management questions for 50 - 100 unit

[Joe Smith]

I have experience in SFR/2-4 unit and have used property managers. I've looked at some much larger multifamily's on loopnet and elsewhere and have some questions:

Mainly - is a resident manager someone I'd have to employ as my own employee, or, could I hire a management company that could then staff that person in my building/complex as THEIR employee? I'm trying to avoid having to deal with FICA, benefits, W2's, etc, and being someone's boss. My wife is a stay at home mom, and for a moment we briefly thought of the possibility of her handling "employee" issues, but, not quite yet.

Do most owners of this size of apartment generally hire employees directly as managers, or do they contract w/companies?

The reason I ask is I've seen a few cashflow analyses posted on various properties in the 50 - 100 unit range that have line items both for property management AND payroll.

I know a couple property managers (including one I use myself for my duplexes) but they seem to deal only with 2-4 unit and small multifamily under 10 that have no on-site manager, and they weren't much help when I asked.

[Joel Owens]

A professional management company keeps detailed reports on those size of buildings.

The bigger you go up in building size the more chance it is professionally managed instead of self managed.

The benefit is usually better records are kept on multiple sets of data for a better analysis when you buy.For keeping this detailed info the seller usually wants a better price as more data can be validated versus a seller who has some data but not all you need so you have to price lower for unknown risk factors.