Why is property management so polarizing amongst residential landlords?
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[{"id": "ftb2lzk", "text": "It just matters what your investment plan and path is. Some people want there hand in everything, others might pay for a manager when they don\u2019t need one its all about the investors making it situational every-time. Other have bad luck with management companies. Also another big issue is that finding a good property manager is like a needle in the haystack you will never find someone who cares about your property as much as you would but you can definitely find someone capable and smart to run your investment at its full potential and be always adding value it\u2019s just very very difficult!!", "replies": [], "depth": 1}, {"id": "ftb6ziu", "text": "Possibly smaller margins, happen-stance landlords, or side hussles.", "replies": [], "depth": 1}, {"id": "ftbee63", "text": "Shitty property managers are not worth it, so if you get burned by one, then you swear off PM's forever. Or the margins are not super fat, so better to deal with it in house.\n\n&amp;#x200B;\n\nIf you can find a professional property manager though, it will save money in the long run if you are an active investor. Who want's to answer phone calls at 1AM about a broken toilet?", "replies": [], "depth": 1}, {"id": "ftbo9tb", "text": "A lady owned one side of a duplex and rented out the other side. She had a property manager as she pretend to be a rental herself.", "replies": [], "depth": 1}, {"id": "ftbp4aj", "text": "Because some people know how to manage, and others don\u2019t. If you don\u2019t have nearly the entire management process automated by computers - you\u2019re doing it wrong and should hire a property manager.\n\nIt should take no more than 3 mouse clicks to list an apartment for rent. No more than 5 clicks and 5 minutes to set up a showing, approve an application, have the lease signed, and the tenant moved in. 0 clicks to do all rent collection and income. And no more than 2 clicks and a phone call to a professional to address a maintenance request.\n\nPeople who know how to do this can manage their own portfolio with a few hours a month invested. People who don\u2019t would be taking on a full time job.", "replies": [{"id": "ftj6now", "text": "Could you elaborate a little more on this. Are you using commercially available software for all these segments", "replies": [{"id": "ftji05o", "text": "Tenantcloud, Buildium, Appfolio - any of these will work. Personally I use Tenantcloud because it\u2019s only $90 a year.\n\nSome email and texting automation (auto replies directing people to an appointment booking software) is also employed, but that\u2019s free.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ftd6dg1", "text": "Some people get into real estate specifically so that they can have an investment they can see, feel, and have control over. \n\nAnd most(?) people are terrible at delegating authority.", "replies": [], "depth": 1}, {"id": "fthmt2v", "text": "&gt; I have manager for my small business, I'm paying him $40k+ a year! I pay that because it makes my life easier, I don't want to deal with a bunch of min wage employees and customers asking for me. Same thing for tenants. What's the cause of this polarization?\n\nI am glad you are finding success there and this isn't meant as snark, but I see the same complaint from my small business clients as PM's.  They never trust their managers (frequently for good reasons), but also want to hire as cheap as possible.  Then they complain they have to micromanage everything and if they step away for a second everything goes to shit (and that is frequently true).  \n\nHalf the people in PM don't know what they are doing.  The other half frequently don't want to work with clients who don't let them do their job or want to nickel and dime them.  \n\nYou also have the problem of good PM's quickly figuring out they can make a lot more doing other RE jobs like brokerage, consulting, etc or jumping to a larger company for AM/regional manager/portfolio management etc.  \n\nIts not really that polarizing.  It simplifies down to few business owners want to pay more than they have to for anything and frequently cut corners, then when shit breaks they get drug into it since its their money at stake.", "replies": [], "depth": 1}, {"id": "ftiaivg", "text": "I'd *love* to hire a property 'manager', but I've yet to find one that offers services I actually _need_ at prices that are reasonable.\n\nEvery manager I've looked at has roughly the same services and fee structure:\n\n1.  50%-100% of 1 months rent for marketing/screening/leasing to a new tenant + some sort of yearly 'renewal fee'.\n2. 10% for collecting rent, bookkeeping, fielding tenant calls, scheduling repairs, and (hopefully not often) evictions.\n\nThe first is actually useful; I'm not an expert in any of those things and it's a significant time investment - It could easily take me an extra month to place the right tenant on my own, so I'm happy to pay... and I do: there are property managers who do tenant placement for 1 months rent **without the ongoing contract or yearly renewal fees.**\n\nThe second feels like a total rip-off; My tenants auto-pay with Cozy and my accounting takes _maybe_ 15 minutes per month. I get a call/text from my tenants maybe once per quarter and 90% of the time it's an issue I can fix myself for under an hour and $50. For that a PM would charge me about $300/month plus likely $50 for each visit by a handyman and marked up cost of materials.\n\nWhat I really need a single point of contact for a handyman/landscaper/super/contractor. If I could pay that same $300/month to one entity for the following, I'd sign up immediately:\n\n* Once a month (roughly), stops by and takes a quick glance around the exterior property and resolves obvious minor issues. I'm talking branches on the roof, clogged downspouts/gutters/drains, or any other obvious hazards.\n* Basic exterior maintenance for the time of year: lawn is mowed, leaves are raked, gutters are cleaned. I'm not talking fancy landscaping, just keep it presentable.\n* 1-2 times a year: do a quick check-in with the tenants for any 'minor' issues they may not have reported. Walk through the interior of the property looking at the sinks/toilets/hot water heaters for leaks. Change the furnace filters.\n* Fix any minor tenant reported issues and report back to me with photos and a quote if any larger issues are found.\n\nAnyway, that's my reasoning: they don't make my life easier in the ways I actually need.", "replies": [], "depth": 1}]