Propert manager or wait ?..
Member since 2021 · 2 posts · 2 votes
Propert manager or wait ?..
Most Popular Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes@Edgar Diaz You haven't told us why you hired a PMC to begin with?
Usually, landlords hire a PMC for one of two reasons:
1) No time to properly manage
2) Lack of expertise - and no time to learn
Otherwise, technology makes it relatively easy to self-manage.
If you don't have the time, then hiring a PMC NOW, before buying the next rental, is probably a good idea.
You can "test-drive" this PMC to see if they meet your expectations.
- If not, it's easier to move 1 rental to another PMC versus 2+.
Here's some of our copy & paste advice about selecting a PMC, that you may want to review ASAP to determine if this PMC is the right one for you!
----------------------------------------------------------------------------------------------------------
We’re a Property Management Company (PMC) in Metro Detroit ONLY, with 25+ years of experience, and we’ve seen owners make the same mistakes, over & over again when looking to hire a PMC – which drives us nuts!.
In our experience, the #1 mistake owners make is ASSUMING all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY.
So, owners mistakenly think price is the only differentiator – and look for a PMC like they’d shop for groceries☹
We encourage you to learn from the mistakes of others by reading posts here on BiggerPockets from owners that picked a PMC solely by price and regretted it.
We recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.
Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.
Even if someone gives you a referral, do NOT make the mistake of assuming that just because a PMC met their expectations, they’ll meet your expectations. We all have our own expectations and what works for someone else, may not work for you.
If you’re new to all of this, it's often a case of not doing enough research, as you don't know what you don't know!
So, ask more questions!
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
Here’s some articles we’ve contributed to BiggerPockets about screening a PMC BETTER than you would a tenant!
20 Questions to Ask When Vetting a Property Management Company: Processes
13 Questions to Ask to a PMC: Communication and Documentation
24 Questions to Ask When Evaluating a Property Management Contract
Logical Property Management4.9446 Reviews
18 Replies
- 8moMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
@Edgar Diaz You haven't told us why you hired a PMC to begin with?
Usually, landlords hire a PMC for one of two reasons:
1) No time to properly manage
2) Lack of expertise - and no time to learnOtherwise, technology makes it relatively easy to self-manage.
If you don't have the time, then hiring a PMC NOW, before buying the next rental, is probably a good idea.
You can "test-drive" this PMC to see if they meet your expectations.
- If not, it's easier to move 1 rental to another PMC versus 2+.Here's some of our copy & paste advice about selecting a PMC, that you may want to review ASAP to determine if this PMC is the right one for you!
----------------------------------------------------------------------------------------------------------We’re a Property Management Company (PMC) in Metro Detroit ONLY, with 25+ years of experience, and we’ve seen owners make the same mistakes, over & over again when looking to hire a PMC – which drives us nuts!.
In our experience, the #1 mistake owners make is ASSUMING all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY.
So, owners mistakenly think price is the only differentiator – and look for a PMC like they’d shop for groceries☹
We encourage you to learn from the mistakes of others by reading posts here on BiggerPockets from owners that picked a PMC solely by price and regretted it.
We recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.
Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.
Even if someone gives you a referral, do NOT make the mistake of assuming that just because a PMC met their expectations, they’ll meet your expectations. We all have our own expectations and what works for someone else, may not work for you.
If you’re new to all of this, it's often a case of not doing enough research, as you don't know what you don't know!
So, ask more questions!
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
Here’s some articles we’ve contributed to BiggerPockets about screening a PMC BETTER than you would a tenant!
20 Questions to Ask When Vetting a Property Management Company: Processes
13 Questions to Ask to a PMC: Communication and Documentation
24 Questions to Ask When Evaluating a Property Management Contract
Logical Property Management4.9446 Reviews - 8moRyan SpathBusiness MemberReal Estate Agent · Boise, ID · Member since 2017 · 557 posts · 376 votes
Congrats on the first property — that’s a big milestone.
This is definitely a loaded question, and there are real tradeoffs on both sides. I’d start by asking yourself a few key things: What are your long-term goals? How much time do you realistically have to dedicate to this? Can you truly treat it like a business rather than a side task? Do you have a strong pulse on the local rental market and access to reliable, cost-effective trades? And just as important — do you actually want to be hands-on?
For a single property, self-managing can be a great way to learn and improve margins. On the other hand, if your goal is to scale and your time is better spent acquiring the next deal, having a property manager in place can make a lot of sense.
There’s no one-size-fits-all answer — the “right” choice depends on what you’re optimizing for right now.
