Property manager question ???

Question

Quick question about property management:

In your opinion, is it better to hire a property manager (pay about 7-10%) for a company or use a software system to save money ?  Asking for rookie investors

Evan Polaski · Answer

@Erwin McClain, I tend to agree with Greg.  It gives you some insights into what is actually happening day in and day out, and you can then justify if spending that money is worth it. Personally, I never found it worth it, but everyone's scenario is different.

If you have a few good handymen you can call as needed, the rest of property management is pretty easy.  If you have a good property in a good neighborhood that is in demand, I would never spend money on a PM.  If you have a worn out property with a lot of deferred maintenance in a lower end area that does not typically have the best tenants, then it may be worth it, because you will have more calls, more tenant issues, harder time leasing, more turnover work, etc.

Alyssa Wright · Answer

I think the answer to this question really depends on a few factors such as your current unit count, location of your properties, long term goals, and how much of your income is based off of your units.

If you're someone who only has a handful of properties and they are pretty centralized in your area it might be best to just handle them yourself and invest in a good PM software.

If you are looking to get or already have a good amount of units that maybe aren't so centralized; it definitely couldn't hurt to look into getting a PM company.

Definitely are pro's and con's for both but you just gotta look into both options and decide what is best for your portfolio.

Erwin McClain · Answer

Thanks @Greg Kasmer, that’s exactly what I was thinking. Just looking for some options & opinions

Erwin McClain · Answer

Hey @Drew Sygit, I’m literally just turning my SFH into a house hack coliving rental. I have male seniors whose income is verified thru retirement/disability payments. I’m trying to save PM fees by using rent redi software for the time being until I am able to scale up

Drew Sygit · Answer

@Erwin McClain how will software go beyond enhancing your DIY management skills and actually replace a PMC?

Greg Kasmer · Answer

Erwin - There are many thoughts/perspectives on this topic... I would first read several books on property management (Brandon Turner from Bigger Pockets has one of the best!)The Book on Managing Rental Properties | Book for Landlords – BiggerPockets Bookstoreand then consider your options. If you're 50/50 on whether to do it, I would encourage you to self-manage your first few rentals and then when it becomes too much of a time commitment turn it over to 3rd party management. By self-managing first you'll be a lot more knowledgeable and a better client when you do turn it over to a 3rd party company. Good Luck!