Question:
“I plan to buy an investment property and am curious, do you recommend hiring a manager or doing it yourself?”
Answer:
Great question. And like many, it depends…
- Do you have the time to manage the property?
You can go for long stretches where all you do is collect rent. But then you can have vacancies and need work done, which take time.
- Do you have the knowledge to optimally manage it?
If you’re not familiar with real estate or don’t have a business mind, you might want a pro. Or perhaps this can be an opportunity for you to learn and grow.
- Can you have a thick skin when needed?
Unfortunately, being a landlord can sometimes mean being firm or tough, even with nice people.
- Can you afford a professional manager?
They typically run 6-10% of rent. - Can you afford NOT having a professional manager?
Bad decisions can cost you more than a manager does. Or perhaps you make a high income, and taking time away from work to manage the property would cost you more than what a manager would.
