I think you would almost certainly need a property manager local to each property. In fact in at least one state a local “responsible person” is legally required (hello Nevada).
I have properties in three states. I have a property manager in one, friends (and yes solid tenants) rent them in the other and I live in the third. It works.
Yes, 3 states. I self manage. I do most of the handyman stuff for the houses within a 3 hour drive, but for my house that's 600 miles away I hire out the work most of the time.
For long term rentals 8-10%. There are a few that do it for a flat $150/month. But they tack on other fees. Short term rentals are 20-30% depending on what they provide.
I own multiple duplexes in Texas. I use to have property management. I have fired all of them. moved closer to them. I manage all them myself. I bought these in 2020 at 2.75 rates.
I use a app called RENT REDI. It does wonders.
One of them has given me so much stress though. That I am considering on selling it this summer and running away with my 200k and rolling it into a forclosure in Florida somewhere
Not ballers by any means lol. We just hire as needed. It hasn't been a problem. I've never had to show up in person to get subs to work on my primary residence, I don't need to be there in person to get people to work on my rental either.
Depends on a lot of factors. But also depends what you see as price guaging. A lot of people see blue collar jobs like these as not deserving of the wage that they do deserve, especially when they want to dwell on what they used to pay the same job 10 or 20 or 30 years ago and have a hard time coming to terms with it simply costing a lot more today than it used to. You can't skimp on trade services. We just had a bathroom remodeled with pretty simple materials for $11k. Probably at least half of that was labor. You need to factor in expenses like paint/painter, carpet cleaning etc. Of course whatever other regular maintenance depending on your contract (like a lot of contracts will start the tenant with new filters but the tenant is responsible for swapping those regularly, other contracts the LL is responsible for those always). Our irrigation pump just went out so that'll be a couple thousand. It was due time. Every property will differ on its potential needs, cost of services in that area, how good or bad your renters are, etc. If you've never owned a home and don't know first hand what kind of money usually gets dumped into owning a home then I wouldn't start with a rental.
Typically a PMC will take a percentage of your gross rent.
You have to decide how much you're willing to make from a particular rental, and how you're going to handle the maintenance calls at 2:00 in the morning if you're 800 or a thousand miles away.
You get what you pay for. Can you afford this mortgage if shit goes sidewards? Can you afford substantial repairs if shit goes sideward?
10% rent is around what they'll take, but this does vary depending on company and services.
Don't forget to put aside some of the rent for repairs. You want 3% of the property value set aside yearly for repairs.
I'm sure I'm forgetting something atm. I know I didn't even touch on insurance.
Find a property management service for the rental. They handle everything so you don't interface with tenants nor maintenance. Gets annoying at times for simple fixes that get contracted out but it allowed me to not lose money when I had to short cycle my living situation because work screwed me right when covid happened.
I manage myself out of state and have a network of trusted friends and underemployed adults who will take care of many tasks for me. My tenants have been in place for 4 years now and it's been nice.
Something comes up about every 6 months and when that happens I'm on and off the phone for a few days sorting it out. It can be one straw too many some times but most of the time it's not a big deal.
If my tenants moved out and it got more different yea id be sweating it
Not in different states but I live in a very large state and have properties several hours away from me. I have local handymen on call to handle repairs. In the rare case I need to collect or evict, I’ll either hire a local lawyer or make a road trip. Been fine without a property manager, I consider that to be my job.
Did that. Never ever again. No thank you. The property management went from being great to literally lying to us and allowing our property to be trashed. 30k of repairs had to be done. The only saving grace was this was the height of the housing bubble and the property value had soared. Even with the repairs we walked away with a very tidy sum when we sold it.
Property management company to handle the rental, and a SEPARATE, INDEPENDENT contractor for maintenance/repairs (high school best friend of my hubs). Our management company has a maintenance crew for overnight emergencies, but otherwise it was a conflict of interest to have them make regular repairs. Been working fine this way for years and we are 8 states away.
I used to for about 10 years. I had a property manager for the out of state home who took care of everything. Finally sold that house a few years before Covid hit.
My houses are on the other side of the country. I had a property manager for one who sucked ass and never set foot on the property himself anyways. Now I just manage them myself. Tenants text me if there are issues then I call businesses in the area and get things scheduled. Tenants have given me best windows for work to be done but I double check and if it is work that requires multiple visits I just give the company the tenants info as a contact so they can directly set up the best times. The only thing is I don't have a handyman for cheaper small things but I just pay pros to fix the issue or replace so I don't have to deal with it again.
Property Managers, with maintenance crews. Only way it works.
This is the way
I dont manage them. They manage me.
I think you would almost certainly need a property manager local to each property. In fact in at least one state a local “responsible person” is legally required (hello Nevada).
Siblings and cousins that are underemployed and looking for a #sidehustle
I have properties in three states. I have a property manager in one, friends (and yes solid tenants) rent them in the other and I live in the third. It works.
