should I manage alone or property manager?

Question

I am 74 female, been managing a duplex for yrs without too much difficulty but tired of it - have vacancy coming and several repairs required.  Had someone in mind who I thought would be great but he wants to add fees that I feel are unfair including $200 admin fee (on top of credit report fees) and mandatory 41.45 monthly for enrollment in their program which includes rental insurance and hvac filters, identity ins, and a few other little things.

I've managed to keep costs pretty low for my tenants but realize I've been cheating myself. one is buying. they were stable for 4 yrs. so would like to hand it over but cannot abide by these things. Also, I'm supposed to add mgr to my insurances which I don't think they will. Plus if he uses his maintenance staff for repairs, he adds charges "to market."

Spent lots of time getting a Virginia lease ready and want to back off the mgr but wondering if I should just go with it. Like to hear from DIY landlords and if its better to turn everything over to protect myself or if I'm overthinking it.

Adam Bartomeo · Answer

I normally try not to work with people like you because your expectations are unrealistic. You have managed your property for a longtime and spend time doing things because you have time. Now, you are thinking about hiring a business that must be profitable but fell that it is "unfair". These types of owners expect million-dollar service but only pay pennies. I suggest that you either release the reigns completely or continue self-managing.

Marcus Auerbach · Answer

This is a tough one. There is so much cost to running a (any) business, even changing a light bulb is expensive for a PM. We have our own team for our properties and we don't manage for third parties, but I do see the cost.

You have to have qualified technicians on staff, good luck finding someone for under $70,000 plus benefits these days. Licensed and Insured, of course. You need a company vehicle for the guy to get there. That also needs to be insured and has a monthly lease payment. He finds out the light fixture is not broken, just needs a new bulb, but it's a special type. Now go drive to buy one, of course it's end of the day.  So give another 12h notice to the tenant, drive there again and install.

So now you have a total of 3.5 hours at $65 (cost to the PM owner) plus $12 for the special light bulb. And because the PM is not a non-profit, they mark it up 20% and now you get a bill for $287 to change a light bulb.. seems unfair.

Drew Sygit · Answer

@Patricia Via sticker shock is everywhere! Go look at new car prices:(

What is the $200 admin fee? Not understanding that...

The $41.45 is what's called a Resident Benefits Package, and is growing in popularity in our industry. It's charged to the tenant, but may be charged to the owner if tenant stops paying - if owner agrees. - Many of the Renter's Insurance policies do offer limited damage protection to owner, so it may be a good business decision for an owner to pay while tenant being evicted.

Property managers CANNOT get liability insurance on a property they have no ownership interest in. Everyone always confuses PMC liability insurance on their own office and Errors & Ommission insurance with rental property liability coverage. We won't manage a property w/o an owner adding us to their policy.- Some PMCs have a master commerical insurance policy they add their owners to, but charge the owner monthly for this. Not the best solution because if you terminate your PMC, you may forget or delay getting your own insurance again.

Interview several PMCs and ask a lot of questions about HOW they execute the services they provide. This is the #1 issue we see - owners not understanding, so then their expectations are not met.

Eric Fernwood · Answer

Hello @Patricia Via,

Our investment business in Las Vegas has delivered over 530 investment properties to clients worldwide. Property management is one of our core services, and we've worked with numerous property managers over the years. In this post, I'll share my thoughts on the value of a good property manager and how to select one. I hope this will help.

Should You Self-Manage or Hire a Property Manager?

Based on years of experience with over 530 investment properties in Las Vegas, here are some thoughts to help you evaluate the value of property managers and how to find a good one.

The Value of a Good Property Manager

Many people believe that a property manager's only value is collecting the rent. While important, it is not the only value.

• Selecting reliable tenants is the most valuable service a property manager provides. Avoiding problematic tenants from the start is the best way to prevent problems like non-payment, eviction, and property damage. This specialized skill is rare—after working with many property managers in Las Vegas over the years, I found only two I would trust to place tenants in my properties.
• Contracts and processes must comply with all city, state, and federal regulations. Property managers typically belong to state or national organizations that continuously update their contracts and processes to maintain compliance. Unless you monitor regulations full-time, staying compliant is nearly impossible—and a single mistake can cost more than years of property management fees.
• Properties don't pay rent—tenants do. Deep knowledge of tenant segments and their behaviors is essential, and this expertise comes only through a good property manager. A good property manager can guide you in selecting properties that will attract a tenant segment with a high concentration of reliable people.
• Access to cost-effective resources for renovation and repairs.
• Lease terms enforcement. Proactively managing tenants greatly reduces evictions and other problems.

