How Many Rentals Can One Person Actually Manage? - BiggerPockets Real Estate Podcast Recap

Podcast: BiggerPockets Real Estate Podcast

Published: 2025-11-19

Duration: 31 min

Summary

The episode explores the limits of self-managing rental properties, emphasizing that while individuals can handle a small number of units alone, scaling beyond that often necessitates hiring property management to maintain efficiency and profitability.

What Happened

In this episode, hosts Dave Meyer and Henry Washington dive into the critical question of how many rental properties one person can realistically manage. They discuss the balance between self-management and the need for property management services, highlighting that the decision to hire help varies significantly based on personal circumstances, such as job commitments and the systems in place for managing properties.

Austin from Reseda, California, raises a key question about when it becomes unreasonable to self-manage rental properties. Dave shares his experience, stating that he managed to handle 65 to 75 units before realizing that tasks were taking longer than expected, particularly with tenant turnover and maintenance. He notes that while he was able to self-manage initially, the complexities of managing multiple units simultaneously led him to consider hiring a property manager, particularly to enhance efficiency and minimize lost rent.

The conversation also touches upon the difference between property management and asset management. Henry emphasizes that while property management involves dealing directly with tenants, asset management focuses on the overall strategy and condition of the property. This distinction is crucial as investors consider scaling their portfolios while maintaining a high standard of care for their properties. Ultimately, the hosts agree that while self-management is feasible for a smaller number of units, beyond that, hiring a property manager may be essential for maintaining a profitable and efficiently run rental business.

Key Insights

• Self-managing rental properties can be effective for 5-10 units, but efficiency decreases beyond that.
• Tenant selection is critical to successful property management and minimizing issues.
• There are two distinct roles in real estate management: property management and asset management.
• Hiring a property manager becomes necessary when managing multiple units to maintain efficiency.

Key Questions Answered

When should I hire a property manager for my rentals?

The decision to hire a property manager often comes down to how many units you are managing and your personal capacity. Dave notes that he managed to handle around 65 to 75 units before feeling the strain of self-management. He emphasizes that efficiency in managing properties can significantly decline as the number of units increases, especially when dealing with multiple turnovers and maintenance tasks.

What are the differences between property management and asset management?

Henry explains that property management focuses on the day-to-day operations, such as finding tenants and ensuring they have a quality living environment. In contrast, asset management involves strategic decisions about the property itself, including upgrades, investments, and when to sell. This distinction is essential for investors to understand as they build their portfolios.

How many rental units can one person manage effectively?

According to Dave, while it is possible for individuals to manage a handful of units effectively, the threshold often varies. He suggests that most can handle 5 to 10 units on their own, but beyond that, particularly for those working full-time, the complexity of managing multiple properties necessitates some form of assistance, whether through hiring help or utilizing property management services.

What are the key skills needed for self-managing rental properties?

A critical skill for self-managing landlords is tenant selection. Both hosts agree that getting the right tenants is fundamental to a smooth rental experience. If landlords can hone their tenant selection process, it makes managing the properties much easier, minimizing issues related to late payments or tenant disputes.

What challenges arise when managing multiple rental properties?

Dave shares his experience of managing several units, highlighting challenges such as longer turnaround times for unit turnovers and the difficulty of managing multiple maintenance requests simultaneously. These challenges can lead to inefficiencies and lost revenue, prompting considerations for hiring a property manager to streamline operations.