Ok, the truth about property mngmnt - Posted by Terri

Posted by joe on October 11, 2003 at 12:58:36:

I have experienced one incredibly bad property management company and one incredibly good property management company.

The main reason the bad one was so bad was that the primary person managing my properties wasn’t an owner of the company and was just a worker bee. She could care less if the property was rented or not or even if the current rents were at market rates or not.

The incredibly good property management company was directly run by the owner (w/ an assistant). The owner naturally had an incentive to get my cash flow going so they take their cut.

They also only charge 5%. I have no choice but to use property management since I live 300 miles away from my investments. However, even if I lived in the same town, I would choose to continue using the “good” property management company since my time is worth more than the 5% they charge.

Ok, the truth about property mngmnt - Posted by Terri

Posted by Terri on September 30, 2003 at 12:31:11:

Please tell me how many of you manage your investment properties yourselves… and what is your reason for not using a management company?
Also, would you please tell me (and the list) your best and worst management experience stories?

On the other hand, how many of you use a management company and why?
What is the typical cost for this?

Re: Ok, the truth about property mngmnt - Posted by martyv

Posted by martyv on October 02, 2003 at 04:51:14:

I think you can and should manage the properties yourself. At least until you have so many that you need or want help. I agree with the person who said you need to at least know how to do it so that you can supervise the manager that you hire.

I think the best way would be to hire/train your own manager when you get enough rentals that he/she could make enough off the management that it would be a significant part of their income. Then make the deal that they only manage your rentals and no one elses. That way you would have better control.

I have done property management for pay…don’t like it. I have observed a lot of property managers and the real pros are out there but not in the majority.

Re: Ok, the truth about property mngmnt - Posted by RichV(FL)

Posted by RichV(FL) on October 01, 2003 at 20:17:46:


I manage my own. The reson why I have seen the condition some property managers in my area leave rentals. They could care less. They never check them and they will throw anybody in just to get the places rented.

The reason why I know this…I hang out with alot of realtors in my area.

I do have to say…there are a few I have met that are ok, but I still like watching over my own places. And saving the managment fee is nice. :slight_smile:

Great Success,


Re: Ok, the truth about property mngmnt - Posted by AL

Posted by AL on September 30, 2003 at 21:30:20:

I’ve managed a 4-family for 15 years. It’s not a headache if you do it right. I’ve only had 1 formal eviction during that time, and that was a town officials daughter with great references! I’ve probably let vacancies go a little too long but I figure it’s worth waiting for a good tennant. I never used a mgmt co. For me the fees dont justify the benefit. Remember dont hire a mgmt co because you dont know how to manage. You still have to supervise them.

Re: Ok, the truth about property mngmnt - Posted by Carl

Posted by Carl on October 08, 2003 at 12:10:37:

I switched over to property management after buying my fourth building(6 plex). I would not continue buying if i didn’t have property management since I have a day job. I know HOW to do it, I?ve done it for 4 years but i didn’t really enjoy doing it. Plus to be honest my property manager is simply better at it then i am. I get bored of things easily and find it a lot more exciting doing the financing and exploring for new properties. It feels really good buying a property, handing over the keys and then not receiving the phone calls. :slight_smile: But i would definitely recommend doing it by yourself for a while to know how it can be so you can judge your property management. Mine costs %7.5 but to be honest he has rented my places out for more then I originally thought was market so he has paid for himself in some cases. Mine was recommended by my real estate agent who uses him for all his buildings.

Re: Ok, the truth about property mngmnt - Posted by jeff

Posted by jeff on October 01, 2003 at 16:32:41:

I had a company manage my first rental. It was a nightmare. I now have 5 rental houses (they are easier than multifams, I know) but I think you have more control if you do it your self. It is work, but I save 10% and I care about the property. I have good tenets and have had only minor late payment problems now that I do it myself.