Self-Management vs Professional Management: Which is better?

When starting out, the question of "should I self-manage or hire a property manager," always comes up. Most new buyers tend to want to self-manage at least at the start especially if they're househacking. I think this is a great idea. It's good to learn the ins and outs of property management at least at a surface level when beginning so that you can better "manage the manager" so to speak when you do scale to a size where you need to hire out management. It also saves money at first and just takes a little more of your time to do showings and things like that for filling vacancies. Everyone always says things like "I don't want to have to fix a toilet at 2AM." While these scenarios are possible, they're very unlikely if you keep your property in good condition. It's good to have some friction in the process as well by giving the tenants clear instructions for where they can send complaints, work orders, and questions. Boundaries are a good thing! Probably not the best idea to just give them your personal number. Most management software like RentReady will have all these systems built in for a subscription fee.

That being said, hiring a GOOD manager can save you a lot of time and stress. Emphasis on the good. Bad managers cause more problems than their worth. There's a handful of property management companies in the Twin Cities and maybe two or three of them are actually any good. Keep in mind that when hiring a manager, you're trying to minimize your involvement with the day to day at your properties. You should also keep in mind that a great property manager will pay for themselves with lower vacancy, higher rents, bargain deals with contractors, and strong leases. If they aren't keeping you updated to the point where you have to constantly ask them how the property is doing, they aren't doing their job. Communication is very important so try to make sure to find a manager who takes the time to jump on a call once a month or send a weekly email. This can and should be a key point to bring up when shopping property management companies. In theory, you shouldn't have to worry about if you're investment is profitable or not.

In the end it's totally up to you weather you self-manage or hire it out. This business is all about time efficiency, optimization, and systemization. If you can figure out a process that works for you then you're all set up for success!

For you in the community, what has been your experience with property managers in the Twin Cities? Any wisdom or advice for people just starting out that I missed? 

I hope all this information helped! Feel free to comment or DM me if you want more information on referrals or investing in general. Always happy to help out a fellow investor!