Hire Prop Manger or DIY

6 Replies

Hi everyone,

Buying my first nvestment property. It is a 7 unit building, 100% occupied. Nice neighborhood, many tenets have a long history 5+ years. It's 30 miles and 35-40 minutes from my primary residence.

I have a full time job (sometimes more) operating another business I own, family, etc. and no have experience in land lording or property management.

There is currently a property manager in place that the seller was using. I'm debating keeping them or attempting to do it myself.

I have been reading on this forum n how to be an effective landlord. I do think I have the temperament and attitude on dealing with tenets, firm but fair. And treat it like a business.

The time is what concerns me more. I don't want the 2am phone calls (who does?) or really any calls for that matter needing something. Comes with the turf I know. Naturally you could find repair service or contractors to have tenants contact. And then dealing with filling vacancies. Tenet screening is something I would not look forward to.

Long term, my plan is to be a real estate investor along with other businesses I am involved in. I'm buying this property to test the waters to see if real estate fits me or I fit it. I don't look to become property manger (that could change) if I purchase more investment properties I the future. hat said, I would prefer not to have to pay 6 to 10% to somebody else to avoid some hassles. Seems like a lot if you do have decent tenets.

Looking for opinions now from everybody else' place experience, would you go with a manger or attempt to do it yourself?

Thanks!

Charles,

It can go either way, Sounds to me your already busy in work and other business. You do need to learn the ropes in being a landlord tho, whether you end up doing it full time or not in the future. Maybe what you could do is keep the the management in place for now learn from them for a while see were it takes you then make your decision. Sounds like to me they know what they are doing and no sense in up setting the apple cart at this early stage. There are other variables to think of like, what is the diff in savings if you do it versus the time lost from your other business and the possible stress you may have with your JOB, Trust me nothing like getting a call during work that the ceiling is leaking or the toilet is over flowing. UGH! If your employer is ok with you handling the call or leaving during work then ok. But at the end of the day your goal is to have multiple streams of income coming in at the same time. If you try to do all of it yourself something will lack.

If the place is currently in good working order, clean, and profitable, then I would keep that property manager. You're pretty clear that your longterm goals do not include property management, so you don't really need to immerse yourself in hands-on learning. Don't forget- you'll be working for that 10%, it's not just free money in your pocket. And frankly, could easily lose 10% in revenue if it turns out that you're not that good at it :)

BTW, I have done both, and I love having a PM.

Hi Charles,

My name is Gregory and I am a Property Manager that currently oversees the rental and management of 250 units in New England.

First, since you do not have any experience in this field you are putting yourself at a disadvantage if you decide to do it yourself. Testing the waters would be worth it if you had one unit, but 7 is a lot to deal with. When maintenance issues arise, vacancies come about, evictions become necessary, tenants have disputes, etc. it will be very stressful for you to handle if you are 30 minutes away and have a family, job, and hobbies. Having a property manager take over would be highly recommended.

For example, we use a software called "Propertyware". Here, tenants and owners receive their own online portal. Tenants can file maintenance requests, pay rent, and chat with our staff 24/7. The owner portal has the ability to approve/deny maintenance requests, chat with our staff, and send/receive funds 24/7 as well. At times dealing with everything online (with our 15 employees) becomes stressful, nevermind having to do it via mail or over the phone by just 1 person (yourself).

Also, you mentioned that the tenants have a long-term rental history. Don't count your chickens and think they will stay forever. You need to be familiar with the fact that every tenant will eventually leave; so you must be able to plan accordingly with this.

In addition, there is a great deal of Landlord-Tenant law that you must be familiar with to avoid a myriad of legal issues. Such knowledge can come from studying, but truly comes from being in the field and learning. I don't suggest going into this field (your own property) and learning for yourself; it could be very costly for you.

@Charles Press Welcome. I like DIY then hire an employee/contractor to work directly for you to PM.

PS You go to DIG or ACRE meetings?

Originally posted by @Charles Press:

I have a full time job (sometimes more) operating another business I own, family, etc. and no have experience in land lording or property management.

you answered your own question.

@Mike Hurney - the OP is in Butler, so that would not be near DIG.

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