Should You Self-Manage or Hire a Property Manager?
Self-management saves money — typically $100 to $300 per month per unit — but requires significant time and availability. Managing tenants, handling emergencies, and navigating legal requirements is a second job. Professional managers handle everything and bring expertise in tenant law, eviction procedures, and vendor relationships. The right choice depends on your proximity to the property, your time constraints, and how many units you own.
What Does a Property Manager Actually Do?
A full-service property manager markets vacant units, screens applicants, drafts leases, collects rent, handles maintenance calls, coordinates repairs, manages evictions, inspects properties, and provides monthly financial statements. They serve as the point of contact for tenants so owners can remain hands-off. Good property managers also keep owners informed of market rent rates and local regulatory changes.
How Do You Choose a Good Property Management Company?
Ask about their current portfolio size, average vacancy rates, tenant retention statistics, and response time for maintenance issues. Request references from current clients. Review their management agreement carefully — look for fee structures, early termination clauses, and how they handle maintenance authorization thresholds. Local expertise matters more than company size when it comes to knowing tenant law and local vendors.
Frequently asked questions
Are property management fees tax-deductible?
Yes. Property management fees are an operating expense fully deductible against rental income. They reduce your taxable net income from the property, making professional management even more cost-effective on an after-tax basis.
What happens if a property manager mishandles my property?
Review your management agreement for remedies and notice requirements. Document all communication. If you have financial losses due to negligence, you may have grounds for legal action. Check whether the property manager is licensed and bonded in your state, which provides an additional recourse avenue.