Should I hire a property management company?

4 Replies

Over the last few months I’ve been managing around 5 properties myself and its becoming overwhelming. I still work a full time job and its taking a lot away from my other projects. I would like to continue to add properties but don’t know if my cash flow really requires it or i just hit a rough patch. Any advice? Any recommendations in Jersey Cit

Sounds like you are finally understanding your time value. I appreciate clients like that because they have a better appreciation of what property managers have to do. Find one in your area of NJ (I am guessing?). We service Central NJ, so we won't come up to JC but look on DuckDuckGo, Yelp or search NARPM as well. 

Ultimately you have to see if it works with your numbers. Like Peter said it sounds like you're beginning to understand the value of your time, and a good PM can get you that time back so you can focus on increasing your rental business's profit. 

A property manager might be a good fit for you, especially if you have a full time job and are looking to add more properties. Run the numbers and see if it would work. Some management companies also offer a la carte services if you only need help in specific areas. What takes the most time right now? Is it communicating with tenants? Repairs? Finding and screening new tenants? See if you can automate or outsource the most time consuming tasks to free yourself up to find your next deal. Good luck!

I would add to the discussion that you have more options than doing everything yourself or doing nothing.  I have 38 units and through a combination of a stay at home mom who responds to texts, emails, calls, and shows properties and a maintenance guy who handles the work load I am able to manage my properties (with a full time job) and not have to over pay for a PM.