Deciding whether to manage your rental property on your own or hire a professional comes with important trade-offs. Each approach offers distinct advantages and challenges. The decision you make can shape your long-term success as a property owner. This guide breaks down what to expect from both options so you can make an informed choice.
1. Expect a heavy workload on your own
Managing rental property is demanding, even if you own just one unit. While it may seem manageable at first, the daily tasks can quickly become overwhelming. Hiring a property manager can ease that pressure, giving you confidence that your tenants and property are in capable hands.
Self-management works well for landlords who enjoy being hands-on and have the time to stay involved. If you’re juggling a family, a separate business, or full-time work, bringing in a professional may be the more practical route.
2. For quality tenants, hire a property manager
Finding the right tenants requires more than credit scores and references. A person might look great on paper but present issues you might not recognize. There’s also the risk of unintentionally violating fair housing laws during the screening process.
Property managers are experts when it comes to finding high-quality tenants while complying with all federal, state, and local housing laws. For example, Green Residential, a Houston property management company, helps investors find quality tenants and increases retention rates by developing positive tenant relationships. Although you can try to find good tenants based on credit checks and references, working with a property manager makes it easier to get and keep the kind of tenants you want.
3. Consider your available time
Managing a rental means staying available – often on short notice. You’ll need to coordinate repairs, answer emergency calls, collect rent, schedule inspections, manage deposits, and communicate with tenants regularly. When a unit becomes vacant, the list grows: cleaning, advertising, showings, application processing, and background checks all fall to you.
Hiring a property manager shifts those responsibilities off your plate. For a monthly fee, they take over daily operations, freeing up your time for personal or professional priorities.
4. Consider how close you are to your property
Living near your rental property can make management significantly easier. Quick access allows you to respond to emergencies, meet contractors, and check in as needed. If you’re located far away, even simple tasks can become logistically challenging.
A local property manager eliminates that concern. You can live out of town – or out of state – and still maintain a well-managed property. A good manager handles tenant needs promptly, including after-hours emergencies.
5. Consider your budget
Professional management comes with a cost. Fees vary depending on location, the number of units, and the level of service. Some companies charge extra for services that should be standard, while others offer transparent, flat-rate packages that cover everything from maintenance coordination to tenant screening.
If hiring a property manager isn’t feasible right now, self-managing is a viable option – especially if you’re willing to invest your time and energy. You can also outsource smaller tasks to a friend or part-time helper until the property generates enough income to justify a full-service manager. As your portfolio grows, the time and complexity involved may eventually make professional support a necessity.
6. Think about the legalities
Landlord-tenant laws are detailed, and they change frequently. Something as simple as a rent increase can become a legal issue if you’re unaware of local rent control rules. Staying current is essential to avoid fines or legal disputes.
Property managers stay informed on legal updates and often have access to legal counsel. Their knowledge helps ensure compliance with housing laws and reduces your exposure to costly mistakes.
Your management strategy should match your goals
Whether you choose to manage your property yourself or hire a professional, the right decision depends on your time, resources, and long-term goals. If you plan to expand your rental portfolio, hiring a property manager may provide the support needed to scale effectively. By weighing the factors outlined above, you can choose a path that aligns with your strategy and keeps your investment performing at its best.
My management strategy is to get the rent every month! xD