Property Managers with In-House Contractor VS No In-House?

Question

Hey Everyone! Is it better for an investor to have a property management company that also does rehabs or should the roles be held by separate companies? Also, is it better to have a property management company that only focuses on multi-family homes if that is what I'm interested in buying? Thank you.

Peter Tverdov · Answer

@Rodney Burayidi I don't think it matters if they can do project management or not. It helps (we offer it and are damn good) but it shouldn't be a requirement. Sometimes owners will want to get other bids than what we provide and that's fine with us but that means they're also managing the project themselves.

As for specialization, yes I would say that's important. You want someone who is focused on MFH if that's what you have, just like if it's a HOA community you'd want someone who focuses on that. My company focuses on SFH, 2-4 MFH, 5-30 MFH and small commercial. I wouldn't take on HOA or condos or industrial because we don't know it well enough.

James Wise · Answer

In house is typically cheaper, faster, more efficient & has a higher product consistency.

Alexander Felice · Answer

In house is better if they are competent at both.

In-house is worse if they aren't great because now you're tied to the same sub-sufficient vendor for two jobs.

as for the multifamily question, it depends on the size. 50+ units, yeah you'll want someone who specializes. 1-20ish units it shouldn't matter much (as long as they can handle the volume)

Rodney Burayidi · Answer

This is all very helpful information. Thank you.

Rodney Burayidi · Answer

Thank you for your insight!

Property Managers with In-House Contractor VS No In-House?

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