Hiring a Property Manager and “Fees” That’ll Kill Your Cash Flow

Episode #958
Hiring a property manager can be one of the best or worst decisions in your real estate investing career. The right property manager can give you the time to scale your portfolio to new heights, all while increasing the revenue on your rental properties. But the wrong property manager can drown you in unnecessary fees, push time-consuming tasks back on your plate, and leave your properties worse off than they were before. How do you distinguish between the two when every property manager tells you they’re the best in the business? In today’s show, we’ll show you how.
After building their real estate portfolios, Luke Rzepiennik and Michael Vialpando struggled to find property managers that fit their standards. They both had portfolios of short-term rentals, but no manager in their area was making the cut. With busy schedules and full-time jobs, neither of them could drop everything to become the perfect property manager. So, instead, they started Renjoy to not only manage their own properties but other investors’ properties as well.
If you’ve struggled to find the right property manager in your area or are at the tipping point of needing one, Luke and Michael can help. They give a masterclass on property management, from the exact questions to ask a property manager to signs of a great one, red flags to watch out for, and when it’s time to stop managing your own properties and start hiring it out. Plus, we’ll share the huge mistake most rental property investors make and the little “fees” that can kill your cash flow when using a property manager incorrectly.
Find a trusted property manager in your area today with BiggerPockets Property Manager Finder: biggerpockets.com/findapm
~~~~
Join BiggerPockets for FREE 👇
www.biggerpockets.com/signup?...
~~~~
Expand Your Investing Knowledge With the BiggerPockets Books:
store.biggerpockets.com/?utm_...
~~~~
Find an Investor-Friendly Agent in Your Area:
biggerpockets.com/agentmatch
~~~~
Find Investor-Friendly Lenders:
biggerpockets.com/findlenders
~~~~
Property Manager Finder:
biggerpockets.com/findapm
~~~~
What Does a Property Manager Do? Here’s the Job Description:
www.biggerpockets.com/blog/pr...
~~~~
Do You Need a Property Manager-or Can You Manage Your Properties Alone?
www.biggerpockets.com/blog/do...
~~~~
78 Questions To Ask A Property Manager Before Hiring Them:
www.biggerpockets.com/blog/qu...
~~~~
Connect with Michael on BiggerPockets:
www.biggerpockets.com/users/m...
~~~~
Connect with Luke:
www.biggerpockets.com/users/l...
~~~~
Connect with David and Rob on BiggerPockets:
David: www.biggerpockets.com/users/d...
Rob: www.biggerpockets.com/users/r...
Show notes at: link.chtbl.com/BPRE
00:00 Intro
01:25 Building Their Rental Portfolios
04:07 Property Management Problems
11:59 Questions You MUST Ask
18:42 When to Hire and Pricing
24:53 These Costs Will Kill Your Deal!
28:26 Medium-Term Rental Management
31:25 Saving Your Time
36:35 Connect with Luke and Michael!

[@grabthemappodcast]

Your point about how a property manager can free up time for other activities really resonated with me. It’s a good reminder of the value they bring beyond just managing the property. Thanks for the great content!

[@islanderik]

As a property manager, I would say I’m one of the best out there. Heck, I managed 12 properties that were in pre-foreclosure for almost 10 years. Try keeping those tenants happy and the rent coming in holy moly.

[@IssacEinstein]

Good.

[@betterhomesnc2437]

Property manager/ investor here in Fayetteville NC.
I actually started as an investor-self manager because I hated the local bigger PM's they were all trash. My wife at the time worked for the largest PM in the area and I heard all the horror stories. They weren't really managing anything other than the rent collection.
I would say a good PM definitely gives you your time back. But we also offer you a buffer and layer of insurance ensuring our properties are compliant and people want to live there. But most importantly a good property manager should be able to keep rents stabilized at market rent. Some of my best deals have been tired land lords who have garbage PM's that can't keep the rents up to market and the owner ends up net negative.

[@Mr.DMZ.]

My father is my property manager as i live in a different state. Sure it cost me money but it goes to my dad and he is amazing as a PM

[@JulietAgbonah]

This podcast is such an eye opener for both property managers and property Investors. I feel enlightened.

[@charliebognar5276]

Good old times when Josh and Brandon were around

[@michaelburrell4685]

I liked David and Brandon the best.

[@eugeneeugene3093]

30% on gross is like paying an extra layer of taxes

[@fornyctravelers]

Thanks, Guys for all this information!

[@tc6984]

Why cant i pay a property manager 20 -25 % off of NET income. They are benefiting from your gross on fix costs i.e. taxes, insurance, etc.?

[@spencerhall4452]

No one’s fixing any appliance for 75$ lol

[@MamorLpew-pk1qn]

Those property managers give off “fees” vibes

[@JulietAgbonah]

I know right

[@michaelvialpando]

​@@JulietAgbonah 😂 lol my bad