The Pros and Cons of Self-Managing vs. Hiring a Property Manager

Introduction

Owning a rental property is a big step toward building long-term wealth—but the next question often hits just as hard:
Should you manage your property yourself, or hire a professional property manager?

If you’re like many new or growing real estate investors, you’ve probably asked this exact question. On one hand, self-managing your rental gives you complete control and might save you some money. On the other, bringing in a property management company can take a huge weight off your shoulders—especially when it comes to things like late-night maintenance calls, tenant issues, or navigating local landlord-tenant laws.

The truth is, there’s no one-size-fits-all answer. What works for a hands-on investor with one local property may be a disaster for someone juggling a full-time job and multiple rentals in different cities. The right path depends on your time, goals, experience, and risk tolerance.

In this guide, we’ll break down the key pros and cons of self-managing vs. hiring a property manager—so you can make a confident, informed decision that aligns with your investment strategy.

The Pros of Self-Managing Your Rental Property

For many landlords, especially those just starting out, the idea of managing your rental property yourself feels empowering. You’re directly in charge, involved in every decision, and fully connected to your investment. While self-management isn’t for everyone, it does offer some clear benefits—especially for hands-on, local property owners.

✅ 1. Full Control Over Your Investment
When you self-manage, you’re the boss. That means:
- You choose the tenants
- You set and adjust the rent
- You decide how and when repairs are handled
- You determine how you communicate and build relationships

✅ 2. You’ll Save on Property Management Fees
Hiring a property manager typically costs 8–12% of your monthly rental income—and that doesn't include extra charges for leasing, renewals, or maintenance coordination. For a single rental property, this may not seem like much. But over time, those fees can eat into your profits.

✅ 3. Personal Relationships with Tenants
Tenants often appreciate direct communication with their landlord. When you’re the one responding to calls, sending updates, and handling concerns, you’re building trust and transparency—leading to better tenant satisfaction and reduced turnover.

✅ 4. Hands-On Learning and Experience
There’s no substitute for on-the-ground experience when it comes to property management. From screening tenants to handling lease violations, you’ll gain insights that can help you scale your rental portfolio with confidence.

For more on the responsibilities and expectations of DIY landlords, check out this helpful resource from BiggerPockets.

🧠 Quick Take: Self-management may be a great fit if you:
- Live near your rental property
- Have flexible time or work from home
- Are comfortable with basic maintenance or coordinating contractors
- Enjoy learning and staying organized
- Want to maximize profits on a small portfolio

Just remember—with great control comes great responsibility.

The Cons of Self-Managing Your Rental Property

While the idea of managing your own rental property sounds empowering, it’s not without its challenges. Many DIY landlords quickly realize that self-managing a rental comes with hidden time costs, legal complexity, and emotional stress that can overwhelm even the most well-intentioned investor.

❌ 1. It’s a Serious Time Commitment
Even one rental property can take up more time than expected. When you self-manage, you’re on the hook for:
- Coordinating showings and tenant screenings
- Handling maintenance calls—sometimes at 2 AM
- Managing rent collection and late fees
- Scheduling repairs and overseeing vendors

❌ 2. Legal Risks Can Sneak Up on You
Landlord-tenant law is complicated, varies by state and city, and is always evolving. Even small mistakes—like mishandling a security deposit or improperly issuing an eviction notice—can lead to fines or lawsuits.

For a deeper dive, check out the NOLO guide.

❌ 3. Emotional Involvement Can Cloud Your Judgment
When you're the one dealing directly with tenants, it’s easy to let emotions creep into business decisions—hurting your profitability and consistency.

❌ 4. Marketing and Pricing Mistakes Can Cost You
Professional property managers use tools and data to optimize pricing, minimize vacancies, and attract reliable tenants. DIY landlords often rely on gut feelings or outdated listings—leading to lost money.

⚠️ Quick Take: Self-management becomes risky when:
- You're managing from out-of-state
- You don’t have reliable local contractors
- You’re unfamiliar with landlord laws
- You struggle to separate emotions from business
- You're juggling multiple properties or other major responsibilities

It’s not just about saving money—it’s about protecting your investment.

The Pros of Hiring a Property Manager

If self-managing your rental property feels like a lot—it’s because it is. That’s why many real estate investors choose to hire a property manager to take over the day-to-day operations.

✅ 1. Expert Knowledge of Landlord-Tenant Law
Professionals stay updated on local, state, and federal regulations—so you don’t have to.

✅ 2. True Passive Income
No more chasing rent, coordinating vendors, or dealing with complaints.

✅ 3. Better Tenant Screening
Good tenants are the foundation of a profitable rental. Property managers use advanced screening tools to ensure tenants are reliable.

✅ 4. Higher Occupancy and Market-Driven Rent
They know how to price your rental properly and get it filled quickly.

✅ 5. Built-In Maintenance Network
Property managers have pre-vetted maintenance vendors on call for every type of repair.

For more on professional management benefits, visit the National Association of Residential Property Managers: https://www.narpm.org/

🧠 Quick Take: Hiring a property manager is ideal if:
- You live far from your rental
- You own multiple properties
- You value time over money
- You’re not confident handling legal, maintenance, or tenant issues
- You want to grow your real estate business passively

The Cons of Hiring a Property Manager

While there are many benefits to hiring a property manager, it’s not the perfect choice for everyone.

❌ 1. Management Fees Can Cut into Your Profits
Property managers typically charge 8–12% of the monthly rent as a management fee, plus possible leasing and renewal fees.

❌ 2. Less Direct Control Over Your Property
You’re handing over some control—decisions about tenant issues, repairs, and marketing.

❌ 3. Not All Property Managers Are Equal
Some property management companies:
- Overcharge for maintenance
- Fail to communicate
- Neglect property care

For tips on choosing the right property manager, check out this Forbes article.

❌ 4. Communication Delays and Misunderstandings
A middleman can sometimes slow things down or create confusion.

⚠️ Quick Take: Hiring a property manager might not be ideal if:
- You’re very detail-oriented and want direct oversight
- You only own one or two properties and need to maximize every dollar
- You prefer close tenant relationships

It’s not just about finding any manager—it’s about finding the right manager for your needs.

How to Decide Which Path Is Right for You

Now that you’ve seen the pros and cons of self-managing versus hiring a property manager, you might be wondering: Which path makes the most sense for me?

🧩 Key Factors to Consider:
1️⃣ Number of Properties and Location
2️⃣ Time and Lifestyle
3️⃣ Experience and Comfort Level
4️⃣ Long-Term Goals

📝 Decision-Making Matrix (Optional Mini-Guide)

🌟 The Bottom Line:
The key is to choose the approach that aligns with your lifestyle, financial goals, and risk tolerance—and be willing to adapt as your investment journey grows.

Conclusion

Deciding whether to self-manage your rental property or hire a property manager is one of the biggest choices you’ll make as a landlord. Both paths come with unique pros and cons—and the right fit depends on your goals, time, and experience.

If you’re drawn to full control and saving on fees, self-management might be your best starting point. But if you’re craving more free time and professional oversight, a trusted property manager can be a game-changer.

Ultimately, it’s about making the choice that aligns with your lifestyle and long-term investment strategy.

👉 Looking to take the next step? Our team at NBHD Property Management is here to help. Contact us today for a free consultation and let’s chat about your unique needs.