviews
    WebsiteView Page
    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    2y
    Quote from @Zach Knoll:


    I'm curious about your property management approach. Do you handle it yourself or hire a property manager?

    Self-Management:

    • Pros: Saves money, offers control, and builds tenant relationships.
    • Cons: Time-consuming, stressful, and needs expertise.

    Hiring a Property Manager:

    • Pros: Saves time, provides professional expertise, and market insights.
    • Cons: Costs money, less control, and finding a good manager can be tough.

    What about you? Do you prefer managing your properties or hiring a manager? 


     depends.
    If local, self manage
    if remote, PM.

    For remote, PM is a must. I don't know I think I have quite a good PM either it's Hawaii's PM or Indiana's PM.

    0Reply
  • Wesley I.
    Investor · San Diego, CA · Member since 2019 · 286 posts · 135 votes
    2y

    @Zach Knoll

    I hire a PM for my out of state and self manage for locals.

    1Reply
  • Dan Marriggi
    Rental Property Investor · Scranton, Boston · Member since 2013 · 100 posts · 40 votes
    2y
    Self manage - Its the no one can do as well as I can - mentality.

    Seems like even the "good" managers have self lives.

    0Reply
  • Chris Rich
    Property Manager · Orlando, FL · Member since 2023 · 106 posts · 64 votes
    2y
    Quote from @Zach Knoll:


    I'm curious about your property management approach. Do you handle it yourself or hire a property manager?

    Self-Management:

    • Pros: Saves money, offers control, and builds tenant relationships.
    • Cons: Time-consuming, stressful, and needs expertise.

    Hiring a Property Manager:

    • Pros: Saves time, provides professional expertise, and market insights.
    • Cons: Costs money, less control, and finding a good manager can be tough.

    What about you? Do you prefer managing your properties or hiring a manager? 


    In a nutshell that's accurate lol.  A few things I'd add though.

    Yes, you can self-manage your property/ properties, about 2/3 of rental property owners do.  But many of them break the law doing it.  Florida for example, many landlords I speak to don't understand Security Deposits.  They co-mingle funds or hold the opinion that it's "my money."    No, no it's not. I've had multiple owners spend the tenant's SD during occupancy for repairs the owner was responsible for and then not have the funds available to return to the tenants. They'll keep deposits when they shouldn't.  Those are just a couple examples. 

    Most self-managing owners that end up hiring us are because of _____, a situation that became so stressful that they see the value in a PM.  Eviction, massive maintenance issue, etc. I've also found that our inspection reports and leases are FAR more detailed than the average one, which protects the property and the owner.  That level of detail comes from experience. 

    Self-managing landlords can absolutely do the job, it's just a matter of to what degree.

    0Reply
  • Becki Warren
    Member since 2024 · 1 post · 0 votes
    2y

    Even though a good, solid property management company is sometimes difficult to find, in multifamily, specifically.  I have seen the difference between owner managed and hiring a management company.  It is no comparison.  Management companies protect owners and are up to speed on the law in their state.  They also have one sole focus & that is to take care of the property, collect rents & stay on top of every day issues that occur.  

    0Reply
  • Dimitrius Kiritsis
    Investor · Carmel, IN · Member since 2024 · 55 posts · 22 votes
    2y

    Hey @Zach Knoll,  considerations for property management depend on valuing time versus money, influenced by financial status and age.

    Outsourcing to a property management team suits those lacking time or desire for involvement but entails costs and relinquishing control.

    Conversely, self-management saves money and offers hands-on experience, suitable for those with time and a desire for control.

    Ultimately, the choice hinges on financial situation, available time, and interest in gaining management experience.

    0Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    2y
    Quote from @Zach Knoll:


    I'm curious about your property management approach. Do you handle it yourself or hire a property manager?

    Self-Management:

    • Pros: Saves money, offers control, and builds tenant relationships.
    • Cons: Time-consuming, stressful, and needs expertise.

    Hiring a Property Manager:

    • Pros: Saves time, provides professional expertise, and market insights.
    • Cons: Costs money, less control, and finding a good manager can be tough.

    What about you? Do you prefer managing your properties or hiring a manager? 


     I manage my own and also mange other investor properties. The bandwidth is the biggest thing on your compacity on managing your own to moving to someone else to not self manage. 

    The McKernan Group4.957 Reviews
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    0Reply
  • Denis PonderPro Member
    New to Real Estate · Yuma, AZ · Member since 2023 · 280 posts · 246 votes
    2y

    All of my long term rentals are managed by a company; I have one property in my hometown and 3 properties OOS.  It's six of one and half dozen of the other.  It all comes down to personal preference.  There are pro's and con's to each, so go with what you want.  Are you good at recognizing BS and calling people on it?  Are you good at holding the line and holding other adults accountable?  Are you able to hear someone's sob story and not have it impact your decision making for your business?  Do you love reading legalese and staying up on laws and changes to those laws?  If so, self managing might be a good fit for you.

    I'm more of a "path of least resistance" person, so if I can pay someone else to do it, I usually will.  I would rather spend my time and energy on something else.

    I got into this for FIRE; self managing properties doesn't align with my goals from real estate.

    2Reply
  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    2y

    @Zach Knoll I manage my 25 units. Occasionally an issue comes up that I don’t know the best way to proceed with and then I post in the forums.

    My self management generally takes less than 5 hours per week. (3 of this is spent driving around each week to check the properties). The only times it takes more time is when I am working to fill a vacancy.

    0Reply
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