Hiring a property manager without a company?

Hiring a property manager without a company?

Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
I am curious to hear everyone's opinions on outsourcing property management for a portfolio of rentals to a specific person that you the investor hires. I know a lot of people prefer to manage their own properties because nobody takes care of your properties the way that you do, however I know one person can only do so much as one scales up. While I'm sure there are plenty of quality PM companies out there, most of the experiences I have heard have been rather negative such as fees incentivizing turnover and repairs being "band aid fixes" to a bigger problem. What I'm wondering if in the situation of let's say I build up a portfolio of say 20 rentals located within a half hour of one another, quality tenants in place with online rent autopay or and I no longer want to manage it myself. Is there anything stopping me from hiring a personal part time manager to basically just take the calls, contact my subs, and turn the unit over for say a flat fee each month with bonuses for every lease renewal(to incentivize keeping tenants happy)? I'd be curious if anybody has had success with, see it as an unrealistic position to manage only your rentals or if it's really only worth the effort if you want to start your own PM company?
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Member since 2016 · 143 posts · 157 votes
9y

My property management was one woman. She was a fireball and handled my properties plus hers and a 24 unit complex as her part time job. She was great and even the tenants loved her. She kept my checkbook and signed checks until she retired. She knew what contractors were reliable and who was the most reasonable. Property management doesn't have to be a company. Go for it!

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  • Rental Property Investor · Hummelstown, PA · Member since 2015 · 638 posts · 653 votes
    9y
    Bill Goodland nope nothing stopping you! I know a guy who has his own part time PM who he just pays by the hour. It's much cheaper for him than a PM company. I think the trick as with everything is finding the right person. I am willing to bet that more times than not, you find those types of key people at REIAs or thru mutual connections, and also that you find them when you aren't really looking for them.
  • Member since 2016 · 143 posts · 157 votes
    9y

    My property management was one woman. She was a fireball and handled my properties plus hers and a 24 unit complex as her part time job. She was great and even the tenants loved her. She kept my checkbook and signed checks until she retired. She knew what contractors were reliable and who was the most reasonable. Property management doesn't have to be a company. Go for it!

  • Real Estate Agent · Morgantown, WV · Member since 2016 · 100 posts · 41 votes
    9y

    I'd suggest listening to BP Episode 205 (Jered Sturm) He happened to have found a Tenant/PM who was motivated to learn how to be the on-site PM (for free rent!). But someone knowledgeable needs to be doing the actual "books/reporting/number crunching" so you definitely compliant. 

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