Use A Property Manager or Do It Yourself [Video]

6th Interview with Marc Cunningham of Grace Management & Investment.

PmDave: What are the advantages of using a property manager verses doing it yourself (DIY)?

Marc Cunningham: People do it themselves until they run in to a problem, if you have a good property and a good tenant there is no reason to hire a property manager. The first time you encounter a problem as an owner which you will eventually you are going to pick up the phone and call a property manager. Because people do not know how to handle problems.

And in this day in age with as much litigation there is, with the legalities and the new landlord tenant law that are coming in to effect. There are so many different aspects to property management you really have to be a jack of all trades to really know what you are doing. You need to have the demeanor as a landlord to be nice to a tenant yet be firm with them as well.

When they say they are not going to pay the rent or will be late, how are you going to handle that? If a tenant knows you are an owner it is much more difficult to deal with them. I have properties of my own and it is more difficult for me to have that conversation with a tenant when they know I am the owner of that property. Hey you are the owner you can bend any of the rules you want to bend. You can charge me a late fee, you can wave this you can repair this.

However when I am the property manager it is much more clear and straight cut and we can continue to keep that relationship with the tenant going strongly. I would love to help you out on this but these are the rules this is what the lease states we have to go by the lease. So there is that benefit to have the mediary relationship with the tenants.