Is Becoming a Property Manager Worth It?
Real Estate Agent · Fredericksburg, VA · Member since 2023 · 25 posts · 18 votes
Is Becoming a Property Manager Worth It?
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Rental Property Investor · Member since 2018 · 826 posts · 810 votes
5moHow many millionaire PMs do you know? Why would you take on 100s of other people's headaches for a slim margin?
if you already have your own portfolio, why not just focus on growing that. Your opportunity cost is too high to waste your time enriching others. Focus on your own deal flow and business optimization
I'm not degrading what PMs do and I'm sure there are a number of high NW PMs. However, it's tough sledding and not an easy path to success.
17 Replies
- 5moJason WrayPro MemberBanker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
Joseph,
To be in that many states spread out and not have a "Niche" market like STR or MTR I would say focus on buying REI versus PM. I know a lot of people who own large PM companies and most of them focus on their local state and a niche market or clientel.
Example Florida PM becuase its an ammenity state it attracts millions of people for Golf, Fishing trips, Family Vacation, Business, Entertainment and more. You can be a little aggressive on the margins because it caters to a certain group or niche market so it pays well.
Look at your PM company the same way you would buying REI whats your ROI versus time invested. You mentioned Michigan and Section (8) if you can focus on that only then you have your Niche! As you know Sec 8 can be a hassle but either way good luck.
- Real Estate Agent · Fredericksburg, VA · Member since 2023 · 25 posts · 18 votes5mo
Quote from @Jason Wray:
Joseph,
To be in that many states spread out and not have a "Niche" market like STR or MTR I would say focus on buying REI versus PM. I know a lot of people who own large PM companies and most of them focus on their local state and a niche market or clientel.
Example Florida PM becuase its an ammenity state it attracts millions of people for Golf, Fishing trips, Family Vacation, Business, Entertainment and more. You can be a little aggressive on the margins because it caters to a certain group or niche market so it pays well.
Look at your PM company the same way you would buying REI whats your ROI versus time invested. You mentioned Michigan and Section (8) if you can focus on that only then you have your Niche! As you know Sec 8 can be a hassle but either way good luck.
Totally understand being in a niche in a specific market. That is the main thing stopping me right now. If it was all in a single market or even two, I could be confident and wouldn't have even posted. Thank you for the advice
- Property Manager · Mobile, AL · Member since 2015 · 34 posts · 19 votes5mo
Property Management can be highly profitable if you dedicate yourself to it. When I started investing and syndicating among other ventures, all of my colleagues wanted me to manage their properties and the PM Co was the bastard child of my enterprises until I finally realized it was the golden goose that could be the hub for helping others create wealth through real estate. If you're just in it for the profit margin, but not passionate about PM, then I'd say don't do it. I went to 64 units self managing while fixing/flipping before I hired an assistant. It was too late before I realized that managing for others means double the communication. My 64 door portfolio was fine because I was the boss, just tenant stuff to deal with. Hell, I was a fix and flipper so I just told crews to go handle work orders when needed and quick unit turnovers. When I started managing others, each door added meant two clients, an owner I had to manage and a tenant I had to manage. You actually have to get approval to spend their money. It can go quickly downhill unless you're passionate about it and have systems/safeguards/take a business approach to looking at numerous revenue streams beyond monthly mgt fee/ Pod, hybrid silo model approach, and many other functions that I learned through the school of hard knocks.
It's only worth it if you want to help others through Asset management. If it's about the money you're better off staying focused on your own investments. I also got out of section 8. Landlords and tenants are way too time consuming and the program is riddled with fraud that I don't want to be a part of. It's all fine until you're faced with two dozen section 8 move outs in one month who have not respected your property the entire lease. I'd say it's not worth it in your case. Go bigger before managing for others. Do 50 or 60 unit turns before managing other people's money and retirement. Also out of 10-15 rentals you should almost never have an eviction except maybe one in 5 years, so if you've had one recently, you're not ready, just my opinion.
