Do I have to have a property Manager
Member since 2020 · 14 posts · 1 vote
Do I have to have a property Manager
Most Popular Reply
Eric FernwoodBusiness Member
Realtor · Las Vegas, NV · Member since 2014 · 995 posts · 1k+ votesHello @Jeff Shivprashad,
I do not know whether the county or city where the property is located requires you to use a property manager. I do know that most investors cannot afford to manage their own properties.
Many people think a property manager just collects rent. That is not the biggest value. The real value shows up before the lease is signed and after problems start.
Here are the three skills that matter most:
1. Property selection: A good property manager helps you avoid bad deals. The manager we work with is part of our property evaluation team, and about 1 in 10 properties are rejected. In one case, a property looked solid on paper and in a good area. The manager stated the floor plan as hard to rent. I checked the data. Similar homes rented in about one month, that floor plan took closer to three. That one decision likely saved the client thousands.
2. Tenant selection: This is the biggest value. I have worked with investors for over 17 years and delivered more than 600 properties. I have met many managers, but only two that I trust with tenant placement. The goal is simple, place tenants who stay for years, pay on time, and take care of the home. That outcome is not luck, it comes from experience, screening, and judgment. Most self-managers do not have that.
3. Contracts: Self-managers often download a lease online. That is risky. Laws change, and a weak lease can leave you exposed. A property manager uses leases that stay current with local rules. Also, they know how to enforce the terms of the lease, if necessary.
4. Maintenance: Doing your own repairs sounds efficient, but it often is not. Some issues are urgent. Others require skills or pricing you do not have. We had a client get a $4,000 quote from a “friend” for a water line replacement (between the house and the street). The property manager got it done for $1,800. Speed and vendor access matter.
I want to emphasize “good” when it comes to property managers. I would describe most property managers as overpaid, underskilled, inefficient rent collectors. I only know two property managers in Las Vegas that I trust with my properties. We work with one regularly, and the other is a backup if our primary property manager goes bad. If anyone is interested in a guide I wrote on how to select a good property manager, reach out.
When does self-management make sense? We have a European client with three properties in Las Vegas. They wanted to save the 8% fee by managing the proeprties themselves. I advised them to let the manager place the tenants and run the properties for the first year. If the tenant performed well, they could take over management. They followed that plan. After one year, they started managing two of the properties. The third property had a poor tenant (the couple went through a divorce, the wife stayed in the property, and she was an erratic payer), so we did not renew her lease. The property manager found another tenant who performed well, and at the end of that year, they took over managing the properties themselves.
I stand by my statement that no owners can afford to self manage.
FERNWOOD Team, KW VIP Realty520 Reviews
13 Replies
- 5moJason WrayPro MemberBanker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
No just use a 3rd party to collect rents like Baseland or Turbo Tenant. Use Facebook Market place or Bigger Pockets to find a Handy Man/Woman to help quick fixes if the home is older when it comes to leaky faucet, toilet issues, lawn care etc.
If this house is pretty much turn key your in a safe place in most cases and maybe even offer a discount to rent if renter mows the lawn.
- Member since 2020 · 14 posts · 1 vote5mo
Hi Jason, Thanks for the reply. Yesterday I was told by a Health Officer in Wilkes Barre that I have to have a Property Manager because I live more than 20 miles from the property. I do all my maintenance work myself, nevertheless I have a local Plumber there in case of an emergency. I am there every other weekend. I have a guy who cut the grass, who send me before and after videos. I have 3 properties there so I set aside every other weekend to be in the area. However The Officer cannot tell me where to find the ordinance that states that I have to have a property manager. I am not sure if he is making this up. I do not think anyone else would make a better property manager than me. I answer my phone even at 13 O' clock in the night. Thanks again
- 5moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Jeff Shivprashad:
Hi Jason, Thanks for the reply. Yesterday I was told by a Health Officer in Wilkes Barre that I have to have a Property Manager because I live more than 20 miles from the property. I do all my maintenance work myself, nevertheless I have a local Plumber there in case of an emergency. I am there every other weekend. I have a guy who cut the grass, who send me before and after videos. I have 3 properties there so I set aside every other weekend to be in the area. However The Officer cannot tell me where to find the ordinance that states that I have to have a property manager. I am not sure if he is making this up. I do not think anyone else would make a better property manager than me. I answer my phone even at 13 O' clock in the night. Thanks again
Because they are tired of dealing with absentee owners who neglect their properties, many cities have passed ordinances requiring an owner to have a legal, local representative. THis party will be responsible for any city requirements and can be ticketed, fined and even threatened with jail for noncompliance.
