Key takeaways
- Self-managing works up to ~5 units in the same metro.
- Hire when time cost > 8–10% of rent.
- Managers should be hired on systems, not price.
- A bad manager destroys returns faster than vacancy.
- Quarterly KPI reviews keep managers accountable.
Core concepts
True cost of self-management
8–15 hours per unit per year, weighted toward turnover events.
Manager economics
8–10% rent + leasing fee 50–100% of one month rent.
Hiring filter
Tenure, portfolio size, owner ratio, vacancy track record, technology stack.
Performance accountability
Quarterly review of vacancy days, collection rate, work-order time.
Step-by-step framework
- 1Quantify your hours and dollar cost of self-managing.
- 2Interview 3 managers with the same screening criteria.
- 3Request a sample owner statement from each.
- 4Audit collection rates and average vacancy days.
- 5Sign month-to-month for the first 6 months.
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Common mistakes to avoid
- Hiring the cheapest manager.
- Skipping the sample owner statement.
- No quarterly review process.
- Letting deferred maintenance accumulate without quotes.
Frequently asked questions
Is 8% the standard rate?
8–10% is standard for SFR. Multifamily 5+ units negotiates to 4–6%.
Should I pay leasing fees?
Yes — incentivizes faster placement. Cap at one month rent.
Can I co-manage?
Tried often, rarely works long-term. Pick one model.
What's the biggest red flag?
A manager with 200+ doors and one staff member.
Action checklist
- ☐Time cost of self-managing quantified.
- ☐Three managers interviewed.
- ☐Sample statements reviewed.
- ☐Month-to-month trial contract.
- ☐Quarterly KPI review scheduled.
- ☐Vendor list and capex schedule transferred.
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