part of the appeal for going into real estate investing / landlording is to create passive income. to make enough in order to make it matter, i will need to possibly have 20 properties at some point. It seems to me as though I would be back at square one though, having to "manage" all the property. My thought is to get a property management company, in hopes of having to do ... well ... as close to nothing as possible :)
what can/should i expect from a property management company? I am thinking about possibly 75k homes.
I would add one more question to Benolyn's list...
What guarantee will the PM give for tenants they place? For instance if the PM charges one months rent for placing a tenant and that tenant is evicted or quits the lease within a certain period of time will the PM find a new tenant without cost to you as the owner.
The last thing you want is for a PM to be churning tenants.
I agree, our PM employee would not be economical if all he/she was doing was pure property mgmt. Finding new properties, networking our name, finding new investors, lenders and qualified vendors add to the value of our person on the frontline.
Imagine closing an extra of couple $25K profit properties or finding a new investor who will get involved to the tune of $250K. The other intangibles are what makes our system work.