A property manger can manage your property easily and professionally and you can get many advantages from your property manager. Since property management is very vast area which requires expert level of knowledge and skills in relevant area. It requires good book-keeping knowledge to maintain the all account details of property along with managerial skills to manage property professionally. If you have much property and you can’t have full time to manage it then it will be beneficial for you to take the help of a property manager. A property manager manages your property professionally therefore you can expect more profitability.
I am a big believer in outsourcing as much as you can. Having a property manager is def essential for you to be efficient as an investor. If you are trying to do everything yourself, you will lose out on potential deals you could be getting. Simply put it saves a lot of headaches. My two cents.
I have to be the negative one here…I cant stand property managers…This is my experience and please dont take this personally cause Im %100 sure that all property managers are NOT the same…I have gone through 3 different property managers on my buildings and I hate every one I have come across…they are thieves,they bill for unnecessary work,they could care less if my units are rented out on a full time basis,they overcharge for work…i could go on and on…My advice is if you can manage yourself or stay out of the cashflow business as it is nothing to write home about…The NET money is a joke after the mortgage,property manager,water,maintenance,insurance,vacancy is factored in…You are lucky if you have lunch money after all that is taken out…Property managers make %10 for taking zero risk and they gain a full time victim to abuse…They mow the lawn too much,they shovel the snow too much,they charge the property owner when the tenant clogs the sink or toilet,the are the worst…Reconsider the cashflow business…Its more aggravation that its worth…
Mark Evans shared something with me about property managers.
He said they hire two companies in each area and then keep the other company ready to take over should the first one mess up.
I have not tested this theory yet but it seems sound.
I do agree with the theft and unnecessary billing issue…HUGE problem with most property managers.
It doesn’t work. PMs are crooks and a half. They’ll let the troublemakers in and then they’ll make excuses and say the building is in worse condition than the one run by the other and that it’s an apples to oranges comparison. They might compete or match the other’s service charges, but at the end of the day, they’ll find a way to bill you for something else so you’ve made nothing.
Manage it yourself and/or reduce a tenant’s rent for doing some of the work is your best bet. If it’s a SFH, put it as a condition of the lease-option that they manage and repair the property themselves.
David
Realtor, Landlord & Investor
Why would someone “hire” two companies, wouldn’t that be double expense and for what? I just have to wonder what is meant by hiring the second company, how they are paid, etc. It’s hard enough to get a property to cashflow while paying one management company, but TWO? Something just doesn’t sound quite right about that recommendation. Considering the source, that’s not so much of a surprise.
I think he means half the properties managed by one company, half managed by a different company, and they both know it. Not 2 companies on each property.
I’ve seen the sort of tenants that the local property managers put into units. No thank you.
When I bought a sfh that was 45 minutes away I asked around if anyone knew of a good PM. Everyone said no, they don’t know of any good ones.
But I interviewed 3 and picked one, a little family owned business and its been ok. Not great, but ok. You really have to manage the manager. Like personally approving the tenant that they find, and having them call you first before doing any repairs.
I think its a necessary evil, just like tenants. But I’d much rather deal with my PM than a tenant. How many landlords sell in disgust b/c of dealing with tenants? You have to ask yourself if you want to be an investor or a landlord.