When you own rental property, one of the first decisions you’ll need to make is who will handle the day-to-day management. Should you take on the responsibility yourself as a landlord, or should you hire a property management company? This decision impacts everything from tenant screening to property maintenance.

This guide helps you understand the key differences between managing your property as a landlord versus hiring a property manager, and how to decide which option best aligns with your goals, schedule, and investment strategy.

Understanding the Role of a Landlord

Being a landlord means taking the reins and handling the management of your rental property yourself. As a landlord, you’ll wear many hats and be responsible for a wide range of tasks. Your main duties include:

• Tenant Screening & Selection: Choosing reliable tenants who will pay rent on time.
• Lease & Legal Documents: Drafting contracts and staying compliant with rental laws.
• Rent Collection: Ensuring steady cash flow by collecting rent and managing finances.
• Maintenance & Repairs: Fixing issues as they arise to keep tenants happy.
• Dealing with Tenant Issues: Addressing complaints and handling disputes promptly.

Tip: Being proactive with communication and maintenance can help reduce stress and increase tenant happiness.

Being a landlord has its perks, especially if you enjoy being hands-on and making the decisions. You get to make all the calls—setting rent, choosing tenants, and deciding when and how to make improvements.

As a landlord, you might decide to renovate a unit to attract higher-paying tenants and increase your cash flow. You won’t have to pay the 8–12% of monthly rent typically paid to a property management company.

Being a landlord is not for the faint of heart, and managing a property can feel like a second job.

• Screening tenants, collecting rent, and handling maintenance can be overwhelming.
• Compliance with rental laws is essential but can be complex and time-consuming.
• Mediating disputes, dealing with late payments, and handling evictions can be emotionally and financially draining.

Being a landlord gives you control and can save you money in the long run, but it also requires a significant amount of time and energy. If you’re willing to handle the tenants, finances, and legal issues while dealing with the occasional stress, this option might be perfect for you.

On the other hand, if the responsibilities overwhelm you, a property management company might be a better fit.

Understanding the Role of a Property Manager

Hiring a property manager means hiring a professional to handle the day-to-day details of your rental property. Property managers handle the tasks that often overwhelm landlords, offering a wide range of services:

• Advertising & Marketing Vacancies: Ensuring your property is listed to attract high-quality tenants.
• Tenant Screening & Lease Agreements: Letting experts handle the process for you.
• Rent Collection & Financial Reporting: Managing payments and providing detailed reports.
• Repairs & Maintenance: Using their network of contractors to handle repairs quickly and efficiently.
• Legal Compliance: Ensuring your property complies with all rental laws, including evictions.

For most rental property owners, the advantages of hiring a property manager far outweigh the disadvantages. Property managers have industry knowledge and experience, so your property is marketed, maintained, and managed properly.

Property managers often have a network of trusted contractors and vendors at their fingertips, which means faster and less expensive maintenance and repairs. Hiring a property manager isn’t the right solution for everyone, and you’ll want to consider the drawbacks:

• Property managers typically charge 8–12% of the monthly rental income.
• Less Direct Control Over Daily Operations
• Potential for Miscommunication or Misaligned Priorities

If managing your rental property is overwhelming, a property manager can handle the details, bringing professional expertise and giving you more time to focus on other things. On the other hand, if you enjoy being hands-on or want to save money, this option might not be right for you.

Factors To Consider When Choosing

So, should you hire a property manager or go it alone as a landlord? The answer largely depends on your individual situation. Here are some key factors to consider to help you decide what’s best for your rental investment.

A. The Size of Your Portfolio

The more rental units you have, the more complicated property management becomes. Dealing with tenants, collecting rent, and handling maintenance requests can be time-consuming.

You might be able to handle one home with a tenant, but a portfolio of ten properties with multiple tenants each is a different story. You might need a property manager to help keep everything organized and on track.

Tip: If you have multiple properties in different areas, a property manager can help you keep everything organized so you can focus on acquiring more rentals.

B. Your Location Relative to the Property

How close are you to your rental property? If you live out of town or out of state, it’s much harder to handle day-to-day tasks and respond to emergencies.

If your rental property is on the other side of the country, driving five hours to fix a leaky pipe isn’t feasible.

