Deciding whether to hire a property manager or self-manage your rental property can significantly impact your income, workload, and overall state of mind.
This guide helps you weigh the pros and cons and make the right choice for your rental business.
What Does a Property Manager Do?
A property manager handles the daily tasks of managing your rental property. They act as your stand-in with tenants and handle:
- Marketing your rental and showing it to tenants
- Screening tenant applications, doing credit and background checks
- Preparing lease agreements
- Collecting rent and enforcing late fees
- Coordinating maintenance and repairs
- Managing tenant disputes and evictions, if needed
Pros of Hiring a Property Manager
1. Saves You Time and Reduces Dirt Work
Handling tenant calls, maintenance, rent collection, and legal paperwork can eat into your life. A property manager frees up that time, especially if you own multiple properties or live far away.
2. Better Tenant Quality and Lower Turnover
Property managers often use proven screening methods to weed out risky tenants. They also know local rental trends, helping set competitive rents and keeping occupancy high.
3. Legal and Maintenance Expertise
They know local housing laws, fair housing rules, and eviction procedures. Plus, they have vendor networks and contractors on call for timely repairs and lower costs.
4. Peace of Mind
If anything goes wrong, you know a pro is handling it. That mindset alone is a big relief for many investors.
Cons of Hiring a Property Manager
1. Cuts into Your Profits
Most managers charge 8%–12% of monthly rent, and some add leasing, setup, or vacancy fees. That can significantly reduce profits, especially if rent is low or margins are tight.
2. Less Control Over Your Property
You're handing off tenant selection, repair decisions, and rent enforcement. If they underperform, you might not know until later, or suffer from tenant complaints.
3. Risk of Poor Quality Management
Not all property managers are equal. If you hire one with no track record or poor reviews, your tenants may end up unhappy, and your property could take damage.
4. Communication Issues
Moving through a middleman can slow down the process. If they don't give timely updates or drop the ball, your investment could suffer.
When It Makes Sense to Hire a Property Manager
Consider a property manager if:
- You live far from your rentals
- You own more than one unit or multiple properties
- You don't have time or interest in managing repairs or tenant calls
- You're new to landlord duties or want help with legal compliance
How to Choose the Right Manager
Step 1: Clarify Your Needs
Decide what tasks they must handle: rent collection, tenant screening, maintenance scheduling, or all of the above. That helps match you with the right service level and cost.
Step 2: Research and Get Referrals
Check online reviews and ask fellow investors for recommendations. Look for managers with experience managing properties similar to yours and in your local area.
Step 3: Compare Pricing and Services
Some managers charge a flat fee, while others charge 8%–12% of the rent. Ask if there are leasing fees, vacancy charges, or maintenance markup. Get everything in writing.
Step 4: Interview Candidates
Ask about:
- Their tenant screening steps
- How rent is collected and enforced
- Emergency repair handling
- Local rental laws and certifications
- How they communicate with you and tenants
Step 5: Talk To Their Tenants
Whenever possible, contact tenants who live or lived in properties they manage to get real feedback on responsiveness and service quality.
Summary of Considerations
|
Factor
|
Hire a Property Manager
|
Self-Manage Yourself
|
|
Time Commitment
|
Low – they handle tasks
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High – you're responsible for everything
|
|
Control Over Operations
|
Medium – you delegate decisions
|
High – you make all decisions
|
|
Cost Impact
|
Management fees cut into profits
|
No fees, but you invest your time
|
|
Tenant Screening & Legal Expertise
|
Professional screening and compliance
|
Riskier if you're inexperienced
|
|
Help with Local Laws & Vendors
|
Experienced network of trusted vendors
|
Must build your own network and knowledge
|
Next Steps
If your goal is to hire a property manager, start by:
- Listing what services you need.
- Asking for referrals and checking online reviews.
- Interviewing multiple managers with a clear questionnaire.
- Review the fee and contract terms carefully.
- Speaking to actual tenants for feedback.
If you choose to self-manage rentals instead, consider using tools like screening software, lease templates, and a list of trusted contractors. A handful of reliable resources can help you manage more like a pro.
Frequently Asked Questions
Q1: How much do property managers charge?
They usually charge 8%–12% of monthly rent, sometimes more if they include leasing or setup fees.
Q2: Can I give a property manager only part of the job?
Yes. Some owners handle screening or rent collection themselves and let the manager do maintenance or legal tasks.
Q3: How do I spot a bad manager before hiring?
Check for negative reviews, lack of tenant communication, missing licenses or certifications, and reluctance to provide references.
Q4: Is hiring a property manager worth it if I only have one rental?
Only if you live far away, have limited time, or feel unprepared for landlord duties. Otherwise, self-managing may save money.
Overall, hiring a property manager makes sense if your time or location makes managing rentals tough or if you want professional backup. Self-managing rental works if you prefer maximum control, can invest your time, and own few rentals.
Choose the path that fits your schedule, growth plans, and stress comfort.
