Investor · Maui, HI · Member since 2012 · 232 posts · 96 votes
10y
I liked starting out with managing my own properties for a few years. I changed many kitchen faucets and even a few toilets. It gave me the knowledge about what it takes to manage a rental so I can better manage my managers. But, it depends on your situation. Would you be able to manage your manager?
Professional · Smyrna, GA · Member since 2015 · 14 posts · 2 votes
10y
Hi Brianna,
Property management includes the handling of property that is possessed by another entity or party. Property manager plays significant role on behalf of the owner to preserve the value of the property while generating income.
There are many advantages of signing an experienced real estate manager:
Manager is responsible for finding tenants for you
They have wide network of marketers
They can advertise your property on your behalf
They can act as a problem solvers for the landlords by collecting rents
Managers have all the knowledge about existing and changing laws and regulations
There are various other advantages of property management services. Though, the services realty managers offer are little expensive. Rather than disadvantages property owners should acknowledge the benefits this can bring to their businesses.
Investor · Maui, HI · Member since 2012 · 232 posts · 96 votes
10y
I liked starting out with managing my own properties for a few years. I changed many kitchen faucets and even a few toilets. It gave me the knowledge about what it takes to manage a rental so I can better manage my managers. But, it depends on your situation. Would you be able to manage your manager?
Rental Property Investor · San Diego, CA · Member since 2015 · 96 posts · 59 votes
10y
One important thing:
The difference between being at market rent vs $100 or $200 below market rent only costs a property manager max $20 per month. Yet the property is much easier to keep rented or re-rent, hence much less work for the property manager.
I've taken over a number of buildings where various property managers have habitually kept things below market. I'm sure they try and justify it with a reduction in vacancy expense argument. However, that math doesn't pencil out.
Investor · west seneca, NY · Member since 2014 · 376 posts · 211 votes
10y
property managers can be very useful, especially to out of state investors. obviously, living in a different state puts the owner at a serious disadvantage to knowing what is going on with their properties at all times. thats where the property managers come in. their job is simple for the most part. keep the tenants happy while keeping the owner happy. that requires providing good housing at a fair price and maintaining a certain level of expectation for the tenant. of course the property manager gets paid to do that, but too may property management companies are ripping people off buy saying a property is vacant when it isn't, charging for repairs that were never done or needed, and over charging for services. you have to watch out for these people. there are a lot of them. when you find one that does what they are supposed to do and doesn't rip you off, keep them. you have found that rare manager. you have to shop around and do your home work when looking for a property manager. unfortunately, you will probably go through many before you find that right one. i suggest a good real estate attorney. ask them who they have had the LEAST amount of court time with. any property manager that is decent and doesn't rip you off, hasn't spent a lot of time in a court room against the other attorney.
Residential Real Estate Broker · Cody, WY · Member since 2011 · 10 posts · 3 votes
10y
Brianna, I am a licensed REALTOR and property manager with 210 rentals, mostly single-family homes. There are a wide variety of "managers" out there so you will get a wide variety of answers, like the one Doug H. provided above. Yes, there are bad managers that keep rents low, don't deal with maintenance and allow your investment to deteriorate, cut deals with tenants, treat tenants dishonestly, etc. But don't let that dissuade you!
I don't know a single wealthy person that doesn't invest in real estate and the vast majority of them hire property managers. That should tell you something. The key is finding one that is more than a rent collector. I know a lot of professional managers around the country that are really "investment managers" because they work hard to protect your investment and income stream, but they also work hard to improve it! Most of my owners earn more AFTER they hire me than they did before and their properties are usually kept up better.
A good manager not only cares for your investment, they reduce the stress and headaches associated with it. How many times have you heard someone laugh at investments because it's "too much trouble" or they've "heard too many horror stories" and think it's just a fool's game? I hear it from people all the time, including REALTORS. The truth is, it is an excellent investment in any market, as long as you know what you are doing. Too many owners buy a rental and then screw it up by not screening applications or knowing how to deal with tenants that don't pay rent or water the lawn. A professional will have policies and procedures in place to deal with all these scenarios. I am rarely caught off-guard!
The best thing you can do is research what a property manager should do for you. Then take a few of them out for lunch and some Q&A to learn about what local fees and services look like. When it comes time to hire one, be sure to do your research! Look at their management agreement, their lease agreement, various forms, tenant or owner handbooks, etc. Don't judge them just on their price because the most expensive manager may actually put more money in your pocket! Then again, being expensive doesn't mean they are better!
I hope this helps in some way. Feel free to contact me directly if you have more questions.