Reasons for in-house management?
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[{"id": "fgtm47q", "text": "Decision to do in-house vs third party management comes down to weighing trade-offs between time and money, and then gauging your own level of expertise relative to someone you could hire. Of course you will make the most money doing it by yourself, assuming you have the level of expertise and skill required to be up to the task, and no one will care for your property\u2019s long-term interests as much as the owner. But if you feel like you\u2019re lacking in time or operational expertise, then it may make sense to outsource to a third party, and pay for their time/expertise at the expense of your financial bottom line. I wouldn\u2019t recommend blindly trusting a property manager though, as you\u2019ll want enough domain knowledge and expertise such that you can manage them and keep them on their toes in terms of performing their fiduciary duty to you as the property owner.", "replies": [{"id": "fguahl5", "text": "This is a great answer. I'd add that you mentioned expertise several times and that is the key word. If your in house property management is mediocre or worse and you have access to good or great third party vendors the third party will pay for themselves many times over.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fgvd0ha", "text": "I work for a small group of 4 individual multifamily investors as a property manager part time. They pay me $25/unit/month. The 200 unit portfolio I manages makes $215,000/mo in rental revenue.\n\n$25 x 200 x 12 = $60,000 / yr to hire me and do management in house\n\n$215k x 12 x .08 = $206,000/yr to hire a management company that takes 8% of revenue.\n\nThat\u2019s a huge difference.", "replies": [], "depth": 1}, {"id": "fh19atw", "text": "Mainly because you can have a much better sense of what is going on with YOUR units but also for some because it makes it more of a business rather than a passive investment and they have a job to go to everyday. Obviously not all investors want to be hands on so hire a manager makes more sense in that case but another thing to consider is that once you have enough units under management you can afford to hire staff and then you can do management for other building owners which can be pretty lucrative.", "replies": [], "depth": 1}]