If you’re a landlord, you get to decide whether to self-manage your rental property or hire a property manager. You already have enough on your plate, especially if you manage multiple properties. While hiring a property manager can help free up your time and give you peace of mind, it will also cost you some money.
Pros and Cons of Self-Management
The idea of managing your own rental property may be appealing, especially if you’ve seen how much property managers charge each month and how little they might do. You can save a lot of money by doing it yourself, but there are factors to consider before deciding that managing your own rental is right for you.
Pro: Save Money
The number one reason most people choose a self-manage rental is that they want to save money. Whether you’re a new landlord or have been renting for years, saving money is always a good thing.
If you have multiple investment properties, the savings from management fees could mean the difference between making a profit or breaking even each month.
Pro: Do Things Your Way
You can do things your way with a self-manage rental. When you hire another person or company to manage your rental property, rules, procedures, and policies are up to their discretion.
If you decide to manage the rental yourself, you get to call the shots. You can handle things however you want, which allows for more flexibility in how your property runs.
Con: It’s Time-Consuming
Running a self-manage rental means you have to spend significant time finding and screening tenants, collecting rent, handling maintenance calls, and responding to after-hours emergencies.
Property managers have tools and systems in place to handle these tasks efficiently. This is something to consider for property owners who work full time, live far from their rental properties, or have multiple units to manage.
Con: It’s Inconvenient
If you don’t live near your property, managing it yourself can become a major hassle. Think about it. If you have multiple properties, do you really want to drive around town all day checking on each one? Who’s going to collect rent and deal with late payments? What about repair requests and other maintenance work?
Additionally, managing a property yourself may limit your personal time, making travel or leisure activities more difficult.
Pros and Cons of Hiring a Property Manager
A property manager can take care of all the nitty-gritty details of landlording for you—for a fee, of course. How do you know if paying that fee is worth it, or if you should consider running a self-manage rental?
Pro: Time Saver
When you add up all the time you spend dealing with tenants, collecting rent, and performing routine maintenance on your rental property, you might find that hiring a property manager makes sense.
There are many ways in which hiring a property manager could save you time:
- Handle rent collection and late-rent notices
- Advertise vacant units
- Show units to prospective tenants
- Handle move-in and move-out inspections
- Perform routine maintenance and repairs
By hiring a property manager, you can use your time to manage projects outside the scope of your rentals.
Pro: Professional Mediator
One of the biggest advantages to hiring a property manager is the buffer they offer between you and your tenants. They handle all communication related to rent payments, maintenance requests, complaints, and other issues that might arise.
If you’re a landlord, you have to consider how much your time is worth. Is it worth more than what a property manager charges? If you determine that property manager fees won’t fit into your budget, self-management may be your best bet.
Con: Less Direct Control over Your Property
While a property manager can use their experience to attract the best tenants to your property, work to mediate conflicts, and arrange repair services, it means you will have less control over the direct operations of your rental.
You need to choose a property manager you trust, if you choose to hire one. You want their decisions to align with your expectations.
Leveraging Property Management Software for a Self-Manage Rental
If you’re considering self-managing your rental property, you might want to think about using property management software. Industry-specific property management software like PayRent is designed specifically for the needs of landlords and property managers.