Self-Managing vs. Hiring a Property Manager: How to Decide
September 2, 2024This decision usually comes down to three things: how much time you have, how far you live from your properties, and how many units you're managing. There's no universally right answer, but the trade-offs are consistent enough to reason through.
The case for self-managing
Self-managing tends to make sense when:
- • You live near your properties and can respond to tenant issues yourself
- • Your portfolio is small enough that the time commitment stays manageable (often cited as roughly 1-4 units for a landlord with a full-time job)
- • You want direct control over tenant selection, pricing, and vendor choice
- • You'd rather pay for software than a percentage of every month's rent
The case for hiring a property manager
Hiring out tends to make sense when:
- • You live far from the property (out-of-state or absentee ownership)
- • Your portfolio has grown large enough that self-managing eats into a job or other properties
- • You want a buffer between yourself and tenants for difficult conversations, late rent, or evictions
- • Local landlord-tenant law is complex enough that you want a specialist handling compliance
The middle ground: software instead of a manager
A lot of what a property manager actually does day-to-day — generating a compliant lease, collecting rent, tracking maintenance requests, screening applicants — is exactly what property management software automates. For landlords who want more control and lower cost than a management company, but don't want to run everything from spreadsheets and email, software fills that middle ground without the 8-12% monthly cut a manager typically takes.
Frequently Asked Questions
How many rental units can one person self-manage?
It depends heavily on proximity, tenant quality, and how automated your rent collection and maintenance tracking are — but landlords with day jobs commonly self-manage anywhere from a couple units up to a dozen or more once the paperwork and payments are automated.
Can I switch from a property manager to self-managing later?
Yes, though check your management agreement's termination notice period first (often 30-90 days). You'll also need to collect tenant contact info, lease copies, and security deposit records from the outgoing manager.
Does self-managing mean I have to handle maintenance myself?
No — self-managing means you coordinate maintenance rather than a management company doing it for you. You can still hire the same contractors a property manager would use; you're just the one calling them and approving the invoice.