Is property management a good business?

Question

Is property management a good business?  It seems like the revenues should be up over a 5 year period because rents are up.  At the same time, costs have not changed must or are lower.  Any thoughts?  At what point, would an investor be wise to own or co-own a prop management company?   How many doors ( B or C) can I person manage?  How many people to run a prop management successfully?

Michael Smythe · Answer

@Christie Gahan most PMCs are built on their PMs handling 75-150 doors each.

You usually need a minimum of 100 doors to make a living as a one-person PMC.

It's also an all or nothing business. Meaning you have to work 50-70 hours/week to make that living. It does scale down as you can afford to hire more people to offload to.

Christie Gahan · Answer

I hadn't thought about insurance!  You must need like every kind of liability insurance there is!

Thanks for the input.

Kim Meredith Hampton · Answer

Christie

Actually it’s almost the opposite! I own a long and short term management companies. Our management fees have never ever changed in 30 years😳, but our expenses have quadrupled over that time. The only way you make money for pennie’s on the dollar for everything you do, is by quantity of accounts. The insurance; general liability, E & O, employment practices, cyber, criminal, non hired auto policy and the list goes on and on………