I'm a brand new "Pockets" member. Still in the self-education/pre-investment stage, does anyone recommend a new investor like myself hiring a full service property management company, or can I initially only hire for tenant placing and vetting, while I personally perform handyman and interim repairs for new leases? Which would be the most effective and financially safe for a rookie investor like myself, with a very limited budget?
One factor is TIME. Another is the quality of asset that needs to be managed.
Very limited budget implies that you might have just enough capital to get started with one property.
You will be buying yourself a job managing especially if your current budget requires buying lower end properties.
When investors start generating larger sums of wealth there is a shift for most to go to hands off, higher quality assets.
Thank you for the response Joel, but my concern is not in the "quality" of the property, but what I'm really trying to determine is whether or not hiring an "all-services" property management company is worth the additional expense in the years that I'm holding only a few(+/- 10) properties in my portfolio? In other words, are there management companies that will only do the vetting, placements and rent gathering while I concentrate on maintenance and acquiring new properties?
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!