Do You Need a Professional Property Management?

Question

Hey all,

I wanted to share a quick post on property management. Every investor’s situation is unique, but there are key factors that can help you decide whether hiring a professional property manager or self-managing is the best option for your investment.

I'd encourage you to start with these 11 key questions to consider:

1. How far do you live from your property?The further you are, the more travel time and potential for oversight issues. Consider if regular visits and handling emergencies from a distance are feasible.

2. How do you handle stress? Property management can be unpredictable. Are you prepared to deal with tenant disputes, legal issues, or property damage?

3. Are you overwhelmed with your property? If managing your property is becoming stressful, a property manager can help regain control.

4. How many properties do you have? A growing portfolio may require professional management to keep everything running smoothly.

5. How much experience do you have with maintenance? If you’re not skilled in repairs or finding reliable contractors, a property manager can handle it for you.

6. How quickly can you rent out units? If you struggle with vacancies, a property manager can help fill units faster.

7. Are you capable of handling accounting? Property management involves detailed accounting, which can become overwhelming. A property manager can take care of this for you.

8. Are you available 24/7? Emergencies don’t follow a schedule. Can you handle being on call at any hour?

9. Are you willing to enforce rent policies? Dealing with late payments or evictions is part of the business. Are you comfortable with this?

10. Do you understand landlord laws? Property laws and contracts are complex. A property manager ensures compliance and protects you from liability.

11. Is managing the property the best use of your time? Consider if managing the property yourself aligns with your lifestyle and financial goals.

Hopefully these will be helpful!

Heath

Corby Goade · Answer

That's a tough one- not because it's better ROI or easier to manage your own properties- I'd argue that it definitely is not. The challenge is finding a good PM- they are out there, but defintely unicorns.

New investors think that PM is a simple thing to do, which is true, but it's not easy. There are so many legal and ethical pitfalls that you have to navigate, and even more challenging is to proactively avoid those issues rather than have to react as they land in your lap.

Just browse these forums- the posts from self managers aren't celebrating their savings and how "passive" their income is, they are all people who have fallen in to either costly or legal issue or both and they don't have the experience or resources to get out.

Self managing certainly can be done successfully, but those investors are unicorns too.

Heath Sizick · Answer

I appreciate you sharing Kerlous.

John Morgan · Answer

@Heath Sizick

I own 29 SFR and have been self managing  them all for 10 years. It’s easy to do. And 18 are out of state. Don’t over think it. When things break, they text me. Then I text someone to go fix the issue and give them my tenant’s number to coordinate a good time to come. Takes me like 30 seconds. Done. All leases and most payments are done with apartments.com to DocuSign. It’s free and easy to use.

Heath Sizick · Answer

I wouldn’t call my answer “world-class” since I’m not an expert, but the great thing about your questions is that they can help owners determine whether a property manager’s policies align with their needs. Clear expectations & strong communication are key.

I’m not sure how many PMs you’ve spoken with yet, but for example—question #2 assumes that all PMs mark up maintenance costs. Some do, but many don’t. For those that do, I’d want to understand when it happens, why, & how much.

As for #4—it really comes down to their own expectations. How often do they want eyes on your property? Then find a PM who meets that standard. The owner is in the driver’s seat. They need to ask the right questions (like you have), & choose someone they trust to provide the value & service they’re looking for.

Kerlous Tadres · Answer

Hey Heath, I totally agree with you! If you’re just starting out and are local, managing the property yourself can be a good way to learn. But as your portfolio grows or if you’re dealing with properties from a distance, a property manager can save you a lot of time and headaches. If managing becomes overwhelming or takes time away from finding new deals, it’s probably worth considering professional help.

James McGovern · Answer

What I find misleading in these discussions are

1. should pm be held responsible for choosing a bad tenant and any associated eviction expenses

2. what is a reasonable markup on top of whatever a contractor charges

3. what reports should landlords receive on at least a monthly basis

4. how frequently should a pm put eyes on the property

5. should a pm be held liable for vacancies

Heath Sizick · Answer

That is great John.Thanks for sharing that! Efficiency & peace of mind are key & it’s evident you created a system that works well for you, especially with so many properties...AND even out of state. That’s definitely impressive!

I do affirm that self-managing can absolutely be a great option for many investors, especially those who are organized, proactive, & available like you, but I’ve also found that others prefer a hands-off approach & value having a PM handle it all so they can focus on other areas of their business & life. Either way, I think you would agree that it’s all about finding what fits best with your goals & lifestyle.

Appreciate your post - thanks!

James McGovern · Answer

@Heath Sizick what guidance would you give to those looking for a PM related to my proposed questions so that others reading this post can ascertain what a world class answer would sound like?

Heath Sizick · Answer

Thanks for replying James!

All great questions & should be answered before signing with a PM. However, the first question is: "Do I need professional property management?" Or another way to ask it, "Should I consider professional property management?"

Professional property management is not for everyone & those questions in this post can help investors decide. IF the answer is yes, they probably do, then there are many other things to ask & consider when vetting out a quality PM company (Your questions included).

Do You Need a Professional Property Management?

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