- 8moBenjamin AakerPro MemberRental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
With a single property and starting out, you can learn a lot from self-managing. As you grow, it's hard to continue to manage and acquire new properties. I'd say keep doing it yourself and learn how to do it. That being said, a 3rd party property manager can probably do the work better and more cheaply. If you do it yourself, make sure you learn all the local laws and follow them.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes8mo
Quote from @Edgar Diaz:
Hey BP community
I aquired my first property a few years back and initially utilized a house hacking strategy for a couple years. The property is currently rented out to tenants and I have put a property manager in charge.. looking for any advice on whether this is an optimal approach for a single house portfolio or if I should manage myself for the time being. For context, I do plan on adding onto my portfolio this year
If you've got to ask if you need a property manager, you need a property manager.
- 8moAshish AcharyaBusiness MemberCPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
Congrats on getting started and on already having a rental under your belt. You’re in a good spot.
From a tax perspective, whether you self-manage or use a property manager doesn’t change much on the return itself. Management fees are deductible either way. The bigger difference is control, documentation, and learning.
For a single property, many investors self-manage early on to really understand operations, expenses, and tenant issues. That knowledge pays off when you add more doors. From a tax standpoint, being more involved can also help with tracking expenses cleanly and, in some cases, material participation if that ever becomes relevant to your broader strategy.
Using a property manager makes sense if it’s buying you back time and reducing stress, especially if you have a demanding W-2 or live far away. Just make sure their reporting is clean so your books and deductions stay solid.
If you plan to grow this year, think of this phase as education. Whether you manage or not, the key is systems and good records. That’s what keeps things efficient and tax-ready as you scale.
Good luck, and happy to connect.
INVESTOR FRIENDLY CPA®5241 Reviews - 8moAdam BartomeoBusiness MemberReal Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
It would depend on the location and how much free time you have. I always recommend having firsthand experience before hiring a PM. It allows you to understand how to manage them and when to allow them grace with certain situations.
Bartomeo Property Management4.7150 Reviews - 3moRachid AbadliBusiness MemberInvestor · Sacramento, CA · Member since 2024 · 129 posts · 36 votes
Edgar — fellow Sacramento landlord here. I was in almost exactly your position a couple years ago. I house-hacked my first property and hired a PM when I moved out because I didn't know what I was doing.
Here's what I wish someone had told me: with one property, you're paying a PM 8–10% to do maybe 2 hours of work per month. The PM fee isn't the real cost — it's that you never learn how your property actually operates. You don't know what your tenants need, what maintenance really costs, or what your lease should say.
I'd suggest self-managing your current property for 6 months before buying the next one. You'll learn more about landlording in those 6 months than in 3 years of paying someone else. The systems you build now — how you screen, how you collect rent, and how you handle maintenance requests — those scale. What doesn't scale is ignorance.
That said, if your PM is good, shadow them for a month before taking over. Ask them to walk you through their process. A good PM won't mind — they know most small landlords eventually self-manage.
What made you go with a PM initially? Was it distance, time, or just not knowing where to start?
LeaseBase.ai - Lender · TX · Member since 2026 · 164 posts · 67 votes3mo
If the property is cash flowing and the property manager is doing a good job, I’d lean toward keeping them in place—especially since you’re planning to grow your portfolio this year.
Many investors focus on the management fee but overlook the value of buying back their time. A good property manager can handle tenant communication, maintenance coordination, rent collection, and lease renewals while you focus on acquisitions and financing.
That said, with a single property, some investors choose to self-manage initially so they can learn the business firsthand. Understanding tenant screening, lease enforcement, and maintenance processes can make you a better owner even if you eventually outsource everything.
I’d ask yourself one question: Is the property manager helping you scale faster than you could on your own? If the answer is yes, the fee may be well worth it.
How has your experience been so far? Any issues with communication, maintenance costs, or tenant placement?
- Property Manager · Fort Worth, TX · Member since 2014 · 77 posts · 29 votes3mo
Congrats on the first one... and smart to be thinking about this before you add the next. After 30 years managing single-family homes, here's what I tell folks: a good manager earns their fee the day a tenant stops paying or a pipe bursts at 2am, not when everything's running smooth. If you're serious about growing this year, get your systems and a manager you trust in place now on one house, so you're not learning the hard way across five. Just watch the fine print... ask whether they mark up maintenance, because that quietly eats your returns more than the monthly fee ever will. Test them on the one you've got, and if they're transparent and responsive, scaling gets a whole lot easier.
