When Do You Decide to Outsource Property Management?

Question

Managing multiple doors can get hectic fast. Some investors prefer keeping it in-house, while others hire pros once they hit 5+ units.

For those who’ve made the switch, was it worth the cost?

We often see investors refinance or use DSCR loans to free up cash flow and outsource management — but I’m curious about your real-world experiences.

Drew Sygit · Answer

@Kelly Schroeder just came across thie BP article, which while a pitch for an investment firm, still has some good points about the true cost of DIY landlording:)

https://www.biggerpockets.com/blog/hidden-costs-of-self-managing-your-portfolio

Clare Pitcher · Answer

I may be  little biased as I work for a PM, but I think if you can find the right team it is worth it! You can write off property management fees and the fees are often very small and can help the long term health of your property to have someone with eyes on the unit.

Drew Sygit · Answer

@Kelly Schroeder too many investors focus solely on the PRICE of management, which often means they sacrifice QUALITY of  management.

Then they find out the hard way that bad management can ruin the best investment:(

Adam Bartomeo · Answer

You should decide to use a PM before you even pencil the deal. Self-managing is like stepping over dollars to pick up pennies (unless you are trying to learn how manage properties so you can manage the PM).

Patrick O'Sullivan · Answer

Great question, Kelly. For the 4 or 5 unit mark, the day-to-day tasks may start pulling too much focus from the bigger investment goals. Outsourcing property management wasn’t just about convenience; it would give the bandwidth to scale more strategically.

That said, it really comes down to finding a quality PM. A good one will more than justify their fee through tenant retention, quicker turnovers, and fewer maintenance headaches. But a poor one can definitely cost you more than they save.It's absolutely worth the investment to find a high-quality team. True success comes from partnering with people whose standards and communication style are in perfect alignment with yours.

David Peschio · Answer

Like Clare I am a bit biased but I self managed for a long time before starting a property management business and wish I turned them over sooner.  Focus on growing your investment portfolio and get out of the day to day operations.  Once you find the right company, the money spent will be worth it and you will be spending your time on your business not in it.

Chris Seveney · Answer

we always use third-party property management. When you're looking to grow in scale, you need to evaluate your time and the cost of that time. Property management can be a very large time Suck and for very little savings from using a property manager. They are absolutely worth the cost

Moe Sidd · Answer

Totally worth outsourcing it for more than a few units, it’s a thankless job and well worth the money paid. Only caveat would be make sure the PM doesn’t nickel and dime when it comes to costly repairs and tries to look for cost efficient repairs on your behalf. I made the switch after buying my 2nd property since the 2nd one was out of state!

When Do You Decide to Outsource Property Management?

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