Finding a Good Property Manager

Good property managers are rare, so finding one requires a structured process:

• Define Your Needs
List required services based on property type and location. For example, if you’re investing in residential properties on the southwest side of town, eliminate property managers focused on commercial properties or other areas.
• Research Candidates

Search Engines: Be cautious—Google rankings often reflect marketing, not quality.
Yelp Reviews: Read reviews critically; tenants, not property owners, typically write them. A negative review from a tenant could be a positive review for an owner.
Networking: Use forums like BiggerPockets for recommendations, but conduct thorough research yourself.
• Search Engines: Be cautious—Google rankings often reflect marketing, not quality.
• Yelp Reviews: Read reviews critically; tenants, not property owners, typically write them. A negative review from a tenant could be a positive review for an owner.
• Networking: Use forums like BiggerPockets for recommendations, but conduct thorough research yourself.
• Initial Screening
Narrow your list to 5-10 candidates by reviewing their websites and scheduling Zoom interviews. Prepare a list of 10 key questions, such as:

How long have you been managing properties?
How many properties do you manage, where, and what types?
What are your fees?
Do you have an in-house repair staff? (Avoid managers who profit from repairs.)
How do you screen prospective tenants?
What advice would you give a new investor buying their first property?
• How long have you been managing properties?
• How many properties do you manage, where, and what types?
• What are your fees?
• Do you have an in-house repair staff? (Avoid managers who profit from repairs.)
• How do you screen prospective tenants?
• What advice would you give a new investor buying their first property?
• In-Depth Evaluation
For shortlisted candidates, schedule follow-up interviews. Ask key questions like: "What's the average tenant stay length?" and "What's your typical time to rent a property?" Request sample documents, including management agreements and monthly statements. Visit their office (or request a virtual tour) to assess professionalism. If the office is disorganized, their processes likely are, too.

• Search Engines: Be cautious—Google rankings often reflect marketing, not quality.
• Yelp Reviews: Read reviews critically; tenants, not property owners, typically write them. A negative review from a tenant could be a positive review for an owner.
• Networking: Use forums like BiggerPockets for recommendations, but conduct thorough research yourself.

• How long have you been managing properties?
• How many properties do you manage, where, and what types?
• What are your fees?
• Do you have an in-house repair staff? (Avoid managers who profit from repairs.)
• How do you screen prospective tenants?
• What advice would you give a new investor buying their first property?

Other Considerations

• Experience: Choose medium-sized firms—they balance resources and personal attention better than large or small firms.
• Fees: you cannot afford a discount property manager. However, higher fees do not necessarily indicate skills.

Final Thoughts

A skilled property manager can save you time, minimize risks, and boost profitability. Choose a manager whose approach aligns with your investment goals, and remember—value matters more than cost.

Michelle Fenn · Answer

I am 67 and a realtor and property manager.   My exit strategy is to sell off my multi-family rentals and exchange them for single family homes in desirable neighborhoods.    I am putting in place what I determine to be responsible tenants that want to be home owners in the future.   I then rent for at least a year, if they pay in a timely manner and keep up the property I offer to seller finance the home to the tenant.  I have now sold off 2 homes, I will close on another in Jan 2025 and a new tenant is interested in buying the rental home in 2026.  I am building a monthly passive cash flow for my retirement.   I have even sold off the notes in the past at a small discount when I needed to raise cash quickly.

Henry T. · Answer

My hats off to you for hanging in there at 74. Is Virginia a landlord friendly place? Seattle is very unfriendly, and I'm getting out. I'm too old to start in another more friendly state, so I'm cashing in my chips, one by one. I don't have the stomach for 81 pages of landlord/tenant law that favors only the tenant.  Funny, I used to enjoy it,  but now (in Seattle) I feel its a trap waiting to happen.  Unless you're handing down to family, maybe its a good time to sell. You might make more money in a good interest account or dividend paying stocks, without the hassles of tenants.  Property manager, I've considered it, but not there yet.  I'm still able to get to my other properties outside of Seattle for now.

Clare Pitcher · Answer

Patricia-

If you are looking into professional management, one of the first questions I would ask is about their cancelation policies as well as reading their reviews. I currently work for a property management company and we do month-to-month management. If the owners and the property managers are not getting along or seeing eye to eye there is no reason to trap either party into a year-long contract. Tring out a company for 6 months or so could help you out. There will inevitably be a bump or two in the road at the beginning of the process, but find a company with good reviews. You are hiring the PM, but they are also hiring you, so make sure it is a good fit for both of you so you can best meet each other's needs. How they communicate from day 1 will be a projection of your experience together. Let me know if you have any questions moving forward!

Nathan Gesner · Answer

It's hard to answer without knowing all the specifics.

"Nobody will manage your investment better than you will."

That's one of the most common fallacies in real estate investing. The truth is, a large percentage of landlords lose more money making rookie mistakes than they would pay for professional property management. In my book, I share an example of a DIY Landlord who lost over $20,000 in two years with just one of her five properties. In my first two years of management, she earned over $20,000 net profit, the property was in better condition,  she could quit her full-time job, and her health significantly improved because she was no longer stressed. She's one of my extreme examples, but this is a common story. Most of my landlords have more time, earn more money, and experience less stress because I handle things for them.

should I manage alone or property manager?

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