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Owning rental property opens up new opportunities for passive income, building wealth, and even picking up some unexpected life lessons along the way. Whether to hire a property manager or handle things on your own is a question that trips up plenty of both new and experienced investors. Sometimes handling all the details feels doable, but there are moments when bringing in help simply makes sense.

How Property Management Works

Property managers take on the daily business involved in owning rental properties. Their list of tasks stretches from marketing and leasing all the way through maintenance and settling tenant disputes. Instead of managing middle-of-the-night calls about leaky faucets or chasing down late rent, you can step back while someone else fields the headaches for you.

Property managers usually work for a fee or a percentage of the rent. Some owners see this as just another business cost; others view it as an investment in time, peace of mind, and keeping tenants happy so the property runs smoothly. Property managers also have hands-on industry knowledge about areas like local landlord and tenant laws, which keeps you out of trouble and helps with compliance.

When to Consider Hiring a Property Manager

• You don’t live near your rental property: Handling emergencies, showing units, or scheduling maintenance gets tricky from far away. If going to the property means a long drive or even a flight, the effort quickly outweighs the benefits.
• The process eats into your free time: Rental properties can feel like a second job. If late-night calls or endless paperwork have you feeling overwhelmed, it might be time to carve out more space for yourself.
• Struggles with finding quality tenants: Screening applicants is tough, and a high vacancy rate is expensive. Good property managers bring more effective ways to bring in reliable tenants and keep your units full.
• Maintenance feels overwhelming: Juggling emergency repairs, routine checks, and lining up vendors can eat up your personal time—or interfere with other work. If it’s hard to keep up, handing this off brings great relief.
• You own multiple units or properties: A single rental might be manageable, but scaling up gets complicated fast. Larger portfolios benefit from systems and resources a property manager brings.
• You want the investment to be as hands-off as possible: If you prefer letting your real estate investment work in the background, property managers step up to do the work for you.

Benefits of Self-Managing Rental Property

• Potentially lower costs: Skipping management fees lets you keep more cash each month. That extra profit appeals especially to budget-conscious investors or those just starting out.
• Complete control: You make all the decisions about tenants, repairs, renovations, and policies. It gives you a hands-on look at all aspects of your investment.
• Stronger tenant relationships: Managing personally makes it easier to build rapport and encourage tenants to respect your property. This comes in handy for communication, retaining tenants, and even getting referrals when a unit opens up.
• Firsthand experience: Handling daily details on your own delivers valuable insights into what works—and what doesn’t. That kind of practical knowledge will serve you well as your rental business grows.

This approach often makes sense for those with just one or a handful of properties, some spare time, or a desire to learn as they go. Testing things out with your first rental helps you figure out what you enjoy and what you’d rather pass off.

How to Decide Which Choice is Right for You

Deciding between hiring a property manager or doing things yourself really boils down to a few key points: where you live, how much time you have, the number of units, your budget, and how much stress you’re willing to take on. Thinking through these areas in your situation will give you the clearest answer.

Ask Yourself:

• Can I get to my rental quickly if something goes wrong? Do I have the time to respond to issues fast?
• Am I up for handling rent collection, repairs, marketing, accounting, and legal challenges—or am I ready to learn the ropes?
• Do I want or need the investment income to feel as passive as possible?
• Am I comfortable giving up a slice of my rental income if it means freeing up time?
• Are any savings from self-managing important enough to be worth the time and effort I’ll need to put in?

If you feel buried in rental headaches or find that managing your property turns into more of a chore than steady income, paying for professional help might be well worth it. But for those who like being hands-on or need to keep their budget tight, self-managing has its upsides.

Challenges (and Solutions) With Each Approach

Hiring a Property Manager

• Expense: Management fees often come in between 8% and 12% of your Gross monthly rent. Some property managers ask for extra payments for placing tenants or arranging repairs. For properties with slim margins, this might be a dealbreaker.
• Finding a reliable partner: Not all property management companies provide the same service quality. Take time to read reviews, check with other landlords, and ask specific questions about their processes.
• Less control day-to-day: Passing jobs off means you won’t have the final say in every detail. Good communication is crucial for smooth operations and avoiding surprises with tenants or maintenance.

Self-Managing Rentals

• Time commitment: When you self-manage, everything falls on your shoulders—from late-night repair calls to following up on missed payments. Preparation and staying organized are extremely helpful, but the workload is real.
• Lack of industry know-how: If you’re new to rental property, navigating legal rules can be tricky. Online courses, landlord associations, and books are excellent resources to fill in knowledge gaps.
• Tenant relationships: Getting too close (or too distant) with tenants can blur boundaries and create stress. Setting expectations and sticking to lease agreements keeps things on track.

Tips for Success, Whatever Path You Pick

Whether you hire a manager or run your properties solo, the following tips help keep things smooth:

• Use property management software: Platforms like Buildium, AppFolio, or even simple spreadsheets help with everything from collecting rent to tracking maintenance issues. As your business grows, automating tasks makes a big difference.
• Keep thorough records: Good documentation matters if a dispute pops up, you want to refinance, or lenders ask for income proof. Save lease agreements, receipts, and maintenance logs digitally for easy access.
• Stay up-to-date on laws: Landlord and tenant regulations can change, so it’s wise to join your local housing newsletter, participate in landlord groups, or talk to legal experts. This helps you avoid mistakes early on.
• Communicate openly and frequently: Fast, clear communication builds trust with tenants and property managers. Even casual check-in emails boost tenant retention and keep operations running well.