- Real Estate Agent · Fredericksburg, VA · Member since 2023 · 25 posts · 18 votes5mo
Quote from @Lee Waldrop:
Property Management can be highly profitable if you dedicate yourself to it. When I started investing and syndicating among other ventures, all of my colleagues wanted me to manage their properties and the PM Co was the bastard child of my enterprises until I finally realized it was the golden goose that could be the hub for helping others create wealth through real estate. If you're just in it for the profit margin, but not passionate about PM, then I'd say don't do it. I went to 64 units self managing while fixing/flipping before I hired an assistant. It was too late before I realized that managing for others means double the communication. My 64 door portfolio was fine because I was the boss, just tenant stuff to deal with. Hell, I was a fix and flipper so I just told crews to go handle work orders when needed and quick unit turnovers. When I started managing others, each door added meant two clients, an owner I had to manage and a tenant I had to manage. You actually have to get approval to spend their money. It can go quickly downhill unless you're passionate about it and have systems/safeguards/take a business approach to looking at numerous revenue streams beyond monthly mgt fee/ Pod, hybrid silo model approach, and many other functions that I learned through the school of hard knocks.
It's only worth it if you want to help others through Asset management. If it's about the money you're better off staying focused on your own investments. I also got out of section 8. Landlords and tenants are way too time consuming and the program is riddled with fraud that I don't want to be a part of. It's all fine until you're faced with two dozen section 8 move outs in one month who have not respected your property the entire lease. I'd say it's not worth it in your case. Go bigger before managing for others. Do 50 or 60 unit turns before managing other people's money and retirement. Also out of 10-15 rentals you should almost never have an eviction except maybe one in 5 years, so if you've had one recently, you're not ready, just my opinion.
I appreciate your enthusiasm for property management. In regards to Section 8, I run a consulting company specifically used to help people buy and rent section 8 homes. I have assisted with 100+ purchases and have my own Section 8 portfolio. I am confident in my ability to navigate Section 8, been doing it for 4 years now.
Also, I have had 1 eviction in 4 years, not shabby I think. Ironically it was with my 2nd ever tenant as my screening process was terrible back then.
Your enthusiasm is actually the main point im thinking about. I won't lie, I do not have your love of property management, im very neutral about it. I was mainly exploring the idea as a way to grow in "vertical integration" for my business.
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes5mo
You must have some awesome systems in place to make that kind a jump from a dozen to 150 units. Please, share the apps and tools you are using to simplify. What is the number and length of vacancies you have had over the past 5 years? What is your average collected rent? Average annual maintenance expense per unit?
What is your screening process for S8 applicants, or do you just accept the vouchers without?
How do you know that a repair is necessary to begin with, and that it was properly addressed when you make payment?
How do you plan to "sell" the idea of partnering with a licensed RE Broker to basically process these rentals in the manner which you have described?
- Real Estate Agent · Fredericksburg, VA · Member since 2023 · 25 posts · 18 votes5mo
Quote from @Richard F.:
You must have some awesome systems in place to make that kind a jump from a dozen to 150 units. Please, share the apps and tools you are using to simplify. What is the number and length of vacancies you have had over the past 5 years? What is your average collected rent? Average annual maintenance expense per unit?
What is your screening process for S8 applicants, or do you just accept the vouchers without?
How do you know that a repair is necessary to begin with, and that it was properly addressed when you make payment?
How do you plan to "sell" the idea of partnering with a licensed RE Broker to basically process these rentals in the manner which you have described?
The transition would be slow. My investor friends wouldn't just dump everything on me at once. It would be a slow addition of a handful of properties at a time over 12-18 months.
I do have solid systems in place right now and am an expert at my numbers. I have also been in the Section 8 space for around 4 years now and have assisted over 100+ people through my consulting company get Section 8 units. That isnt the hard part for me. The main 2 pain points I foresee are:
-I personally have to do some light management still. Around 4-5 hours per month for all my rentals combined. Would a VA actually be able to handle this workload instead?
-What is a fair compensation to partner with a broker?
These points make me wonder if it is worth it or not based on the slim margins once expenses increase.
