To self manage or hire a PM...that is the question

Managing Your Property
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To self manage or hire a PM...that is the question

Kayla Elliott
Member since 2025 · 8 posts · 4 votes

I manage my parents rental portfolio which consists of 1 mobile home park (20 units), and about 15 other houses. A lot of them are in poor shape and I am slowly trying to fix them up one by one. However, I don't have time to do the PM side anymore. I reached out to a friend who has a PM company, but they require all contractors be insured. The problem, is that we have a full time maintenance guy that has worked for us for 25+ years and I can't let him go.  I tried to get a policy where we insured him, but since we OWN the properties and the MAINTENANCE company. So because of the conflict, I can't insure the maintenance company. Which causes me to not be able to hire a PM, because they all want him insured. Even though he doesn't do anything that requires a license. 

So would it be smarted to hire more of an "assistant" to manage everything and be a little more in control of the process and procedures? I just don't have time for maintenance calls, filling vacancies, wiring leases, etc. 

What would you do? 

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Matt McCurdyBusiness Member
Real Estate Broker · Cedar Rapids, IA · Member since 2019 · 143 posts · 56 votes
1y

@Kayla Elliott it is a great question and it's something that each investor has to decide on their own and their circumstance.  What I see most often is property managers get paid a % of the rental revenue.  I believe this model is archaic and motivates/unmotivates the wrong behaviors.  I'm not saying all PM's do this, but some do...What motivates you as a PM to go the extra mile for a property they are managing when they get a percent every month?  If they can do 1 hour or work 40 hours for the same pay why put in the 40 hours?

I've found the best way to ensure the work is truly getting done is to have a property manager in house that I can manage on a week-to-week basis.  By the sounds of your portfolio, you could really use a part-time manager.  This could be a virtual assistant or someone locally.  That's the best part, YOU get to decide.  If you hire a PM, THEY get to decide.

Good Luck!

[email protected]319-450-6447
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  • Abdul Malik
    Property Manager · Charlotte, NC · Member since 2025 · 18 posts · 7 votes
    1y

    @Kayla Elliott

    Hi Kayla - Personally, I would go with a property management company especially if you want to get out of the weeds of managing your properties, which is a large portfolio!  As you know there is so much involved like lease renewals, maintenance requests, walk-throughs, etc. My guess is even with an assistant you will still have to do a lot of the work.

    As for your maintenance guy, that is definitely a unique situation!  Even if the two companies are under two separate LLCs, insurance companies still won't insure them?  If I come across something like this I will definitely pass any information along.  

    0Reply
  • Matt McCurdyBusiness Member
    Real Estate Broker · Cedar Rapids, IA · Member since 2019 · 143 posts · 56 votes
    1y

    @Kayla Elliott it is a great question and it's something that each investor has to decide on their own and their circumstance.  What I see most often is property managers get paid a % of the rental revenue.  I believe this model is archaic and motivates/unmotivates the wrong behaviors.  I'm not saying all PM's do this, but some do...What motivates you as a PM to go the extra mile for a property they are managing when they get a percent every month?  If they can do 1 hour or work 40 hours for the same pay why put in the 40 hours?

    I've found the best way to ensure the work is truly getting done is to have a property manager in house that I can manage on a week-to-week basis.  By the sounds of your portfolio, you could really use a part-time manager.  This could be a virtual assistant or someone locally.  That's the best part, YOU get to decide.  If you hire a PM, THEY get to decide.

    Good Luck!

    [email protected]319-450-6447
    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Kayla Elliott is the handyman 1099 or W-2?

    If 1099, why can't he get his own liabilty coverage?
    - sounds like your friend's PMC pays this way.

    If W-2, why isn't your business properly insured to cover him?.

    FYI - licensing and insurance are two DIFFERENT things!

    When you say you, "can't let him go" - why not? He has too much historical knowledge? Affordable? He's like one of the family?

    You are going to have to weight that against your desire to transfer management.

    If you want to go down the path of outsourcing some of the burden, suggest you make a list of everything you do. Rank everything by how much you like/dislike doing it and how much time it takes you. Then you can identify the tasks you dislike the most & take the most time. These you want to outsource first!