You can hire/pay a PMC to do this, or an attorney, accountant or other business professional.
You can also try to take advantage of a handyman, or other ignorant party, and have them legally liable.
Logical Property Management4.9458 Reviews
- CPA| New Clients Welcome| 50 States · Member since 2016 · 435 posts · 93 votes5mo
@Jeff Shivprashad, hi. No, you don’t need a property manager just for being out of state.
You do need to register the rental, get a license, and pass inspections.You can self-manage, but being out-of-state adds risk, so some investors choose a manager later.
- Member since 2020 · 14 posts · 1 vote5mo
Recently my Tenant did some subletting and later the power and water was shut off. The bills were in their name. Health officer came there and had everyone leave the house and put a notice on the door. Later on in the week I met with The Health Officer, and he made me sign a letter that I have to agree to have a property manager because I live outside of a 20-mile radius. He quoted me an Ordinance 7-354B, however that ordinance have to do with a boarded-up or vacant property. Not too long ago I got a call from my tenant at 2AM in the morning that I had a busted water heater. I was there at 6Am, and water heater was installed by 9AM. I doubt weather a property manager would have been able to accomplish that so fast.
- 5moEric FernwoodBusiness MemberRealtor · Las Vegas, NV · Member since 2014 · 995 posts · 1k+ votes
Hello @Jeff Shivprashad,
I do not know whether the county or city where the property is located requires you to use a property manager. I do know that most investors cannot afford to manage their own properties.
Many people think a property manager just collects rent. That is not the biggest value. The real value shows up before the lease is signed and after problems start.
Here are the three skills that matter most:
1. Property selection: A good property manager helps you avoid bad deals. The manager we work with is part of our property evaluation team, and about 1 in 10 properties are rejected. In one case, a property looked solid on paper and in a good area. The manager stated the floor plan as hard to rent. I checked the data. Similar homes rented in about one month, that floor plan took closer to three. That one decision likely saved the client thousands.
2. Tenant selection: This is the biggest value. I have worked with investors for over 17 years and delivered more than 600 properties. I have met many managers, but only two that I trust with tenant placement. The goal is simple, place tenants who stay for years, pay on time, and take care of the home. That outcome is not luck, it comes from experience, screening, and judgment. Most self-managers do not have that.
3. Contracts: Self-managers often download a lease online. That is risky. Laws change, and a weak lease can leave you exposed. A property manager uses leases that stay current with local rules. Also, they know how to enforce the terms of the lease, if necessary.
4. Maintenance: Doing your own repairs sounds efficient, but it often is not. Some issues are urgent. Others require skills or pricing you do not have. We had a client get a $4,000 quote from a “friend” for a water line replacement (between the house and the street). The property manager got it done for $1,800. Speed and vendor access matter.
I want to emphasize “good” when it comes to property managers. I would describe most property managers as overpaid, underskilled, inefficient rent collectors. I only know two property managers in Las Vegas that I trust with my properties. We work with one regularly, and the other is a backup if our primary property manager goes bad. If anyone is interested in a guide I wrote on how to select a good property manager, reach out.
