Hire Property Manager or Hire Employees?

Question

I have been self managing my properties but now with > 50 units and growing, I am at the point where I need to either hire a 3rd party property manager or hire employee(s) to basically create my own.

Any suggestions for which would be better?

Jim C. · Answer

I looked at bringing someone on board as an "outside contractor" for a period of time (say 60 days) to see how they would fit in. If you did that, I would suggest getting General Liability Insurance as well as Workman's Comp Insurance. That way, if something happens and the "Outside Contractor" didn't have his own Liability or Workman's comp, you would still be covered. My insurance agent says its cheap protection.

I also called a local staffing company and they didn't have a handyperson per se, but only did trades (roofing, painting, etc), which would mean you would have to hire multiple people to accomplish a few simple tasks.

Jeremy Tillotson · Answer

@Andrea Jones the awesome thing about a staffing company is you tell them when you want someone and don't, if just starting u can request people on and off, just don't expect the same person if not full time. I have become a huge fan of them.

Jeremy Tillotson · Answer

@chance

@Chance Cooper yes but I have another post about worker comp dangers, so I hired them through a staffing company while legal and legit I didn't have to mess with payroll taxes and workers comp. Found it to be WAY better than a PM company. Most PM companies make there money on maintenance anyways, and we had that covered.

Jeremy Tillotson · Answer

@Jim Carson @Dan Bosak I forgot to mention its like hiring an attorney dont go for the cheapest person you can find. That another reason I used a staffing company though, they kept sending the people till I found the right one, It took a week and then I gave her a 2 dollar hr raise. I learned to be loyal to my employees, when her car broke down I gave her ours and got another one. Being a single mom, it was needed and what was right. The level of dedication after that was very nice.

Dawn Brenengen · Answer

@Dan Bosak With that many properties, I would hire my own employee instead of a third party company.  You have enough business to keep a single person busy, and you can train them to do things the way you want them done.  I like @Jeremy Tillotson suggestion of a staffing company so you don't have to bother with the tedium of employee paperwork (taxes, insurance, etc).

Jeremy Tillotson · Answer

@Andrea Jones I told them I wanted a office person who learned quickly and was organized. I started paying the firm $12 and hr (she was making $9.00) and bumped it up so she was making $12 after a year, it was costing me $15 an hour, best money ever spent.

Aaron Wyssmann · Answer

@Dan Bosak

This is a great question and good discussion happening around it.  I read your last post about not wanting to manage a manager instead of tenants and I completely agree.  I have been learning lots about this myself and our company.  A book that I've been reading lately is "Start with Why" by Simon Sinek and this whole book is fabulous about building businesses and organizations.  I personally think it would help you get an idea of who it is that you would want to work for you and why, if you decided on the employee route.  If you go the PM route then it all becomes more passive and you have to make sure you are hiring the right company.

Jim C. · Answer

Sorry- Meant Property Manager, not Handyperson, per se

Andrea Jones · Answer

What do you call and ask for? A property manager?

Hire Property Manager or Hire Employees?

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