- Property Manager · Fort Worth, TX · Member since 2014 · 77 posts · 29 votes2mo
Congrats on the house hack and the plan to grow... that changes the math here. With one door, self-managing is doable, but the day you add a second or third, your time gets expensive fast and a good manager starts paying for itself. I'd bring one on now while it's just one property, so you can test-drive them before the portfolio gets real... it's a lot easier to judge a company on one home than to untangle five later. Watch how they handle maintenance and whether they mark it up... that's where owners quietly lose money. Build your systems with a partner early and you'll scale a whole lot smoother than doing it all yourself.
- 2moAdam BartomeoBusiness MemberReal Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
If you have more time than money, self manage.
If you have more money than time, hire a PMC.
Bartomeo Property Management4.7150 Reviews - 2moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votesFor a single rental, there isn't a right or wrong answer. It really comes down to how much you value your time versus the management fee. If you have good tenants in place and a solid property manager, there's nothing wrong with keeping them, especially if your goal is to grow the portfolio this year. A lot of investors underestimate how much time tenant communication, maintenance coordination, and bookkeeping can take. That said, managing one property yourself can be a great learning experience if you're still building your systems. You'll gain a better understanding of tenant management, repairs, and expenses, which can help you make better decisions as you scale. I self-managed my first few rentals and learned a lot from it, but eventually reached a point where my time was more valuable elsewhere.
Quote from @Edgar Diaz:
Hey BP community
I aquired my first property a few years back and initially utilized a house hacking strategy for a couple years. The property is currently rented out to tenants and I have put a property manager in charge.. looking for any advice on whether this is an optimal approach for a single house portfolio or if I should manage myself for the time being. For context, I do plan on adding onto my portfolio this year
If your property manager is doing a good job, keeping vacancies low, and handling issues without creating headaches, I'd probably focus more on acquiring the next deal than saving a few percentage points on management fees. As your portfolio grows, having those systems already in place can make scaling much smoother. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews - Property Manager · Fort Worth, TX · Member since 2014 · 77 posts · 29 votes2mo
I've managed single-family homes for 30 years, and here's what I've learned... the real question isn't PM or self-manage, it's what you want your time going toward. If you're serious about adding to the portfolio this year, keeping a good manager in place now frees you up to go find the next deal instead of chasing a leaky faucet at 9pm. One house is easy to self-manage until it isn't... the day you're out of town and a pipe bursts is the day you'll be glad someone's got it. My advice: judge your current PM on how they communicate and whether they nickel-and-dime you on maintenance markups, and if they pass, let them run the operations while you do the work that actually grows your wealth.
- 2moAdam BartomeoBusiness MemberReal Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
It is always best to self-manage for a few years and then hand off to a PMC. You should self-manage so that you can spot fakers and PMC's that aren't knowledgeable. Having a strong PMC in place will not only provide you with the time necessary for you to grow your portfolio but they will also understand the laws better.
Bartomeo Property Management4.7150 Reviews - 2moJohn MorganPro MemberRental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
I self manage 39 SFR while working a full time W2 and it's easy to do. I feel that it's a waste of money to hire a PM. With today's technology, I don't spend that much time self managing my properties. Maybe a couple hours a month? And 20 of my properties are out of state which are just as easy to self manage as my rentals nearby.
- Property Manager · Fort Worth, TX · Member since 2014 · 77 posts · 29 votes2mo
Having a property manager in place BEFORE you add your next property is actually the smart play... you want to test-drive them while the stakes are lower. Managing one property yourself sounds simple until you get a 10pm maintenance call the night before a work trip — and those calls always come at the worst time. The real value of a great PM isn't just the day-to-day handling of things, it's having a trusted partner who already knows your standards before your portfolio gets bigger. Use this property to set your expectations: ask hard questions, see how they communicate, and find out if this is the right fit. If they're doing the job well, keep them — if something feels off, better to find out now than after you're three or four properties in.
- Property Manager · Fort Worth, TX · Member since 2014 · 77 posts · 29 votes2mo
Managing one house yourself sounds simple until the 10pm call comes in and you're diagnosing a water heater over the phone. I ran my own properties for years before we built a team, and the honest truth is... self-managing teaches you a lot, but it costs you more than the 10% if you're not careful. The question I'd ask isn't "can I manage it?" — it's "what's my time worth, and what do I want my next year to look like?" If you're growing, get the PM dialed in on one property now so you know what good looks like before you hand off five. Not all PMs are the same — interview at least three, ask them point-blank how they handle maintenance vendors and whether they mark up repairs, and check their communication track record before you sign anything.
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