Frequently Asked Questions

Do you have to hire a property manager for rental property?
No, it’s not required. Many landlords handle it themselves, especially if they own just one or two properties. A property manager can be great if you want minimal hands-on involvement or if the workload becomes overwhelming.

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What’s a typical property management fee?
Most property management companies charge between 8 and 12 percent of your gross monthly rent. Some have bonus fees for tenant placement or managing repairs. Go through the contract and ask about any and all charges before signing.

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When is the right time to stop self-managing?
If landlord duties get too stressful, your portfolio is expanding, or personal obligations keep piling up, consider hiring a property manager to keep your rentals running smoothly.

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How do I find a good property management company?
Ask local landlords, check online reviews, and interview candidates about their process, experience, and how they handle evictions and emergencies. Always check references before making your final choice.

Final Thoughts

Choosing to hire a property manager or handle rentals yourself is a personal call. Everybody’s goals, available time, and appetite for risk vary. Sizing up your situation honestly helps you decide what fits best. If your aim is steady income without the stress, hiring a property manager is often the best way to go. If you want to maximize profits and learn every part of real estate, self-management might be worth the effort. Either way, planning ahead and using good resources makes real estate investing more rewarding—and a whole lot less stressful.

When someone is interested in starting a real estate investing portfolio, it means that you are actually starting an investment business. It is always a good time to start planning and taking the time to understand each step along the process. Let’s dive into this discussion and give specific details for building wealth in Real Estate.

The planning process is critical to understand that there are many moving parts in the Real estate investing niche. There are several exit strategies to consider. Wait? What do I mean by exit strategies? Well, exit strategies are the multiple ways you plan to exit or transfer into another mode of investing. This could be a complete SALE of your investment property, it could mean that you will lease your property and sell it Later. It could also mean that you plan to keep your property LONG TERM for passive income/steady cashflow. In addition, you never plan to sell the investment, only instead, you continue to capture money from it thru refinancing.

THE Wealth Process Begins At The Purchase

How to build wealth in Real Estate begins with buying investment properties at a discounted price. Then and only then can you capture the savings needed for later on during the process. Lets say for example, your are going to complete a Fix and Flip strategy. This generally means that you are planning to purchase a “distressed” property at a steep discount. Once you have completed the closing process, you will estimate repairs to rehab this property at a HIGH Level. The plan involves fixing all repairs needed and going above and beyond so that the home is practically BRAND NEW. You are going above and beyond on your repair budget because you ULTIMATELY want to sell or FLIP this investment property to a RETAIL Buyer, or potential HOMEOWNER at RETAIL Price. The difference or SPREAD between the RETAIL price and your buying price including ALL expenses needed to get the property to be SELL-READY will be your Profit. Typical profits for a good Fix and Flip could average around $25k and higher depending on your location in the country you reside in and comparable sales in the city/state you live in.

Another strategy that a potential investor could plan for is called the BRRRR Strategy. BRRRR stands for (Buy, Rehab, Rent, Refinance, Repeat). This strategy is similar to the Fix and Flip except that the once the investor completes the rehab work, he rents it out to Qualified tenants in a great location and charges premium Rent price for staying in the investment property. The purchase would be the same as if it were a Fix and Flip except that the strategy is Buy and Hold for cashflow. After a year, maybe longer, the investor would then refinance to pull the equity out of the property and use those funds as down payment for the NEXT rental property. Therefore, repeating this process as long as the investor has done his due diligence on the property, the location, and has looked at COMPS or Comparable sales in that area, then this can be repeated.

Ways To Reduce Your Risk

First thing that comes to mind is Insurance. Make sure that you have insurance covering the investment property. It is not the same as homeowner’s insurance, but the policy coverage is similar. Next, is the entity type that owns the investment property. Check with your Real estate attorney to determine the best type of entity is best for your investing situation. Whether its an LLC or S-Corp or LLP, the entity type should match what your plan is going to be including your exit strategy. Another way to reduce your risk is by controlling your spending specifically when it comes to Rehab costs. This means choosing reputable contractors and sub-contractors that are licensed, bonded and insured. Lastly, and most importantly when choosing to set your investment property for a rental, a good property Management team must be worth their weight in gold. They must be able to screen tenants, collect rents TIMELY AND if necessary serve eviction notices promptly should the tenants become unable to honor their lease.

Completing The Process Is Rewarding

Whatever strategy has been used and there are lots more that was not mentioned, however, the point is to surround yourself with experts in the field of real estate investing. If you are a beginner, take notes and document your experiences at each phase, whether its written down or recorded on video or audio. Repeat the process and show your progress to others who can partner with you. Each time, you gain more experience and also you utilize Leverage. There are several forms of leverage commonly known as OPT (Other People’s Time) and definitely OPM (Other People’s Money). This is how to build wealth in Real Estate!

 

I will begin this discussion with explaining why I am passionate about receiving passive income.  First, the short

version is that it is the opposite of earned income.  So, let me explain – in order to get earned income you must show up & produce a certain amount of duties over a certain period of time.  These duties may be labor intensive or mentally intensive.  Either way, you had to work & produce results in order to get paid at the end of the day/week or however your payroll department rolls out checks.  In addition, in order to receive earned income you must show up in some capacity, otherwise you don’t get paid.

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