Self-Managing vs. Hiring a Property Manager: What It’s Really Costing You

Choosing to manage your own rental properties might save you some money now, but it comes at a price down the road. Professional property management isn’t just about convenience. It’s about protecting yourself legally and maximizing your profits.

Professional property managers come with extensive knowledge of landlord-tenant laws and tenant management skills that take time to develop. If you own rental property and you’re on the fence about hiring a property manager, here’s a look at the true cost of trying to do everything yourself.

1. Your time and energy

Preserving your time and energy is worth far more than what you’ll ever pay in property management fees. Landlords who manage their own properties start out thinking they’re saving money – until the 3am maintenance calls, tenant drama, no-show showings, and random repairs start piling up.

On average, landlords spend 200 hours every year on property-related duties, with maintenance and tenant communications being the biggest source of frustration. It doesn’t take long to realize they don’t actually want to be landlords.

That’s when they hire a property manager. For instance, Green Residential, a full-service apartment property management company in Houston, helps landlords reclaim their time by handling everything from marketing vacancies and screening tenants to managing maintenance requests and complaints. 

Having a property management team that works around the clock will give you back your time, energy, and peace of mind.

2. Your property value

When you try to handle everything on your own, you risk a premature drop in property value. Missed inspections, delayed repairs, and inconsistent upkeep can chip away at your property’s value and you may not know until it’s too late.

Small issues like water damage, HVAC neglect, or insects often go unnoticed until they become major expenses that cost more to fix in the end. Sometimes, the damage can significantly devalue the property.

A property manager will protect the value of your investment through proactive maintenance, routine inspections, and improvements. If you decide to sell your property, it will be in great condition after being cared for by a professional property manager.

3. Legal headaches

Landlord-tenant laws are often confusing, and unfortunately, there are harsh consequences for mistakes. One wrong move, like issuing a notice incorrectly or mishandling a security deposit, can lead to getting sued. These mistakes are common among landlords who don’t hire property managers. Unless you have endless time to learn the law and stay up-to-date with changing housing laws, it’s an uphill battle.

Professional property management companies know the law and have a lawyer on their team who keeps them updated with new changes to landlord-tenant law. When you work with a property manager, they’ll stay compliant with federal and state fair housing laws, and manage your properties without exposing you to legal risk. Everything from evictions and notices will be handled according to the law.

4. Higher maintenance costs

Trying to manage your own repairs can be a nightmare and often leads to overpaying for subpar work. If you don’t have a go-to team of affordable, reliable contractors on standby, emergency repairs will be chaotic when you have to schedule with whoever picks up the phone first. And if you do your own repairs, you could create bigger, costly problems for yourself.

In contrast, property managers have strong relationships with licensed professionals who offer better rates, faster service, and higher-quality work. You don’t have to worry about negotiating prices and dealing with a new company every time you need something fixed.

5. Longer vacancies

Keeping tenants long-term reduces your costs, but tenant retention strategies aren’t intuitive. Thankfully, property managers know exactly how its done. For example, they use marketing strategies to promote empty units and attract the right tenants, reducing vacancies to days, not months. They also proactively offer lease renewals with incentives before tenants start looking for a new place to live. A good property manager can help you hold on to your tenants for a longer period of time, which translates to higher profits and fewer vacancies.

6. Tenant relations

Maintaining good relationships with your tenants is essential for building trust and keeping the peace, but it’s easy to unintentionally escalate a situation. A simple repair request or noise complaint can spiral into tension and even legal action if it’s not handled right.

Professional property managers don’t let frustration win, no matter how difficult a situation may get. They know how to handle conflict and communicate calmly and legally.

Reclaim your life with a property manager

If you’re tired of wearing all the hats, you need a property manager. You’ll gain back your freedom, reduce your legal risks, and protect the long-term value of your investment.