If you own rental properties, one of the biggest decisions you’ll face is whether to manage them yourself or hire a professional property manager. For some investors, a property manager is worth every penny, saving time and headaches. For others, the fees and loss of control outweigh the convenience. The right choice depends on your investment goals, personality, and portfolio size.
Let’s break down the major pros and cons of working with a property manager so you can make an informed decision.
The Pros of Hiring a Property Manager
1. Time Savings and Convenience
Managing a property means dealing with tenant screening, lease agreements, rent collection, maintenance calls, and sometimes—evictions. If you own multiple properties, have a full-time job, or live far from your rentals, these tasks can be overwhelming. A property manager handles the day-to-day work, freeing up your time to focus on growing your portfolio or enjoying personal life.
2. Professional Tenant Screening
A good property manager has systems to thoroughly vet potential tenants, including credit checks, employment verification, rental history, and background checks. This reduces the likelihood of problematic renters who might cause late payments, property damage, or legal issues.
3. Consistent Rent Collection
Property managers ensure rent is collected on time through established payment systems and enforce lease terms when payments are late. This consistency can improve your cash flow and minimize awkward conversations with tenants.
4. Legal Knowledge and Compliance
Landlord-tenant laws can be complex and vary from state to state. A property manager stays informed about local regulations, ensuring leases, notices, and eviction processes are compliant. This reduces your risk of costly legal mistakes.
5. Maintenance and Vendor Relationships
Property managers typically have a network of trusted contractors and maintenance providers who can address repairs quickly and at competitive rates. Tenants also appreciate faster response times, which can improve satisfaction and retention.
6. Lower Vacancy Rates
Experienced property managers know how to market properties effectively, set competitive rent prices, and keep units filled. Shorter vacancy periods mean more consistent income.
The Cons of Hiring a Property Manager
1. Management Fees
The most obvious drawback is cost. Property managers typically charge 8% to 12% of monthly rent plus additional leasing fees, maintenance markups, or renewal fees. Over time, these expenses can significantly reduce your profit margins—especially if you own only one or two units.
2. Less Direct Control
When someone else manages your property, you won’t be as involved in every decision. Some owners find it frustrating not to have final say on repairs, tenant approvals, or rent increases (depending on the contract). While you can set guidelines, you’ll have to trust your manager’s judgment.
3. Risk of Poor Management
Not all property managers are equal. A bad one can mishandle tenant relations, overlook maintenance issues, or fail to enforce lease terms—leading to lost income and damage to your property’s reputation. This is why careful vetting is critical.
4. Possible Communication Gaps
Even good managers may not communicate as frequently as you’d like. Some owners want updates on every repair request; others prefer a hands-off approach. Misaligned expectations can lead to frustration.
5. Additional Charges
Beyond the base fee, some managers tack on extra costs for things like property inspections, marketing, and administrative tasks. Without reading the management contract carefully, you might be surprised by the true cost of services.
How to Decide if a Property Manager is Right for You
Here are a few questions to ask yourself:
- Do you have the time and interest to self-manage? If you enjoy hands-on work and have the availability, self-management can save money.
- Is your property near your residence? Long-distance landlords often benefit from having a local representative.
- How many units do you own? A larger portfolio can justify professional management since the time demands are greater.
- Are you comfortable with landlord-tenant laws? If you’re unsure about compliance, a manager can help you avoid legal pitfalls.
- What’s your tolerance for tenant issues? If late-night maintenance calls or difficult conversations stress you out, hiring help may be worth it.
Final Thoughts
A property manager can be a valuable partner, especially for investors who want a more passive role or have multiple units. They can help keep your properties occupied, your tenants satisfied, and your legal bases covered. However, the cost and potential loss of control aren’t for everyone.
If you decide to hire one, do your homework:
- Interview multiple candidates.
- Check references and online reviews.
- Ask detailed questions about fees, communication, and responsibilities.
The best property managers don’t just take tasks off your plate—they protect your investment and help it grow. Choosing wisely can mean the difference between a stress-free rental experience and ongoing frustration.
Looking to sell your home today? Contact WI Home Buyers at 920-360-1252!