Property Management
I have a question some of you more seasoned REI pros may be able to shed some light on. I am wondering what you think about using a management company to take care of the day-to-day landlord duties. I realize this will take about a 10% bite out of the rental income but it may be worth it until I can learn the ropes so to speak.
Being new to REI and yet to purchase my first property, I wonder if I am cut out to take tenant calls in the middle of the night, fix leaky pipes, clogged toilets, etc. My thought being to initially let the management company handle this until I become more familiar with the business of REI.
I do want to take an active role in the process of approving tenants, repairs, updates etc, and generally overseeing the operation but on my own terms and times as much as possible since I need to keep my day job and have a very busy home life as well.
What are some of your experiences with management companies? Or is this something that I should forget about and just simply bite the bullet, jump in and do it myself? 
Thanks,
pataz
Management companies do not want active owners. Buy an answering machine to screen your calls but take care of the tenants needs. For an emergency there is 911 here in Texas as backward and red neck as we are we still have 911. I did it myself for years and then sold the properties to tenant/buyers which still takes some management.
If you do not want the job then hire it out but give them complete control until they screw up. Find one that is reasonable maybe small for more personal attention.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
Good advice from Ted. I would contact Hibby and get his take on tihs as that is his main profession I believe.
Quote:
On 2003-12-02 17:04, Tedjr wrote:
Management companies do not want active owners. Buy an answering machine to screen your calls but take care of the tenants needs.
Management companies don't want active owners? hmm, interesting... I was under the impression that as the owner you needed to approve tenants, repairs, etc. That's fine by me since I would be looking to spend as little time a necessary micro-managing the day to day operation. Want the property working for me not the other way around.
Do you receive some sort of report/statement on a monthly or quarterly basis with what they have done as far as the managing the property?
Don't get me wrong, I still want what's right for the tenant too. It just that the management company has the knowledge to deal with the problems that arise and I can watch and learn from their actions.
Thanks for the replies.
pataz
I would learn the ropes by manageing a small purchase yourself. I would suggest an SFR or Duplex to start. Once you know the ropes then you will be well equipped to monitor a property management company.
I am not saying that it never happens, but I have never had a call in the middle of the night nor do I know of someone who fixed one at 3 am.
Enable your tenants to help you manage them. Have them call and get estimates for small stuff before bothering you first. One of my tenants just painted the interior of her place. I am paying for the materials.
Never purchased 1st one yet? Buy SFD & Manage your self. Join local Owners Association. Get some books on landlording. Check out NOLO Press. Has lots of selfhelp books. Read this site. If you have a few and decide to get management, you will know what to look for and what you require of them. You will learn much faster if you 'do it yourself'.
Never had a tenant call after 8pm. I did have a tenant call & tell me he had called out a plumber to change the front hose bib, was only going to cost $120.00. I informed that was his to pay not mine. He cancelled, i did it, Cost me $8.50 and 2 hr door to door.