Self-manage or hand it off?

Question

You've got three rentals. Do you keep managing them yourself to protect every point of margin, or pay a property manager 8-10% so you never take another midnight "the water heater exploded" call?

Where do you land, and what made you choose your side?

Stacy Raskin · Answer

It depends on how involved an investor wants to be but if tenants are well vetted long terms tenants and the property is in good condition, then there may not be a whole lot of ongoing work. Also, it can be difficult to find a good property management company so if you don't have a good property management company that can cut into profits. For example, if property management doesn't screen tenants thoroughly or respond to tenant maintenance calls in a timely manner that can create lost income either through unnecessary costs such as evictions, longer vacancy times or good tenants leaving because they are not satisfied with the repair response time for property repairs. If an investor does self manage, it's important to know the state, county and city landlord tenants laws as those laws can impact rent increases etc. It depends also if the investors lives near the properties or not. An investor can self manage and a property manager can be a great team member if it's the right one.

Michael K Gallagher · Answer

generally feel like there are enough tools out there now that even out of state "self managing" can be just as "hands off" as traditional management.  Especially if you are in the LTR space and in B and A areas with high demand, all you need is a couple decent vendors, an online rental portal and a leasing agent on the ground.  there are great managers out there don't get me wrong, but generally and especially just starting out, no one cares about the property and the investment like you do.  and its worth doing at least for a season or cycle so you can speak to your manager more intelligently.

Steve Elmer · Answer

The question is not properly formed.  Unless you manage the manager like you would the property, it’s going to be more than 10%.  Maybe a lot more.  Calculate the full cost including fees, excess maintenance costs, and lost optimizations because they don’t care the way YOU do.

Brittney McIntire · Answer

I feel this is very subjective to a person's goals. Three is not a whole lot to manage but if time is something important to you then the 8-10% is worth it. Time is valuable and I feel my time is better spent on building my portfolio, building my career or spending it with family and it is a good trade off. However if you are in a place where the time it takes to manage these three properties is worth the money saved then it is worth it to do it yourself and even use AI to assist.

I have an airbnb that I manage myself since it does not take much of my time. I use AI to help with a lot and a I have a great cleaner who does a lot for me as well. I do believe that when I do get to a certain amount of airbnb's I will gladly hire a PM company so my time can be spent elsewhere.

V.G Jason · Answer

Self manage is the best if you're looking to make a low hourly rate, open yourself to liability, and be in pursuit during emergencies.

Denise Supplee · Answer

I think for most investors, bringing in a property manager once you have multiple units can be worth it. The 8–10% fee protects your time and sanity, no more late-night emergency calls, and lets you focus on growing the portfolio instead of putting out fires.

Theresa Harris · Answer

I think it depends on the rentals and tenants.  Long term rentals in good condition in areas with lower turnover and good tenants-self manage.  Where the work comes in is if you have high turnover and 'problem' tenants (eg people who aren't used to living on their own, are hard on things, etc) or even areas where rental laws are complex.

Amit Prasad · Answer

3 might be the sweet spot to self manage, but anything beyond that or any out of state should just be handed off. It's not worth the headache especially if you're in different timezones.

Self-manage or hand it off?

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