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  • Dominic Mazzarella
    Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes
    1y
    Quote from @Matt McCurdy:

    @Kayla Elliott it is a great question and it's something that each investor has to decide on their own and their circumstance.  What I see most often is property managers get paid a % of the rental revenue.  I believe this model is archaic and motivates/unmotivates the wrong behaviors.  I'm not saying all PM's do this, but some do...What motivates you as a PM to go the extra mile for a property they are managing when they get a percent every month?  If they can do 1 hour or work 40 hours for the same pay why put in the 40 hours?

    I've found the best way to ensure the work is truly getting done is to have a property manager in house that I can manage on a week-to-week basis.  By the sounds of your portfolio, you could really use a part-time manager.  This could be a virtual assistant or someone locally.  That's the best part, YOU get to decide.  If you hire a PM, THEY get to decide.

    Good Luck!

     @Matt McCurdy great advice. This is what I do with my properties and I save a ton. I've used property managers in the past and was never impressed with the work. It ended up being both cheaper and more effective to do it in house with a part time manager/VA.

    Now if I owned a big apartment complex or portfolio of them that would be very different. 

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  • Mendell GosnellBusiness Member
    Property Manager · Salem, OR · Member since 2014 · 10 posts · 5 votes
    1y

    As a professional property manager for going on 20 years and a real estate investor, I still encourage people to manage for themselves.  Eventually they will build out a system or understand the value of a good PM company and what to ask, look for and keep an eye on.  But, if the end goal is to have truly passive income you have to eventually build a hands-off turn-key operation or outsource the work.  It all depends on your goals.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    1y

    Handing it over to a professional PM makes for a clean break, but you may be better off hiring a part-time assistant. Make a list of all your tasks and determine what could be handed off easily. Create policies, forms, or whatever tools they need. Train, hire, supervise. It takes a little time, but you get to maintain control.

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  • Gregory SchwartzBusiness Member
    Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
    1y

    Keep it in-house. Maintain control, maximize your ROI, and keep what sounds like an amazing handyman!

    In my experience, property management companies often lead to higher vacancies, higher maintenance costs, and lower rental income compared to competent self-managing investors. On the surface, it might seem cheaper to hire a PM company, but when you factor in vacancies, maintenance, and under-market rents, you’ll likely come out ahead by managing it yourself.

    I used to work for a local investor with 500+ units, all in one town. His in-house management team cost way more than a typical PM company—but because he controlled the key metrics, he outperformed the competition. We had our systems so dialed in that during the busy season, we averaged just 4–5 days of vacancy between tenants while turning 10–15 units a week!

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    • Andrew Kubik
      Property Manager · Nashville, TN · Member since 2025 · 66 posts · 35 votes
      1y

      @Gregory Schwartz This is a great strategy for those that can make it work. Unfortunately, most can't. A competent property manager can use their connections to get the property rented and repairs taken care of. 

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  • Gregory SchwartzBusiness Member
    Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
    1y

    @Andrew Kubik how's any different than a competent real estate agent who can provide the same connections. In College Station TX A lot of the investor focused agents will also help list your investment property for rent. 

    [email protected]443-812-0357
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  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    Find another PM... why just give up after one said no?

    [email protected]239-339-3969
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  • Peter TverdovBusiness Member
    Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
    1y

    Just hire a good PMC. The people giving advice to micro mange someone or hire an assistant are also valuing their labor and time at $0. Brilliant strategy.

    [email protected]732-289-3823
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  • Melanie ThomasBusiness Member
    Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 489 votes
    1y
    I recommend you find a new PMC. Good luck & happy investing!
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  • Mendell GosnellBusiness Member
    Property Manager · Salem, OR · Member since 2014 · 10 posts · 5 votes
    1y

    Kayla, if you decide to keep managing, you might consider picking a good tenant in the park to be the onsite.  Train them well and take care of them, give them guidance and structure and hold them accountable.  If this path doesn't work then keep searching for a quality pm company that you can trust AND that will work with you.  Good Luck!

    503-588-0940
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