Should You Self-Manage or Hire a Property Manager for Your Chicago House Hack?

[Jarret Jarvis]

House hacking in Chicago can be a game-changer—letting you live for free (or close to it) while building wealth through real estate. But once you have tenants, the big question arises: Should you self-manage or hire a property manager?

Both options have pros and cons, and the right choice depends on your lifestyle, experience, and long-term goals. Let’s break it down.

Self-Managing Your Chicago House Hack

Pros of Self-Managing

✅ More Cash Flow – Property managers typically charge 8-12% of monthly rent. By managing yourself, you keep that money in your pocket.

✅ Hands-On Experience – If you plan to grow your real estate portfolio, managing tenants yourself can teach you valuable lessons about leases, maintenance, and local rental laws.

✅ More Control – You’ll personally handle tenant screening, rent collection, and property upkeep, ensuring everything is done to your standards.

✅ Stronger Tenant Relationships – Being involved directly allows you to build rapport with your tenants, which can lead to better communication and longer leases.

Cons of Self-Managing

❌ Time-Consuming – Dealing with maintenance requests, late-night emergencies, and tenant disputes can quickly become a second job.

❌ Legal Risks – Chicago has strict landlord-tenant laws. If you’re not well-versed in lease agreements, security deposit rules, or eviction procedures, you could run into trouble.

❌ Emotional Stress – Handling tenant issues (especially late payments or evictions) can be stressful, especially if you live in the same building.

Hiring a Property Manager in Chicago

Pros of Hiring a Property Manager

✅ Less Stress & Time Commitment – A property manager handles everything from finding tenants to collecting rent and coordinating repairs. This is ideal if you have a full-time job or don’t want to deal with day-to-day landlord tasks.

✅ Professional Tenant Screening – Property managers have systems in place to screen applicants thoroughly, reducing the risk of bad tenants.

✅ Knowledge of Chicago Rental Laws – A good property manager stays up to date on local laws, helping you avoid costly legal mistakes.

✅ Maintenance & Repairs Handled – No more emergency calls at 2 AM about a broken water heater! Property managers have established vendor relationships and can handle issues quickly.

Cons of Hiring a Property Manager

❌ Lower Profit Margins – Management fees (typically 8-12% of monthly rent) eat into your cash flow, which can be a dealbreaker if your margins are tight.

❌ Less Control Over Tenants & Maintenance – You won’t be as involved in selecting tenants or overseeing repairs, which might lead to decisions you wouldn’t have made yourself.

❌ Not All Property Managers Are Great – A bad property manager can neglect your property, overcharge for repairs, or poorly handle tenant relations, leading to unnecessary headaches.

Which Option Is Right for You?

Consider self-managing if:
✔️ You have the time to handle tenant issues and maintenance requests.
✔️ You want to maximize profits and keep full control.
✔️ You’re willing to learn Chicago’s landlord-tenant laws.

Consider hiring a property manager if:
✔️ You have a busy schedule or don’t want landlord responsibilities.
✔️ Your house hack is more than a 2-unit property and requires more oversight.
✔️ You’d rather pay for peace of mind and legal compliance.

Final Thoughts

If you’re house hacking a small multi-unit (like a 2- or 3-flat) and are comfortable being hands-on, self-managing can be a great way to save money and learn the business. However, if your time is limited or you don’t want to deal with tenants directly, hiring a property manager can make your life much easier—just be sure to choose one with solid local experience.

Are you currently house hacking in Chicago? Drop a comment below and share your experience with self-managing or working with a property manager!