- Rental Property Investor · Member since 2018 · 826 posts · 810 votes5mo
How many millionaire PMs do you know? Why would you take on 100s of other people's headaches for a slim margin?
if you already have your own portfolio, why not just focus on growing that. Your opportunity cost is too high to waste your time enriching others. Focus on your own deal flow and business optimization
I'm not degrading what PMs do and I'm sure there are a number of high NW PMs. However, it's tough sledding and not an easy path to success.
- Real Estate Agent · Fredericksburg, VA · Member since 2023 · 25 posts · 18 votes5mo
Quote from @Allan C.:
How many millionaire PMs do you know? Why would you take on 100s of other people's headaches for a slim margin?
if you already have your own portfolio, why not just focus on growing that. Your opportunity cost is too high to waste your time enriching others. Focus on your own deal flow and business optimization
I'm not degrading what PMs do and I'm sure there are a number of high NW PMs. However, it's tough sledding and not an easy path to success.
Thank you. This is probably the answer I needed to hear.
- 5moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Joseph Khateri:
Hi all,
Currently manage 10-15 of my own rentals by myself (all Section 8) using TenantCloud. Have had PM's in the past and never really liked the process, and enjoyed keeping the 10%. This is all for my rentals out of state.
Honestly, it's not as hard as people seem to make it. Rent's automatic, maintenance requests are made through the portal, and anything in-person is handled by my local handyman. Anything eviction related is sent to a lawyer.
Recently, I had a few big investors ask if I was interested in forming my own PM company and handling their 100-150 Regular/Section 8 units. This would be in Ohio, Michigan, Indiana, Alabama, and Missouri. I am aware that I may need to partner with brokers as I am only licensed in Virginia.
My question is NOT whether I can handle it or not. I am sure I could hire multiple VA's or even in-person staff to handle the bulk of work. My question is if it is WORTH it. I have heard that profit margins are slim with management, but maybe there are more benefits than I realize.
For context, estimated rents on each is $1300/m.
How are you going to solicit business from fellow investors like you, that "Have had PM's in the past and never really liked the process, and enjoyed keeping the 10%"?
How are you going to make a profit with this mindset, from others with a similar mindset?"it's not as hard as people seem to make it." just means you haven't done it long enough and are pretty naive.
You can DM me is you really want the brutal truth...
Logical Property Management4.9451 Reviews- Lender · Charlotte, NC · Member since 2024 · 14 posts · 6 votes5mo
PM is not a walk in the park by any means I agree. We do a combination of self manage and pay a PM and the goal is to have them all with a PM because of the headaches. The big portfolio companies know the value of the PM and are willing to pay because it's a trade off - money vs headache.
- 5moRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Joseph Khateri:
Hi all,
Currently manage 10-15 of my own rentals by myself (all Section 8) using TenantCloud. Have had PM's in the past and never really liked the process, and enjoyed keeping the 10%. This is all for my rentals out of state.
Honestly, it's not as hard as people seem to make it. Rent's automatic, maintenance requests are made through the portal, and anything in-person is handled by my local handyman. Anything eviction related is sent to a lawyer.
Recently, I had a few big investors ask if I was interested in forming my own PM company and handling their 100-150 Regular/Section 8 units. This would be in Ohio, Michigan, Indiana, Alabama, and Missouri. I am aware that I may need to partner with brokers as I am only licensed in Virginia.
My question is NOT whether I can handle it or not. I am sure I could hire multiple VA's or even in-person staff to handle the bulk of work. My question is if it is WORTH it. I have heard that profit margins are slim with management, but maybe there are more benefits than I realize.
For context, estimated rents on each is $1300/m.
No I do not think it is worth it
- Virtual Assistant · Member since 2026 · 65 posts · 16 votes5mo
You’ve already done the hardest part, you built a simple system that works.
At 100–150 units, it’s not really about the 10% anymore. It’s about how you grow it without stress.
If you run it like a normal PM company, profits can be small.
But if you keep your current style (using tech, VAs, and good vendors, which is what I help investors set up), it can make good money. - Real Estate Agent · Memphis · Member since 2026 · 546 posts · 316 votes5mo
The question isn't really whether you can do it — it's whether you want to operate a management business at scale.
