Some states have a number where an onsite manager is required. Otherwise I don't believe there is a difinite number. There are a lot of factors that would dictate when a manager makes sense. I have older clients that have managers because they can"t or don't want to do it. By the same token they have owned the units for a long time and have lots of equity and can afford a manager. If someone new came along and leveraged the purchase the units would make less sense paying a manager. Obviously the greater the number of units the more likely a manager is needed. Some (but not all) other factors might be age of the units, distance from the owner, turnover, vacancy factors, crime (are they in the "hood" where the manager needs to be tougher than the residents?), etc. In looking to buy, factor in a manager if you think a particular investment will require one. It it needs one but can't afford one it probably doesn't make sense? Buy it at a price that will make sense or look for something else.
Paul Sylvester, CCIM
Jun 10, 2009