Almost six years ago, my wife and I realized that our family was outgrowing our home. My neighbor, a real estate agent, told us she'd found the perfect house for us. We toured it and agreed.

But there were two problems: First, our house wasn't on the market; second, the real estate market crash of 2008 had just happened. It was a great time to buy a house but not to sell one. I contacted a mortgage company that pre-qualified us to buy the new house without having to sell our current one. So my wife and I decided to rent our house.

To Hire Or Not to Hire a Property Manager: That Is the Question

The first decision I had to make was whether to hire a property manager or manage the property myself. That was a no-brainer for me. To manage your rental property you have to know how to fix things, and I am not handy at all. I flooded my kitchen and living room the one time I tried to fix my dishwasher. Other than a tool box of hand-me-down tools from my dad, I didn't own anything needed for big repair jobs.

Time was also a factor. I was active in the community, and my kids were involved with sports and other activities. A huge calendar on the side of our refrigerator was covered with our family's meetings, sporting events and activities. Our motto became, "If it's not on the calendar, it's not happening." One look at that calendar told me that I didn't have time to manage my own property. Lacking time, talent and tools, I knew that I had to hire a property manager.

Finding the Right Property Manager for the Job
It was important to me to find the right property manager. My house wasn't just an investment property; this was the home my family and I lived in for six years. I didn't want to see it destroyed by renters who didn't care about it. My wife and I interviewed several property managers. Most worked for large real estate companies with property management divisions. None of them gave us the feeling that our house wouldn't be just one more in their large inventory of properties for rent.

We finally met the right person about the time we were going to give up on the idea of renting. I'll call him Mr. L. Although Mr. L had a large portfolio of rental properties, he was much more hands-on than the other property managers. He assured us that he would personally inspect the house twice a year. One would be an announced visit when he changed the air filter, and the other would be a surprise drop-in visit.

Mr. L offered me a choice of management plans. The more involved he was, the more commission I had to pay on the monthly rent earned. He asked questions to help me figure out which plan was best. Did I want to find my own renters? No, I didn't have the resources or know-how to advertise. Did I want to find my own repairmen and contractors when something needed to be fixed? No, I didn't know reasonably priced plumbers, electricians, and handymen like he did.

So I opted for the "Hardly Know You Own It" plan. For not having to do anything but enjoy the rent money, I gladly paid Mr. L 10 percent of the rent collected.

Dealing with Renters

Outside of approving repairs and improvements that cost over $100, I had little interaction with my renters. However, I learned that renters are more demanding about certain things than I am. Water in the garage during heavy rains - not a problem because I didn't use it. But the renters did, so time for a new sump pump. Back door lock didn't work - not a problem because the dead bolt worked. But the renters wanted both locks to work, so time for a new lock and door because the door cracked during the replacement. I learned that I had to build up a reserve fund to take care of repairs and other improvements that renters would want.

Renting my house has been profitable. In almost six years, there's only been one month when renters didn't occupy the house. Here's what I learned:

• Unless you have the time, tools, and talent, hire a property manager.
• Don't pick just any property manager. Find one who will protect your investment.
• Be prepared to pay up to 10 percent in commission to have your rental property marketed and cared for.
• Set aside money for needed repairs.

If you do all of that, I believe you'll have a positive and profitable experience like I had.