Key Takeaways
- Self-managing a rental offers more control and saves on management fees, but it requires significant time, constant availability, and a strong understanding of legal, financial, and operational responsibilities.
Hiring a property manager shifts day-to-day tasks like tenant screening, maintenance coordination, rent collection, and financial reporting to experienced professionals, making rental ownership far more hands-off.
While property management comes with a cost, working with a trusted company like Foothills Properties can help reduce stress, avoid costly mistakes, and improve long-term rental performance.
Investing in real estate can be a surefire way to grow your wealth and achieve financial freedom. Properties appreciate over time, meaning that your money and equity will grow simply by holding onto the property. Additionally, renting it out will allow you to earn a steady source of passive income.
Real estate is more stable than other investment markets, like stocks or bonds. However, it’s a less passive type of investment. Unlike stocks, it requires active management. Landlords need to be available around-the-clock for property showings, inquiries, maintenance requests, as well as administrative tasks like tenant screening and financial reporting.
This can be as time-consuming and exhausting as a full-time job, which is why so many landlords choose to hire a property manager instead.
If you’re wondering whether you should partner with a property manager or become a DIY-landlord, you’re in the right place! In this guide, the experts at Foothills Properties will go over the difference between self-managing and working with a property manager, so you can decide which works best for you.
What Does Self-Managing Entail?
If you want to self-manage a rental property, you need to understand exactly what you’re committing to. Being solely responsible for managing a rental unit means you’ll have to do all these tasks:
1. Marketing the Property
You’ll have to write a listing, take quality photos of the property, and advertise it across multiple channels. Additionally, you’ll need to be available 24/7 to answer any inquiries that come through or to conduct showings.
2. Leasing the Property
After marketing your rental, you’ll need to review applications and screen tenants to find the best suitable candidates. You’ll also have to inspect and clean the rental and write a strong lease agreement before their arrival.
3. Coordinating Maintenance and Repairs
Your rental needs to be in good condition before, during, and after each tenancy. You don’t have to do the maintenance and repairs yourself, but even coordinating with a contractor takes time and effort.
4. Collecting Rent
Unfortunately, not all tenants are reliable. More often than not, they require reminders to make timely payments. This means that you’ll spend plenty of time sending email or text reminders every month and, in worst-case scenarios, you’ll have to call or pay tenants a visit to collect late payments or charge late fees.
5. Ensuring Legal Compliance
You need to ensure that your property complies with all the applicable safety, health, and building codes. Additionally, you, as a landlord, have to comply with a series of complicated rental laws.
6. Financial Planning
Landlords need to keep track of all their income and expenses. After all, you’ll need all of this information when tax season rolls around. On the other hand, keeping detailed financial reports is crucial for evaluating the performance of your rental, so this is not a task that you can simply skip.
The Benefits and Drawbacks of Self-Managing
The biggest benefits of self-managing are increased control over your investment and money savings. When you’re the only person calling the shots, you have more control over how your property looks, who lives in it, and how your rental business evolves.
Plus, you don’t have to pay any management fees. However, there are also some drawbacks to self-managing, including the following:
1. Around-the-Clock Availability
When you self-manage your rental, you get no breaks. You have to be on call 24/7, as you never know when problems may arise. This might mean answering emergency calls in the middle of the night, resolving payment issues while sick, or having to disrupt your vacation to call a handyman.
2. Lack of Industry Insights
Unless you’ve worked in real estate before, you’ll be at a disadvantage. Most landlords partner with seasoned property managers who understand the local market and know how to fill vacancies quickly. If you’re completely new to the world of real estate, you’ll have a hard time finding your footing and filling your vacancies.
3. Financial Losses
More often than not, landlords who choose to self-manage do it to avoid paying management fees. Little do they know that self-managing can lead to major financial losses.
You could lose small amounts of money every month by investing in unnecessary tools and software. Moreover, you could end with a negative bottom line if you fail to set a competitive price for your rental or budget for its operational expenses.
The Benefits of Hiring a Property Management Company
Self-managing can be complicated and time-consuming, especially if you’re renting out a property for the first time. That’s why so many owners choose to hire a property manager.
These professionals can help you with everything from listing your rental and screening tenants to coordinating maintenance and creating detailed monthly financial reports. Moreover, property managers often have in-house maintenance teams or get bulk discounts from contractors, meaning that they can get the work done at a cheaper rate.
They can also offer valuable insights to help you maximize your rental income and profits.
Although property management comes at a price, the time and money savings are more than worth it. The key lies in finding a reliable and experienced company, like Foothills Properties.
Bottom Line
If you want to rent out a property, there are two ways to do it: you either manage everything yourself or you hire a property manager. Both approaches have their pros and cons.
Self-managing is ideal for independent individuals with plenty of time on their hands, a willingness to learn, and the ability to work well under pressure. On the other hand, hiring a property manager is best for first-time landlords or investors who are looking for a more passive or hands-off approach.
Ultimately, to decide whether you should self-manage or partner with a property manager, you need to determine how much time you’re willing to invest, how much work you’re willing to do, and how much stress you can handle. If you want to enjoy all the benefits of owning a rental property without the hassle, contact Foothills Properties today!
