Okay, I guess the only real answer is…“it depends”. However, I’m just looking for an average number of rentals that you can manage before you have to hire out some help. I mean not only doing the PM work but also “light maintenance” (not HVAC, Electrical). I have an 8-plex, just got a 16-plex, and looking at a 22-plex right now. My brother does all the PM/Maintenance work. I’m not sure when I need to get him some help. I’m sure he will tell me, but I wanted to get a head start to make sure we don’t try to do too much. Maybe 40-50 units?, maybe more???
It’s a small town so all the properties are within 10 minutes of one another. They are 20-25 yr old bldgs.
I know there’s not definite answer, but a ballpark would be nice.
Thanks!
Exo
I believe that one person doing all the management; maintenance; and rehab work can do 100 units if they are working 40 hours per week. Of course, that assumes the person is self-motivated and is a hard worker (which is certainly not the case for most people).
Mike
I think my first question to you would be- what kind of renters do you put in these places? What condition are they in when you rent them? Do you make sure everything is working and looks nice? How long have you had your 8-plex. ?
We had almost 40 at one time, and I noticed that around Christmas about 1/2 wouldn’t pay, and the lower income areas we were chasing them for rent constantly almost every month. People usually ended up paying, and if not they just moved out. We have had to do about 3 evictions in 8 yrs.
My number of rentals would be based on the mortgage payment you can handle regardless of weather or not they could pay and if you have someone who can go out to “fix” stuff pretty quickly and inexpensively.
We had almost 40 at one time, and I noticed that around Christmas about 1/2 wouldn't pay, and the lower income areas we were chasing them for rent constantly almost every month. People usually ended up paying, and if not they just moved out. We have had to do about 3 evictions in 8 yrs.
The reason 1/2 wouldn’t pay is that you’re a weak landlord. Very few of my tenants fail to pay because they know with 100% certainty that I WILL post the eviction notice the day after the rent is due and I WILL file the eviction 4 days later (the first day allowed by law). My tenants have seen deadbeat tenant’s possessions put on the curb and be hauled away to the dump.
I also don’t have to “chase” my low income tenants for the rent. They call me during the first four days of the month when they have the rent. If they don’t call me, I post the eviction notice on the 5th and promptly evict them.
This is a business. I can not and will not accept 1/2 of the tenants not paying in December or any other month. In fact, I will not accept even ONE tenant not paying ON TIME.
Being a weak landlord is a SURE way to lose your business. That’s probably why you said that you “had almost 40 units at one time”.
Mike