CalculateRealEstateROI

Multifamily · Guide

Multifamily Property Management

On-site vs third-party — when each works at each scale.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Key takeaways

  • Under 50 units: third-party.
  • 50–100 units: part-time on-site.
  • 100+ units: full-time on-site team.
  • KPIs: occupancy, collections, turnover.
  • Quarterly business review.

Core concepts

Third-party

4–6% rent; broad coverage.

On-site team

Manager + leasing + maintenance.

KPIs

Occupancy, collections, work-order response, turnover.

Step-by-step framework

  1. 1Interview 3 PMs.
  2. 2KPI framework defined.
  3. 3Quarterly business review.
  4. 4Annual contract review.

Common mistakes to avoid

  • Cheap PM at scale.
  • No KPI framework.
  • Skipping QBR.

Frequently asked questions

Best PM fee?

Negotiate down at scale.

KPI threshold?

95% occupancy, 98% collections.

On-site break-even?

Roughly 100 units.

Switch PM?

If KPIs miss two quarters.

Action checklist

  • ☐PM contracted.
  • ☐KPIs defined.
  • ☐QBR scheduled.

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