I'm starting to sell my properties, doing 1031 exchanges, and I'm considering using a property manager

Just understand that an owner's goal are diametrically opposed to a property manager's. Property Managers make money on repairs - owners try to save money. Property Managers often only make money when they RENT a place, not by KEEPING it rented.

Economics of scale will define how much attention you get, and rightly so. Here's what I mean.

A good PM knows that each land lord will be a 100% new ball of yarn to untangle. You will have different goals, motives, and expectations to satisfy. Some of your style will mesh perfectly with their policies and procedures...some of it won't. The PM will not know where you fit in that grand scheme until you've been in business for awhile. So....the PM will decide how much is it worthwhile to get into business with you?

Let's say you have 5 units that rent on average for $1000/month each. At 10% per month of rent plus one leasing fee per year at 1/2 month's rent, the PM company will earn $6000 from rent fees and $2,500 from leasing fees for a grand total of $8,500. Take out taxes, overhead, etc, and they will net somewhere around $6,000 - $6,500. Will that be worthwhile to a manager to be on call (or hire someone to be one call) 24/7? Maybe....

Same scneario but with 50 units. Ah, now we're talking $60,000 per year in net profit. Will the PM pay more or less attention to you?

PMs are like the rest of us: they want to maximize profit and minimize hassle. Also, getting a new client "on board" requires time and effort. Will the PM be happy to take you on as a new client as you are downsizing and trying to exit the business, which means their income from you will be shrinking? I don't know. Maybe yes, maybe no.

The best PMs I know look for "whales"...people with 50+ units and growing bigger. The mid-range PMs will do between 20-50 unit customers all day long as they grow toward being the best. The shoddy, half-butt PMs will take anyone because that's all they can get.

Keep this in mind while shopping. They will evaluate you at least as much if not more than you evaluate them.

Good luck!

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I'm not exactly sure why you think a PM makes no money by keeping a unit rented. I'm commission only. Most PMs I know are commission only. The ONLY way I make money is collecting rent on a unit monthly. I make NOTHING renting a unit or renewing a lease.

And yeah those $40 toilet repairs make me rich.......

Just like any other industry, there are honest PMs & PMs who define schmuck. Go over the contract & make sure you understand it.....that will likely let you know if you're dealing with a schmuck or not. Your gut is a good judge as well.

Julie, the PMs around here charge a fee PLUS percentages of rents, and repairs are quite expensive to the owner. Maybe the PM isn't making much on them either, I don't know, but the owner is paying WAY more than he would if he did it himself or even hired the trades themselves.