I’m in the process of buying two newly constructed SFH in the Dallas, TX area as rental property. I live in California and I’m thinking through whether to hire a property manager or to manage it long distance. This is a question because the properties are brand new and most things are under warranty. In theory, the property manager would have to do less than with an older property. The management company I’ve been talking to won’t budge on the fees which are 10%. Any thoughts or do you have a similar experience to share?
Also, any suggestions on how to find a property manager ?
Congrats on the investment property purchases, I can’t offer any names of PM’s in the Dallas area, but 10% with only two homes sounds about right. Now think about this, where else can you hire a property manager for lets say $200/month, to answer the phones, coordinate repairs, collect rents, go after dead beat renters, or find new tenants for your properties?
Just because they’re new homes, doesn’t mean they do not require maintenance or repairs, instead of calling the plumber, you call the builder or their rep.
As you acquire more properties, you should have your management fee reduced, just based on volume. I pay 8% after acquiring about 8 units. SFH and Duplexes, but even after acquiring more property it hasn’t gone down from there.
Please ensure you locate and obtain a very seasoned property manager, with lots of ads, properties, and staff. The bigger the better for you! Because you’re only paying 10% of collected rents.