Property Management for Beginners: Hire a Pro or Manage Yourself?

Salali anticipates significant appreciation for his two quarter-acre parcels in Vancouver, Washington, within the next couple of years, driven by favorable interest rates allowing refinancing for equity extraction and zoning changes permitting the addition of two ADUs per parcel.

Salali projects his property management company will grow to manage 1,000 units within the next three years.

Salali predicts a commercial apartment owner, currently self-managing 30 units at 77% occupancy and losing $185,000 annually due to vacancy, would achieve an additional $100,000 in yearly distributable income by hiring professional property management for $90,000 per year, thereby increasing occupancy to a stabilized 93%.

Salali expects large appreciation in his two quarter-acre parcels in Vancouver, Washington, within the next couple of years due to potential refinancing at lower interest rates and the ability to add two ADUs as a result of zoning changes.

Salali aims for his property management company to expand into small commercial spaces and reach 1,000 managed units within the next three years.

A self-managing owner of 30 apartment units with 77% occupancy could increase their annual net income by $100,000 (after property management fees of $90,000) by hiring professional management, which would improve occupancy to the stabilized regional average of 93%.