Self Managing vs Property Manager Landlords?
Hello,
I'm weighing my options. I currently have 8 single family rentals. My question is, at what point have other members used a licensed property manager, if ever?
__ professional management from the start
__ 2-5 units
__5-10 units
__10-25 units
__25-50 units
__50-100 units
__ more than 100 units
__ still self managing with over 100 units
__ Never (will ALWAYS be self managing)
@Jake Oreskovich - I transitioned to property management when self-managing 5 units with a full-time job got to be a little too much. I then immediately bought another duplex, to justify the expense of the management company. So it was 5-7 units that I made that switch. Now that I have more units, I am considering going back to self-management, with some systems in place to take care of things as they come up. I am testing those systems on 3 units right now, and if it works out, I might go back, and save the thousands of dollars a year I am currently paying management.
I prefer to use property management here in Detroit.I don't mind giving up 10% per rental to avoid all the problems with the tenants.
A good rule of thumb posed to me by a well-respected investor & property manager is:
- Less than 100 units – Self-Manage
- More than 100 units – Property Manager
There are certainly anomalies on both ends of the spectrum, but I've found that to be a sound template.
At 8 units, you're giving up a large chunk of cash, and that property manager went so far as they won't take an owner's portfolio if they don't have more than 100 units because they believe owners are better off doing it themselves. Talk about conviction to a methodology haha.
