I’ve been listening to a few podcasts on Land-lording during the early stages of investing in real estate. I’ve heard some investors say that they self managed until they had too many rentals to handle. But others have said they started with a PM. So my question is, at what point should you be looking into hiring a PM?
Rental Property Investor · Batavia, IL · Member since 2018 · 452 posts · 672 votes
7y
@Tyrell D Bradshaw This is highly specific to the person. Some people want to manage all their properties because it saves money and gives them more control over the property and the tenants that reside in it. It is much easier to self-manage properties near your home where long-distance landlording requires good systems in place and a local team to help you out. Self-managing is more active where having a PM is much more passive and you are less involved in the day-to--day. It's all personal preference. How involved do you want to be and how much time do you want to spend on your properties? Some people love being a landlord, some people don't. It's all what works best for you and aligns with your goals.
Professional · Huntsville, AL · Member since 2015 · 40 posts · 25 votes
7y
I had a client who 'house hacked' a quadplex and I recommended using a PM. They lived in one unit and the other 3 units were rented. The other tenants never knew that my clients, their neighbor, owned the property. In my opinion keeping a professional distant is one of the most important aspects of owning rental property and something a PM facilitates. What I have found is that tenants are more likely to pay rent in full and on time when they are paying a PM as opposed to 'the landlord'.
Investor · Green River, WY · Member since 2017 · 122 posts · 59 votes
7y
@Tyrell D Bradshaw if you have the time and ability I would suggest self managing at first. You will more motivated to rent and manage the property than a PM will be. You’ll learn a lot about the business, housing, and yourself.
People on here can help you when you need it.
When it makes sense for you to use a PM you should do that, knowing how to leverage other people’s time is a valuable skill to have.
@Tyrell D Bradshaw if you have the time and ability I would suggest self managing at first. You will more motivated to rent and manage the property than a PM will be. You’ll learn a lot about the business, housing, and yourself.
People on here can help you when you need it.
When it makes sense for you to use a PM you should do that, knowing how to leverage other people’s time is a valuable skill to have.
And despite my posting, I must say, I learned a lot and exactly what I wanted out of a PM by self managing first. However, self managing first did hold us back several years, since I had to "sell" the wife, and the initial experience wasn't good.
Rental Property Investor · Madison, AL · Member since 2015 · 177 posts · 110 votes
7y
@Tyrell D Bradshaw I personally started investing out of state in the community I grew up. I did not use a property manager as many of them charged extremely high fees and were unresponsive. What I did do was read Mike Browns Landlording on Autopilot and implemented some of the systems he had in place. One thing I got from the book is to run the rental as a business. This meaning having roles in the business and one of yours would be the property manager. Don't tell tenants you are the owner however you are the PM and have to consult with the owner on decisions. It enables you to past blame onto someone else. With that if you are afraid to charge a late fee or evict someone property management may not be for you so hire a professional.
So I the property management job ended up falling through due to the owner not having consistent work flow for me. I did start working for a wholesaler though and have learned a ton of great things. I’m planning on purchasing my first property soon (via private money). The guy I work for has recommended me a banker he uses and gave me his contact. He recommends I speak to hombre and have my credit analyzed. Not sure if I want to house jacks it or just rent it out. I’m leaning more toward renting it.