Self-management is when the owner handles property operations directly — no third-party property management company. Common among smaller LA multifamily owners; uneconomic at scale.
Self-managed owners handle tenant relations, rent collection, maintenance coordination, compliance, and reporting themselves. Eliminates management fees but substitutes the owner's time. Self-management often becomes unsustainable as portfolio grows beyond 3-5 small buildings.
For LA multifamily sellers who have been self-managing, buyer underwriting typically "backs in" a market management fee (4-6% of EGI). This adjustment reduces underwritten NOI and therefore buyer offer price. Understand this gap before listing — it affects pricing expectations.
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