top of page

Should You Self-Manage Your Rental Property? Discover the Hidden Costs

Writer's picture: Sankofa RealtySankofa Realty

Is self-managing your rental property worth it?  Uncover the hidden costs, time commitment, and risks that could hurt your bottom line as an investor.


Landlord stress

A staggering 66% of investors admit they regret trying to self-manage their rental properties. Is your investment property starting to feel like a second job?  Owning rental properties can be a lot of work. It can be hectic, from late-night maintenance calls to dealing with resident problems and piles of paperwork. You may wonder if the money you save on property management fees is worth the stress and time it takes to handle everything yourself. Many investors struggle with the decision to self-manage or outsource their property management. Considering what's best for your business and peace of mind is important.


Discover the hidden costs of self managing

The Hidden Costs of Self-Managing Rental Properties


Property management fees can seem easy to save money, but handling your rental property alone often comes with unexpected costs that can cut your profits. While the "do-it-yourself" approach may seem appealing, there are several hidden rental property expenses involved in self-managing rental properties that you'll need to consider.

Time is Money

Think about all the time spent advertising rental openings, vetting residents, showing properties, collecting rent payments, managing pape­rwork, and arranging maintenance. That's valuable time that could be devoted to finding new investment opportunities, expanding your investor network, or focusing on other income-generating projects.

Unexpected Rental Property Expenses

Legal disputes can quickly eat into your profits. For example, not handling security deposit deductions properly is a common re­ason residents sue investors, potentially costing you much more­ than a property management fee. Even minor maintenance problems, like a constantly dripping faucet, can turn into significant issues like mold and expensive structural damage. Extended vacancies from ineffective marketing or incorrect rental pricing significantly impact your ROI.

Expertise Matters

If you lack a deep understanding of the market, you may price your units too low, missing out on potential earnings. DIY repairs can lead to more significant, more costly issues later on. Tricky resident situations can quickly escalate if you haven't previously dealt with evictions or complex fair housing regulations.

The Stress Factor

Beyond the financial implications, self-managing rental properties come with a hefty dose of stress:

24/7 Availability

Emerge­ncy maintenance problems and te­nant disagreements can happe­n at any time. They are not just during regular business hours. Are you ready to be available around the clock?

Emotional Toll

Investors' duties can be overwhelming, with challenges like unruly residents, property risks, and the constant pressure to balance various responsibilities. This can lead to burnout, negatively impacting your overall well-being. Finding ways to manage these stressors effectively and prioritizing self-care is important.

Missed Opportunities

If property management takes up too much of your time and energy, it can hold back your growth as an investor. You might miss out on great deals or chances to grow your portfolio.


Benefits of Using a Property manager

Why Investors Outsource, Property Management


Savvy investors know the­ir time and skills are better used growing their investment portfolios rather than handling the daily tasks of property management. That's why they turn to professional management services. This allows them to focus on expanding their holdings while experts handle the day-to-day operations.

Professional Expertise

Property management companies have in-depth knowledge of local markets to optimize your rental income, and they stay up-to-date on ever-changing investor-resident laws, mitigating your risk of costly fines. Their established network of vendors often leads to better pricing and faster turnaround on maintenance.

Time Freedom

Outsourcing property management can free up your time, enabling you to focus on expanding your business and nurturing partnerships. It also includes a well-deserved break without the stress of managing your rental property.

Peace of Mind

Handing over the reins to experienced professionals brings peace of mind. You can trust that your property is well-maintained, residents are carefully screened, and issues are handled promptly and legally.

Scalability

If your goal is to grow your portfolio, you have only one way to outsource proper management services. It allows you to expand your holdings without becoming overwhelmed by an ever increasing workload.


Using a property manager makes you happy

Is Professional Property Management Right for You?


The decision to self-manage or outsource is personal. Here's how to decide:

Evaluate Your ROI

Calculate your accurate hourly return when factoring in your time on self-management. Are you saving money or losing out on greater returns by focusing on tasks outside your core competency?

Investment Goals

Do you desire passive income with minimal involvement, or do you enjoy the hands-on aspect of property management? Your goals will shape the right approach for you.

Sankofa Realty's Solution

Sankofa Realty is fully dedicated to solve all the potential problems you may be facing as an investor. We offer professional property management services so you can relax and put effort into growing your portfolio. 


Pros and Cons of using a property manager

Weighing the Pros and Cons


To help in your decision-making, let's summarize the pros and cons of self-managing rental properties vs. outsourcing:

Self-Managing

Pros

  1. You can save on management fees (although hidden costs can offset this).

  2. You will have complete control over all aspects of the operation.

Cons

  1. It needs a significant time commitment

  2. There are risks of legal and compliance errors

  3. You will face difficulty scaling your portfolio

  4. It will be an Emotional and mental toll

  5. You will require expertise in multiple areas (marketing, maintenance, law, etc.)

Outsourcing Property Management

Pros

  1. It will free up your time for higher-value activities

  2. You will have access to professional expertise and market knowledge

  3. It will Reduce stress and peace of mind

  4. You will have Improved scalability

  5. It has the potential for higher ROI over time

Cons

  1. There is a cost of property management fees

  2. You will be granting some control of your investments to a third party


Are you tired of juggling your inve­stment properties with your re­gular workload? Let Sankofa Realty handle the property management tasks so you can focus on growing your portfolio. Contact us today for a free consultation and learn how outsourcing proper management can free up your time and boost your investment returns.

1 view0 comments

Comments


Commenting has been turned off.
bottom of page