Managing 10-15 of your own units is very different from managing 100-500 across multiple states. At that point, you're no longer optimizing your own portfolio — you're building and maintaining an operating company.
On the numbers:
At $1,300 rent and 8-10% fees, you're looking at $100-130/unit/month.
On 100 units, that’s ~$10–13k/month gross — but that has to absorb:
• Staffing (VA + local support)
• Leasing workload and vacancy cycles
• Maintenance coordination overhead
• Compliance across multiple states
• Owner communication + reportingMargins tend to compress quickly unless operations are extremely tight.
Where it can make sense is if:
• You already have systems that scale cleanly
• You control leasing + maintenance workflows efficiently
• You’re using it to support your own acquisitions pipelineWhere it usually breaks down is when it becomes a service business without strong process control — then you're trading time and complexity for relatively thin margins.
Most people underestimate the shift from "managing properties" to "managing people and processes."
The real question I'd ask is: do you want another business line with operational overhead or do you want to keep optimizing your own portfolio?
That answer usually makes the decision pretty clear.
- Investor · Pacific Northwest · Member since 2026 · 538 posts · 300 votes5mo
I’d look at it less like “can I do it?” and more like “what business am I actually saying yes to?”
At 100–150 doors at ~$1,300/month, a 10% fee sounds attractive on paper, but PM is one of those businesses where gross revenue looks better than net reality. Once you add:
- staffing
- broker/licensing structure
- maintenance coordination
- owner communication
- leasing / turns
- delinquency / court / compliance
- after-hours nonsense
- insurance / E&O / trust accounting / software
the margin gets a lot thinner fast.
The real upside is:
- control — you can protect your own portfolio better
- deal flow — management can become a pipeline for acquisitions, partnerships, and inside visibility
- ancillary revenue — lease-ups, renewals, maintenance oversight, markups, placement fees, etc.
- economies of scale — your current systems may actually translate well
The real downside is that you stop being “an investor with a clean operating system” and become “the person everyone calls when anything goes wrong.”
So to me the answer is:
- If you want a cash-flowing operating company that also feeds your investing business, maybe yes.
- If you think this is just easy extra income because you already manage your own units, probably no.
Managing your own 10–15 is not the same as taking fiduciary responsibility for 100–150 doors across multiple states for other people.
My guess: it’s only worth it if you intentionally use PM as a strategic platform — not just a fee business. If you’re only chasing the 10%, I don’t think that’s enough.
- 5moDavid PeschioBusiness MemberRichmond, VA · Member since 2019 · 358 posts · 181 votes
Nothing is easy but the better question is what will make you happy. I love creating and working on a business so I think it is absolutely worth it. Always interesting and I would not trade it in for a normal office job. Obviously, it comes with its challenges and when you grow employee issues but that is always going to be the case with whatever you choose if you move beyond a single operator.
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes5mo
Your net profit after all expenses is maybe $30/door - if all goes well. And there is a lot that can go wrong.
PM's are quite literally stuck between a rock and a hard place - between the owner and the tenant and both are pulling and pushing on the PM for their interests. I have a feeling you are looking mostly at the virtual part of the business, but the grind happens in the real world: trash, damage, drama, evictions, repairs - and getting them approved is a fight with the owner, who always thinks you are talking advantage of them.
You send a qualified guy on W2 with benefits with a work truck to change a lightbulb and it takes half the morning to drive there, deal with the tenant, get it done and come back. Your fully loaded cost is $60/hr and now you have to explain to the owner why changing a light bulb costs $155.
I think the worst part is that nobody really likes you for what you do. "Okay" is the highest compliment you'll ever get.
- Property Manager · Fort Worth, TX · Member since 2014 · 77 posts · 29 votes5mo
Managing your own 15 doors is completely different than managing 150 doors for other investors. When you manage for others, you aren't just managing properties... you're managing people, expectations, and their retirement money. The margins are tight and the liability is high. Unless you are fully committed to building the systems and team required to do it right, stick to growing your own portfolio.
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