I would like to have in-house management eventually but I can’t make the number work.

It’s always cheaper for me to hire a property management company unless I’m making $10+ million in revenue or something like that.

How does it cost people less to do it in house before that point?

a single PM employee costs $45k where I’m at. That’s how much I pay my PM company now to do everything for me. 

@Jon Cassle it is worse than you think...........if you pay an employee 45K your cost is much higher. Hiring, firing, training, supervision, fringe benefits (vacation and healthcare) sick days, on and on. If it costs you 45 in salary, total cost is more like 70k. You need about 100 units+ to make it work. 

Originally posted by @Bjorn Ahlblad :

@Jon Cassle it is worse than you think...........if you pay an employee 45K your cost is much higher. Hiring, firing, training, supervision, fringe benefits (vacation and healthcare) sick days, on and on. If it costs you 45 in salary, total cost is more like 70k. You need about 100 units+ to make it work. 

 Even at 100+ units grossing $2 million a year it would cost around $70k for the management company plus you won’t have to supervise employees or rent office space. 

@Jon Cassle I think the only way you could make it work is by being big enough-whatever that number is-or by offering the service to other REIs as well. But then you are in a services business that is hard to leverage. A good PM is worth what they charge.