Choosing the right property management approach significantly impacts your investment returns and time commitment. This guide helps you decide between self-management and professional services based on your circumstances and goals.
Professional Property Management
Professional managers handle all aspects of rental management:
- Tenant Screening: Comprehensive background and credit checks
- Rent Collection: Automated payment processing and arrears management
- Maintenance Coordination: 24/7 emergency response and routine maintenance
- Legal Compliance: Understanding of tenancy laws and regulations
- Regular Inspections: Property condition monitoring and reporting
Professional Management Costs
- • Management fees: 6-8% of rental income
- • Letting fees: 1-2 weeks rent for new tenancies
- • Advertising costs: $100-300 per vacancy
- • Inspection fees: $50-150 per inspection
Self-Management Benefits and Challenges
DIY management offers control but requires significant time investment:
- Cost Savings: Retain 6-8% management fees
- Direct Control: Personal oversight of tenant relationships
- Time Commitment: Significant ongoing responsibilities
- Legal Risks: Responsibility for compliance and disputes
Consider your time availability, local market knowledge, and portfolio size when choosing between professional management and self-management. Many investors start with self-management and transition to professionals as portfolios grow.