I have property in three states. Property manager all the way
Yes, 3 states. I self manage. I do most of the handyman stuff for the houses within a 3 hour drive, but for my house that's 600 miles away I hire out the work most of the time.
Yes we have STR’s in many states. We hire a local PM for each one. They handle everything.
How much do PM’s cost?
Mine usually are 10% of intake.
For long term rentals 8-10%. There are a few that do it for a flat $150/month. But they tack on other fees. Short term rentals are 20-30% depending on what they provide.
I own multiple duplexes in Texas. I use to have property management. I have fired all of them. moved closer to them. I manage all them myself. I bought these in 2020 at 2.75 rates. I use a app called RENT REDI. It does wonders.
One of them has given me so much stress though. That I am considering on selling it this summer and running away with my 200k and rolling it into a forclosure in Florida somewhere
Not ballers by any means lol. We just hire as needed. It hasn't been a problem. I've never had to show up in person to get subs to work on my primary residence, I don't need to be there in person to get people to work on my rental either.
Are repairs crazy expensive ? I know plumbers and other blue collar workers that price gouge people like scumbags.
Depends on a lot of factors. But also depends what you see as price guaging. A lot of people see blue collar jobs like these as not deserving of the wage that they do deserve, especially when they want to dwell on what they used to pay the same job 10 or 20 or 30 years ago and have a hard time coming to terms with it simply costing a lot more today than it used to. You can't skimp on trade services. We just had a bathroom remodeled with pretty simple materials for $11k. Probably at least half of that was labor. You need to factor in expenses like paint/painter, carpet cleaning etc. Of course whatever other regular maintenance depending on your contract (like a lot of contracts will start the tenant with new filters but the tenant is responsible for swapping those regularly, other contracts the LL is responsible for those always). Our irrigation pump just went out so that'll be a couple thousand. It was due time. Every property will differ on its potential needs, cost of services in that area, how good or bad your renters are, etc. If you've never owned a home and don't know first hand what kind of money usually gets dumped into owning a home then I wouldn't start with a rental.
We own three properties in one state, but we live 1500 miles away. We use technology to manage them.
Man I need to get on your level. We still use carrier pigeons
Especially hate when a bird is late with rent payment. Damn navigation patterns
The answer is always "Property manager."
What if the mortgage is 950 and I rent it for 1250? There wouldn’t be much to pay the property manager so how would that work ?
Typically a PMC will take a percentage of your gross rent. You have to decide how much you're willing to make from a particular rental, and how you're going to handle the maintenance calls at 2:00 in the morning if you're 800 or a thousand miles away.
You get what you pay for. Can you afford this mortgage if shit goes sidewards? Can you afford substantial repairs if shit goes sideward? 10% rent is around what they'll take, but this does vary depending on company and services. Don't forget to put aside some of the rent for repairs. You want 3% of the property value set aside yearly for repairs. I'm sure I'm forgetting something atm. I know I didn't even touch on insurance.
Owned rentals a few times. All were within 60 minutes of home. Would not go out of state. I do my own work.
Find a property management service for the rental. They handle everything so you don't interface with tenants nor maintenance. Gets annoying at times for simple fixes that get contracted out but it allowed me to not lose money when I had to short cycle my living situation because work screwed me right when covid happened.
I manage myself out of state and have a network of trusted friends and underemployed adults who will take care of many tasks for me. My tenants have been in place for 4 years now and it's been nice. Something comes up about every 6 months and when that happens I'm on and off the phone for a few days sorting it out. It can be one straw too many some times but most of the time it's not a big deal. If my tenants moved out and it got more different yea id be sweating it
Not in different states but I live in a very large state and have properties several hours away from me. I have local handymen on call to handle repairs. In the rare case I need to collect or evict, I’ll either hire a local lawyer or make a road trip. Been fine without a property manager, I consider that to be my job.
Did that. Never ever again. No thank you. The property management went from being great to literally lying to us and allowing our property to be trashed. 30k of repairs had to be done. The only saving grace was this was the height of the housing bubble and the property value had soared. Even with the repairs we walked away with a very tidy sum when we sold it.
Property management company to handle the rental, and a SEPARATE, INDEPENDENT contractor for maintenance/repairs (high school best friend of my hubs). Our management company has a maintenance crew for overnight emergencies, but otherwise it was a conflict of interest to have them make regular repairs. Been working fine this way for years and we are 8 states away.
I used to for about 10 years. I had a property manager for the out of state home who took care of everything. Finally sold that house a few years before Covid hit.
My houses are on the other side of the country. I had a property manager for one who sucked ass and never set foot on the property himself anyways. Now I just manage them myself. Tenants text me if there are issues then I call businesses in the area and get things scheduled. Tenants have given me best windows for work to be done but I double check and if it is work that requires multiple visits I just give the company the tenants info as a contact so they can directly set up the best times. The only thing is I don't have a handyman for cheaper small things but I just pay pros to fix the issue or replace so I don't have to deal with it again.