Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

When to Hire Property Management: A Guide for Investors 🏢✨ #realestatetips

8 Dec 2024 · 1 min

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In this segment, the presenter explains how the traditional rule of needing 100 rental units before hiring a full‑time property manager and maintenance staff has evolved. Modern investors may consider hiring at as few as 60 units, depending on the rental income generated. The decision hinges on whether the property’s cash flow can comfortably cover typical property‑management fees—generally 6‑8% of gross rental income—while still leaving sufficient profit for the owner. The speaker emphasizes evaluating the income‑to‑fee ratio to determine if in‑house or third‑party management is financially viable.

Chapters

When I first started doing this, it was like you had to have 100 units before you could hire your own full-time property manager and a full-time maintenance person. And then, you know, got down to where it's 80, and now it could be as low as 60. It just depends on, you know, what kind of income that property is generating and whether it throws off enough income that, you know, 6 or 8% of that, or, you know, whatever the going rate is for those size units for property management fees, is, is there sufficient money to pay those property management fees to your actual people or a third party? And then left over for you.