Rental Property Investor · Dallas, TX · Member since 2019 · 27 posts · 5 votes
6y
Right, the only thing is that I intend on moving out of state and won’t be able to be in town to manage it myself. I’m thinking Perhaps a traditional property management company could work better for my given situation. Any feedback is welcome.
Real Estate Agent · New Orleans, LA · Member since 2014 · 52 posts · 21 votes
6y
@David Sosa you can manage it remotely. Get a good cleaning crew and handyman. The rest can be accommodated with technology. Everyone you need can be a phone call away. I’d suggest managing your rentals yourself until you are comfortable with cash flow.
Flipper/Rehabber · San Francisco, CA · Member since 2017 · 176 posts · 70 votes
6y
@David Sosa
We do property management for other owners in the Bay Area. To my knowledge, we charged the least at 15-18% of gross profits. I hear of local property management companies charging from 15-30%. We charged low at first at 10% because we didn’t know what the market rate was for property managers.
Property Manager · Columbia, SC · Member since 2017 · 121 posts · 163 votes
6y
We manage a few properties, but I agree with others that it's not too difficult to manage, and you should do that if you can.
If you definitely want to hire someone to take it completely out of your hands, there are STR specific managers out there that range in fee from 15-30%.
For our own properties, I personally wouldn't have much meat on the bone at 30% of revenue PM. I think as the competition heats up in STR property management, the competitive rate will end up being closer to 15-20%. As others have mentioned, once you have the right systems you can make the management side very efficient, so competition will ultimately drive the rate & margins down.
Specialist · FL · Member since 2017 · 139 posts · 88 votes
6y
@David Sosa I'm a manager and had someone manage my own rental too.
Pros- zero calls, messages about your rental unless an emergency. Never have to communicate with guests, cleaners, handymen, etc. I typically recommend for anyone with a stressful full-time job or just can't be bothered being owner/operator and keeping up with the industry trends. It's not for everyone so don't feel forced into thinking you have to do it on your own. Property managers are in business for a reason.
Cons - giving up profits which is inevitable. Finding a PM that will take care of your rental like their own home.
Rental Property Investor · Dallas, TX · Member since 2019 · 27 posts · 5 votes
6y
@Isaac Moore
That’s great Isaac I’m glad you are experiencing success with your property along with your property management company. Which one are you using if I may ask?
Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
6y
@David Sosa, check with Solo 401k providers. Investors with retirement plans, especially Solo 401ks and IRAs can t manage their own properties if held in a retirement plan or it will generate UBTI. Therefore property owners ,retirement account investors ,lease at 8-10 CAP rates. Lease payment/property value= cap rate in this scenario. A 10 CAP= $20,000 lease payment on a 200k property. Taxes, insurance and maintenance are negotiable items in the lease.
Find a property manager who has experience and confidence where they will sign a lease and pay you fixed amount.They also furnish the property to achieve highest occupancy.
If you are a person/professional who values your time and does not want to spend free time running a STR/STVR business hire a manager who will lease from you. Have them pay all RE taxes, insurance, and maintenance. Sit back and collect your checks.
Property Manager · San Francisco, CA · Member since 2017 · 74 posts · 71 votes
6y
We are a property management company in the San Francisco Bay Area focusing on furnished rentals and multi-family buildings. We charge 15% to 20% of the gross rent for short-term furnished rentals. We can do 12% to 15% for Corporate rentals which we define as 30+ day minimum stays.
If you have the time and interest and only have 1 or 2 units then I agree with most of the others in this thread you might not need a property manager. But I will point out the obvious which is managing short term rentals is very management intensive compared to normal unfurnished rentals and frequent engagement with each guest is common even with automated messages.
Most of the people who hire us either have multiple units or if its just a single unit or house they work full time and do not have the time nor inclination to track all of the details needed such as making sure the unit is properly cleaned between guests, managing stocking of supplies, changing remote batteries, keeping sheets and towels fresh and most important of all being available on a moments notice if there is a problem.
The platforms like AirBnB weight the guest reviews very heavily in how your property is ranked so positive guest reviews are directly correlated with the amount of money the unit earns each month.
But having said all that I would recommend managing yourself if you have the time and energy - it can actually be a lot of fun!
Rental Property Investor · Houston TX / Tacoma WA. · Member since 2019 · 166 posts · 89 votes
6y
@Ken Latchers when you want to scale and remove yourself from the picture then property management is the solution.
I 1st started on Airbnb by becoming a guest and the host was getting married so I started taking care of the place for a small amount of money, since the owner was cash flowing net of about $2.5k a month he wanted to scale it but he is extremely smart and was working on finishing his PHD he did not have time to take care of the place, so we opened another location and I was getting 20% + rent.
Today I no longer work for him since I did all the cleaning and got worn out, but today he has 5-6 units and he since then moved out of state and has his manager do everything.
Rental Property Investor · Houston TX / Tacoma WA. · Member since 2019 · 166 posts · 89 votes
6y
BTW I'm looking for a property manager in Houston for my unit.
I'm okay with having a job as a property manager, but I don't want to manage my own place because it becomes less of a business and more as a hobby, and it takes time away from expansion.