Good Day All,
I have a question relating to bring Property management and/or maintenance in house vs using a 3rd party manager.
I have about 135 units in my portfolio - ranging from SFH - Apartment buildings mainly in Rochester, with 10 in Buffalo. Currently, I have a property management company that covers both cities. As you can imagine, as my portfolio has grown so have my maintenance costs and property management fees. This year, I will spend approximately $90k in property management/Leasing fees and another $275K in maintenance (this is material and labor combined). I am in out of town investor.
I think it is time to move operations in house and hire people as there is some opportunity to save money (I think). So I wanted to get some advice on if my logic is sound and if so, how do I go about getting started. Here are some specific questions:
- Outside of the obvious cost savings, are there other considerations to bringing operations in house or or not to evaluate?
- What's the best way to identify people with the right skills to hire? Do you know of anyone is looking for a job in this space in Rochester?
- There are a number of added expenses with NY State when you start hiring full time employees. Anyone has experience in how much those costs might be?
- Suggestions on safeguards I should put in place since I am an out of town investor. Note, I do go to Rochester/Buffalo for at least a week a month
Thanks in advance for your thoughts.
If you don't get much response on this forum, I'd post it in the Landlord forum (which is very active), as some of your concerns are not geographically specific.
One of the first things that comes to mind for me as an added cost is company vehicle. Are you expecting the people you hire to drive their own vehicles or will you be providing transportation? Will you have to provide office space as well as storage space for equipment and supplies?
Congrats on your success!