Quoted from Whysnow:
Property managers typically get 1 month rent commission plus 10% of monthly rent.
That is a very large cut for doing very little for me.
I also dont enter into situations where the motives of someone I am hiring are different than my motives.
Agents often want to get the unit filled, care little about proactive maintenance, and actually benefit from turnover (1 month commission each time)
As a personal landlord, I have had no problem finding tenants so see no value in having someone else make that decision for me.
I desire to have 2 year tenants become 5 year and 5 year become 10 year. I want to decrease turns as each time I do turn it is effort and money yo clean, paint, etc...
If an agent works for you, then by all means go for it. I like making sure I find the right people and if/when it goes wrong it is on me. What is the agent doing when 'oops I got you a crap tenant that trashed the place and did not pay rent' ?
I can totally see using an agent when you dont live near your place or they bring value for a skill you dont have.
In totality, I see little time or value in paying someone ~15-20% of my yearly take on a rental for the little effort they need to put in.
Again, if it works for you then great, but around here that is like paying 2500-3000 for someone to fill a likely sub-par tenant and then collect rent.
Finding a property manager is no different that finding a realtor...some realtors are going to be awesome and sell your property above asking in one day, others are going to take bad pictures, forget to list it everywhere, etc and it will sit. Property managers are the same way, you just have to find the right one. Most good PM's have staff that handle repairs and turns (and mowing), and can actually save you money due to scale.