MANAGEMENT

Should You Self-Manage or Hire a Property Manager?

Updated March 2026

What a PM Actually Costs

Most PM companies charge 8-10% of collected rent plus a leasing fee of 50-100% of first month's rent. On a \$1,200/month rental: \$96-120/month in management plus \$600-1,200 at every turnover. For a property turning every 2 years, you're at \$1,700-2,640/year. On a property generating \$3,000/year in cash flow, the PM eats more than half.

Your Time Isn't Free Either

Self-managing means midnight maintenance calls, coordinating contractors, showing units, running background checks, chasing late rent, filing evictions, keeping tax records. At 1-3 properties it's 5-10 hours/month. At 5+ properties or long-distance, it's a part-time job. If your day job pays \$40/hour and you spend 10 hours/month landlording, you're paying yourself \$170/month to save \$120 in PM fees. That math doesn't work.

The Breakeven

Self-managing works until 3-5 local properties or any number of out-of-state units. If your rental is 20 minutes away and you're handy, self-manage. If it's 3 hours away, hire a PM from day one. The cost of driving out for every issue exceeds PM fees within months.

Finding a Good PM

A good PM handles screening, maintenance at contractor rates you can't get, property inspections, evictions, and monthly financial statements. The best ones more than pay for themselves through faster leasing and better retention. The bad ones are a total waste. Interview at least three, ask for references, and check reviews.