Tip: If you’re too far away, a property manager can ensure everything runs smoothly and you can respond quickly in case of an emergency.

C. Your Time

Time is a precious commodity when it comes to rental properties. As a landlord, you need to stay on top of tenant communications, maintenance issues, and legal compliance. It’s a lot to handle.

If you have a full-time job and family, it’s hard to find the time to screen tenants or coordinate repairs. A property manager can handle the day-to-day tasks so you can focus on your career and loved ones.

Tip: Be honest about your schedule and how you’ll fit property management into your busy life. Can you really dedicate the time it takes without sacrificing important relationships and responsibilities?

D. Your Experience and Comfort Level

As a property manager, you’ll deal with legal, financial, and maintenance issues. If you’re not comfortable with the intricacies of landlord-tenant laws or don’t know how to handle maintenance and repairs, you might want to consider hiring a property manager.

If you’re a first-time investor, you might feel overwhelmed by lease agreements and difficult tenants. A more experienced investor might be comfortable handling those tasks, but may need help with marketing the property or finding tenants.

Tip: If you’re not sure what you’re doing, a property manager can fill knowledge gaps and help you avoid costly mistakes.

E. Your Financial Goals

Property management fees typically range from 8% to 12% of monthly rent. You’ll need to consider the expense and whether it’s worth it to you. If cash flow is your top priority, managing the property yourself might be the better choice.

If you have a $2,000-per-month rental, a 10% property manager would cost you $200 per month. But if your property turns over every nine months, that’s 18 months of additional income a property manager could help you net.

Tip: If a property manager can save you time and stress, is your goal to maximize cash flow, and are you happy with your properties appreciating in value? Then managing your properties yourself might be the way to go.

Scenarios to Consider

As a landlord, you have two main options: manage your rental property yourself or hire a property manager. Here are some scenarios to help you decide.

When Managing Yourself Makes Sense

Managing your rental property yourself is a great option if you have the time and desire to be hands-on.

Scenario 1: You Have a Single Property and Time to Spare

You own a single rental home and have the time to handle day-to-day tasks. You enjoy screening tenants, collecting rent, and handling minor repairs. Managing your property yourself saves you money on management fees, and you prefer being in control.

Example:

Jane owns a duplex nearby and enjoys handling tenant requests and maintenance tasks on the weekends. She saves $2,400 per year in property management fees.

Scenario 2: You Enjoy the People Aspect

If you like getting to know tenants and take pride in maintaining your property, managing yourself might be the way to go. You enjoy being a hands-on landlord and appreciate the personal touch.

Example:

Tom loves showing potential renters around his property and takes pride in mowing the lawn. He appreciates the personal connection managing himself allows.

When a Property Manager is a Better Fit

For some, hiring a property manager is the way to go. You might not have the time, expertise, or desire to handle the day-to-day tasks. A property manager can handle everything from marketing your property to finding and screening tenants.

Scenario 1: You Have a Large Portfolio

You own multiple rental units in different areas. Juggling tenant requests, maintenance, and rent collection for several properties becomes complicated. A property manager can handle everything from one location, saving you time and stress.

Example:

Susan has five properties in two cities. With a full-time job, she doesn’t have the time to handle tenant calls and maintenance requests. She pays $1,200 per month for property management, but the extra money is worth her freedom and peace of mind.

Scenario 2: You Want a Hands-Off Investment

If you consider your rental property an investment, a property manager can keep everything running smoothly without your involvement. You’ll reap the benefits of rental income without the hassle.

Example:

Alex moved out of state and owns a large apartment building in his hometown. He hires a property manager to handle everything, from maintenance to rent collection, so he can focus on his career.

Which Is Right For You?

If you have the time and desire to be a hands-on landlord, managing yourself might be the way to go. You’ll save on management fees and appreciate the control. On the other hand, if you have multiple properties, live far from your rental, or want to maximize your cash flow, a property manager might be the better fit.

Which is right for you? If you enjoy being hands-on and have the time, managing yourself might be the way to go. You’ll appreciate the control and potential cost savings. On the other hand, if you have multiple properties, live far away, or want to maximize your cash flow, a property manager can save you stress and time.

Whichever you choose, the end result is the same: your rental investment needs to be managed properly to appreciate in value and generate consistent income. What’s your next step?