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Thread: Property Management Company

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    Default Property Management Company

    I own a home that I am going to rent out. I am moving two hours away. I am debating whether to hire a property management company or not. If anyone has experience with managing their own property vs hiring a company, please share.

    I feel I could make 1200-1500 more per year off of rent if I do it myself, but I also worry that I'll end up with a nighmare tenant and have to drive four hours round trip multiple times to file an eviction/go to court with someone. I am an attorney so I can do the legal work myself, but I am just trying to weigh the risk vs the cost.

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    Default Re: Property Management Company

    too many variables ... depends on neighborhood, depends on tenant, depends on whether you have reason to drive back to this area once a month for other reasons

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    Default Re: Property Management Company

    That's fair. There is a decent chance I will be driving back and forth to dance on select weekends anyway. The neighborhood is good for rentals, due to having a slightly better public school system than surrounding areas. I don't expect it to take more than a month for me to find a tenant. I also have a sister who lives one exit away from the house who offered to help me for a fee, basically do it for cheaper than a management company. I may just have her do it.

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    Default Re: Property Management Company

    ^^^ this situation sounds like it would be 'manageable' without a rental agent. The biggest things to worry about are ...

    - having you or someone you trust ( like your sister ) perform a monthly inspection while collecting rent, to make sure that tenants aren't trashing the place. Make sure you include a monthly inspection requirement into your lease !!!

    - having enough neighbor awareness and neighborhood LE coverage to dissuade 'strip out' artists. Copper wire and pipe are worth $3 per pound these days, and roof steel / appliances are also drawing big bucks at scrap yards.

    - having someone you trust ( like your sister ) available to be on the premesis in a matter of minutes if some sort of 'crisis' situation were to develop ( fire, personal injury, burst plumbing etc. )

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    Default Re: Property Management Company

    Ok I own rentals. I sold one and have 1 now. Mine is in the most exclusive area in my county. My first tenants great. My second ones destroyed the place. I mean I had ti gut the place and redo EVERYTHING. Cost me around 30,000 when all was said and done. I always rented the unit myself becaue of the area and it never took more than 2 weeks. This time I went with an agent but was a nightmare. I got great tenants though. A couple in their 70's. So I chose to not use the agent to mange it. There are perks such as they evict, do walk throughs , fix broken things but yes it's like 10% of the rent monthly. I felt strongly these were good people. I was at the property the first 3 months and they keep it spotless so I opt to manage myself. I'm thrilled they're renewing a year. I'm going today to do a walk through. If you don't already have tenants go with an relator. It took mine 5 months to get me a tenant but she got great ones and mange yourself. Just put in the lease you will do walk throughs every 3 months with option to terminate the lease if there's issues. Good luck! Rentals can be easy breezy or a big P.I.A.

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    Default Re: Property Management Company

    My first tenants great. My second ones destroyed the place. I mean I had to gut the place and redo EVERYTHING. Cost me around 30,000 when all was said and done
    Unfortunately, this seems to be an increasing problem for landlords. In fact, in the aftermath of the recent move by hedge fund and 'accredited investor' landlords investing in rental housing as a ( hoped for ) source of higher ROI at lower risk than they could get from bonds or stocks, many of those hedge funds and 'accredited investors' are now discovering that tenant damage repair costs, inability to legally evict for months thus loss of rent revenue, etc. are ruining their 'idealized' earnings projections.

    yes it's like 10% of the rent monthly
    Unfortunately, depending on local market rental rates, local property tax rates, etc., sacrificing 10% of rent revenues to a property management agent may flip a rental real estate investment from a 'winner' to a 'loser'.

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    Default Re: Property Management Company

    ^ I didn't buy my home for the purpose of it being a rental. I built it at 22 and lived in it until I built the home I live in now 10 years later so in my case I do very well. It brings me in a hefty yearly income and all though I did have to gut it, it was going on 21 so it needed a refurbishing. I didn't want to have to shell out that kind of money atm but if I want to sell it or sell my huge home I have now( when my daughter moves out) it's done. It did kill m to have to do all that and being single and having to fire 2 contractors and having 1 rip me off wasn't fum but at least it's done.

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