Iffy about getting rid of property mgt co
Spouse and I own a townhome rental about a mile from where we live. We utilize a property mgt co. There are things the company does that drive me batty. When I get the monthly statement as I am opening it I think "what are they going to take money from me for this month?" The regular management fees are not horrible 8%. But they spent around $100 to fix a leaky sink sprayer. Had I known I would have upgraded kitchen faucet, $75 to change out a light switch...really?.
We opted for the townhome as the price was right. I thought it would be easier to manage IF we did it ourselves, but then hired a co to do the management.
Finding tenants and qualifying them scares me however, I feel I can market it better than they do. (They are in love with the word quaint...shiver, and lovely in their ads)
Do I suck up, get rid of that 8% expense and try to manage it myself? Really hate the thought of midnight calls which I don't think ever happen, but really want to be in the loop of what is going on in my property and if something happens want the opportunity to upgrade for a little more than repair.
We are hoping to move into the townhome when kids graduate and make our primary home our rental.
Thank you for any info/advice you can provide me.
Most Popular Reply
Here is how I solved my time management concerns with my rentals. Lease with Option to Buy. The option is not exercised until I received 100 percent of the purchase price and all lease payments, fees, services charges, etc. due at the time the lessee wants to exercise the option to buy. The agreement states the lessee is 100 percent responsible for all maintenance and repairs. If the P-trap leaks, they you fix it.
This reduced my management to making bank deposits. I love making bank deposits. I had more time to focus on more investments.
It also helped me to rent the places faster and find better tenants. I continually stressed they are buying their home.
For those investors who are worried about the property being bought and losing the cash flow, in all my time, only one property has gone the distance. Plus, properties need more attention with age, thus, there is a reduction in net income. By rolling the property, there is an opportunity to find newer replacements that need less attention and may provide a greater net cash flow.