When Landlord Self-Managing Might Be a Better Choice Over Hiring a Property Manager

Deciding whether to self-manage a rental property or hire a property manager is a crucial choice for landlords. While property management companies can handle the day-to-day responsibilities of tenant relations, maintenance, and rent collection, there are situations where self-managing might be the better option. Below are key factors to consider when determining if managing your own property is the right move.

1. You Own Only a Few Properties

If you have just one or a handful of rental units, self-management can be more practical. With fewer tenants to oversee, the workload is manageable, and the cost savings from not paying a property manager can significantly increase your profit margin.

2. You Live Near Your Rental Property

Being local allows you to respond quickly to tenant concerns, handle minor repairs yourself, and keep an eye on the property’s condition. This eliminates the need for a middleman and ensures direct communication between you and your tenants.

3. You Have the Time and Skills to Manage It

Successful self-management requires availability and basic knowledge of leasing, fair housing laws, maintenance, and accounting. If you have the time to handle tenant requests, coordinate repairs, and manage financials, self-managing may be a cost-effective option.

4. You Want Full Control Over Your Property

Some landlords prefer to be hands-on with tenant selection, lease terms, and maintenance decisions. Self-management ensures you stay in control of all aspects of your rental business without relying on a third party.

5. Your Property Has Reliable Tenants

If your tenants consistently pay rent on time and require minimal oversight, self-management becomes much easier. A stable, long-term tenant base reduces the need for frequent tenant turnover, screening, and dispute resolution.

6. You Want to Maximize Profits

Property management companies typically charge 8-12% of monthly rent, plus leasing fees. If you’re comfortable handling the work yourself, cutting out this expense allows you to keep more of your rental income.

7. You Enjoy Property Management

Some landlords take pride in managing their properties and building relationships with tenants. If you enjoy the process of maintaining your investment and providing great service, self-management can be a fulfilling experience.

When Hiring a Property Manager Might Be Better

Despite these benefits, self-managing isn’t for everyone. Hiring a property manager may be the better choice if you:

• Own multiple properties or units in different locations.

• Don’t have time to handle tenant issues and maintenance requests.

• Are unfamiliar with landlord-tenant laws and compliance requirements.

• Prefer a hands-off approach and want a professional to handle the details.
  

Our Final Thoughts

Self-managing a rental property can be rewarding and financially beneficial, but it requires time, effort, and knowledge. If you have the right circumstances—such as living nearby, having responsible tenants, and enjoying property management—it may be the best choice. However, if managing your rental starts feeling overwhelming, a property manager could be worth the investment. Ultimately, the best approach depends on your personal situation and long-term investment goals.