When does self-management make sense? We have a European client with three properties in Las Vegas. They wanted to save the 8% fee by managing the proeprties themselves. I advised them to let the manager place the tenants and run the properties for the first year. If the tenant performed well, they could take over management. They followed that plan. After one year, they started managing two of the properties. The third property had a poor tenant (the couple went through a divorce, the wife stayed in the property, and she was an erratic payer), so we did not renew her lease. The property manager found another tenant who performed well, and at the end of that year, they took over managing the properties themselves.
I stand by my statement that no owners can afford to self manage.
FERNWOOD Team, KW VIP Realty520 Reviews - Member since 2020 · 14 posts · 1 vote5mo
Thank You Eric. Does your company operate in Wilkes Barre Pa?
- 5moMelanie ThomasBusiness MemberReal Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 489 votes
Not sure if it’s legally required in your area, but you absolutely need one!
Property managers are worth their weight in gold, especially as you start to scale. At some point, you won’t want to be in the weeds handling this stuff yourself and honestly, you shouldn’t be.
There are a lot of legal landmines people underestimate. Security deposit handling, proper notices, fair housing compliance, code requirements, vendor oversight… it adds up fast. What you don’t know will cost you, and usually at the worst possible time.
I own several rentals and also operate a large single family portfolio, and I’ll tell you straight up, the systems and risk mitigation alone are worth it. A good PM doesn’t just save you time, they protect your asset and your bottom line.
If you plan to grow, build it the right way from the start. Good luck & happy investing!
RentWerx Property Management4.73300 Reviews- Rental Property Investor · Member since 2019 · 411 posts · 148 votes5mo
Quote from @Melanie Thomas:
Not sure if it’s legally required in your area, but you absolutely need one!
Property managers are worth their weight in gold, especially as you start to scale. At some point, you won’t want to be in the weeds handling this stuff yourself and honestly, you shouldn’t be.
There are a lot of legal landmines people underestimate. Security deposit handling, proper notices, fair housing compliance, code requirements, vendor oversight… it adds up fast. What you don’t know will cost you, and usually at the worst possible time.
I own several rentals and also operate a large single family portfolio, and I’ll tell you straight up, the systems and risk mitigation alone are worth it. A good PM doesn’t just save you time, they protect your asset and your bottom line.
If you plan to grow, build it the right way from the start. Good luck & happy investing!
The legal landmines you speak of will still have an owner liable regardless of PM in place or not. The owner almost always gets named on any situation.
- Rental Property Investor · Member since 2019 · 411 posts · 148 votes5mo
Quote from @Jeff Shivprashad:
Do I have to have a property manager for my 2 single family rentals in Wilkes Barre if I live in New Jersey? I cannot find any ordinance. Please help.
Manage remotely. Find 2-3 local vendors for everything. Handymen, electric, plumbing, RE agents etc... you'll have to manage your property manager anyway.
- Washington, DC · Member since 2025 · 19 posts · 6 votes5mo
there are ALOT of variables that go into this.
The right answer is - whatever works for you!
I know 99% of investors who have a property management. It only makes sense if you have multiple properties and the biggest culprit is time!
If 10% is worth your time, then pull it! I would! - 3moGarrett CrosbyPro MemberReal Estate Agent · Los Angeles, United States · Member since 2021 · 392 posts · 162 votes
Jeff, Drew is right on the legal piece — cities have been passing these absentee owner ordinances for exactly the reason he mentioned. The 20-mile rule isn't uncommon in PA municipalities. The fact that the officer couldn't point you to the specific ordinance language for that restriction is worth following up on with an attorney, because it sounds like there may be some confusion on his end about which ordinance applies.
That said, even if you're not legally required to have a full PM, you may want to designate a local "registered agent" or property contact — could be a local attorney, handyman, or trusted person. That satisfies most city requirements without handing full management over. Some municipalities just want a local responsible party they can reach.
On the self-management side — the fact that you were there at 6AM with a new water heater by 9AM says everything. That's real ownership. A lot of PMs can't match that response time. Get an attorney to look up the actual ordinance language and clear this up before you get into any compliance bind. Feel free to DM if you want to talk through how to structure it.
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