Self-managing vs. hiring a property manager.
Management is either a cost you pay in money or a cost you pay in time. Put a realistic number on both before you decide.
What a property manager does
A full-service manager markets the unit, screens applicants, signs leases, collects rent, coordinates maintenance, handles tenant calls, performs inspections and manages move-outs and, when necessary, evictions. The value is highest when you live far away, own several units or simply do not want a second job.
What it typically costs
Industry fee guides commonly cite these ranges for long-term residential rentals:
| Fee | Typical range |
|---|---|
| Monthly management | 8–12% of monthly rent |
| Leasing or tenant placement | 50–100% of one month's rent |
| Lease renewal | $100–$300 |
| Maintenance markup | 5–15% of repair costs |
| Setup or onboarding | $300–$500 |
Read the contract closely. A fee charged on rent due costs you money even when the tenant does not pay; a fee on rent collected does not. Also check termination terms and who chooses contractors.
A worked example
Take a single-family rental at $1,800 a month. A 10% management fee is $180 a month, or $2,160 a year. If a tenant turns over every two years and the leasing fee is 75% of one month's rent, that adds $1,350 every two years, about $675 a year. Together that is roughly $2,835 a year, before maintenance markups.
On a property producing $300 a month of cash flow while self-managed, that is the difference between about $3,600 and about $765 a year. Enter your own management percentage in the rental property calculator and use the scenario table to see how the deal holds up.
When self-managing works well
- You live within a reasonable drive of the property.
- You own one or a few units with straightforward tenants.
- You have reliable contractors and time to answer calls.
- You are willing to learn your state's landlord-tenant, fair housing and security deposit rules.
When a manager earns the fee
- The property is out of state or far from home.
- You own several units and management is taking evenings and weekends.
- The local market has complex rules, such as rent regulation or strict notice requirements.
- You value predictable time more than the fee.
The middle ground
Many small landlords now self-manage with software that handles listings, applications, screening, leases and online rent collection. Some services go further, adding on-demand local help for showings or maintenance without a full management contract. These options can keep costs closer to self-managing while removing the most time-consuming tasks. Our landlord tools page lists examples.
Questions to ask a property manager
- How many doors do you manage, and how many per manager?
- What exactly does the monthly fee include, and what costs extra?
- How do you screen tenants, and what are your written criteria?
- What is your average vacancy time and tenant turnover?
- Who approves repairs, and above what dollar amount?
- How do I exit the contract, and what does it cost?
Model the property with and without a management fee.
Run the numbers →Sources
General information for U.S. landlords, not legal, tax or insurance advice. Rules vary by state and city; confirm requirements with a local attorney, licensed agent or tax professional.