Self-Managing vs. Hiring a Property Management Company: What’s Best for Owners?

The impressive size of the U.S. rental market is evident from the fact that renters occupied approximately 45.5 million units in 2024. With a consistently strong demand for rental properties, it is prudent for landlords to seek methods to maximize their returns on their investment. 

However, being a property owner in 2025 comes with its share of new considerations and risks. This is often why many instead turn to hiring a

property management company

. 

But, how significant is the difference between self-management and hiring? What are the great and not-so-great aspects of choosing either route? And which option aligns better with you? This blog explores the principles of smart ownership in the 21st century.

Self-Managing a Property: Pros and Cons

Managing a rental unit entails everything from marketing the property, acquiring tenants, and drawing leases to handling maintenance and repairs and collecting rent. You also need to handle rent setting and revisions, and, if necessary, evictions. While these tasks may seem straightforward with a single or a couple of units, complexities are bound to arise with increased investments. 

Here are the key drawbacks and benefits of property management by yourself:

Pros: 

• Autonomy: Self-management implies autonomy and ultimate decision-making power, whether it comes to setting the rent, choosing tenants, or handling maintenance. Due to your direct involvement in the property management process, you will enjoy ample control. 
• Cost-Effectiveness: Hiring a property management company involves paying a periodic fee. But with self-management, the rental income is entirely yours to keep. 
• Learning Experience: Since you manage everything independently, you gain familiarity with the rental business and its associated laws. This helps with informed decision-making related to renovations, upgrades, or sales. 
• Direct Interaction with Tenants: You have the opportunity to forge a personal connection with tenants, as there is no intermediary involved. This helps you understand their specific requirements and preferences and resolve issues quickly and satisfactorily.   

Cons: 

• Consumes Substantial Time: Self-managing a property often requires you to be on call around the clock. Since you will be handling every little aspect of the rental process, from advertising to accounting, it can seem like a full-time job. For instance, a renter may require your assistance at midnight due to an issue with the property.
• Absence of Professional Expertise: Not hiring a property management company means you have to navigate legalities related to security deposits, fair housing, evictions, and tax reporting. If you don’t have enough knowledge about the same, you might wind up dealing with lawsuits and fines. 
• Physical and Emotional Toll: It can be frustrating to coordinate with multiple vendors when obtaining repairs. Late rent payments from tenants and repeated follow-ups can also be a long and arduous process. Being on call constantly can also progress to emotional and physical fatigue.

Working With a Property Management Company: Key Considerations

Hiring a property management company means that you can outsource your responsibilities and worries to someone professional while enjoying the benefits of ownership. Here’s how these companies operate and the pros and cons of availing their services.

What They Do:

• Market your property in a targeted fashion via effective channels to minimize vacancy periods
• Conduct rigorous resident screening (based on rental history, income, criminal background, etc.)
• Set rental prices by leveraging market knowledge 
• Chart out proper lease agreements, ensure compliance, and handle violations
• Consistently communicate with renters to make sure your property stays in good shape 
• Handle inspections, preventive maintenance, and 24/7 emergency repairs
• Ensure hassle-free move-ins and move-outs
• Deal with lease renewals and security deposits 
• Collect rent on time and periodically churn out financial reports rich in insights
• Track expenses and income, simplify tax filing, and ensure optimum return on investment 

Pros:   

• Market Understanding: One of the most pertinent benefits of property management through professionals is that you will have access to years of market knowledge. They can also utilize the appropriate analytical tools to compare localities, examine historical data, and consider various factors before determining rental prices. 
• Regulatory Compliance: Professional property managers are thoroughly familiar with laws and regulations at multiple levels: local, state, and federal. This means you don’t have to worry about permits, potential penalties or lawsuits.
• Efficient Maintenance: Ease of mind is the most pertinent advantage of hiring a property management company. They will have an established network of dependable contractors and vendors to conduct maintenance and repair jobs. This way, you can ensure prompt and top-quality work, satisfy and retain tenants, and even augment your property’s value. 
• No Stressful Interaction: Property managers vet prospective tenants thoroughly before drawing out final lease agreements. They also handle complaints and disputes efficiently without involving you. Issues such as delayed payment, property damage, and lease term violations are also handled efficiently.
• Healthy Financials: Property management companies make sure the rent collection happens on time and send reminders to tenants in case of delays. They also take measures, like imposing fines, in case of repeated delays. 

Cons: 

Hiring a property management company indeed involves paying them a certain fee and a small percentage of the rental income. However, in many ways, this fee pays for itself by affording peace of mind, consistent cash flow, and regulatory compliance.

Self-Management or Property Management Company: What’s Right for You?

Here’s how to decide which type of ownership suits your needs best: 

Self-Management:

Self-management can be an effective choice if you:

• Live near your rental properties and have just a single or a couple of units to manage
• Have enough time to handle all the work, accept calls from tenants at any time, and be available on weekends (if required)
• Can coordinate with multiple handymen, vendors, and contractors for repairs and maintenance 
• Are capable of tracking finances and taxes
• Know rental laws and regulations in detail, and can stay updated about changes
• Can handle cost-benefit analyses and know how to maximize profit 
• Don’t mind being hands-on and learning from scratch 

Property Management Company:

Hiring a property management company can be the best choice if you: 

• Live at some distance from your rental units and cannot travel to and fro regularly 
• Have multiple units to manage 
• Have a primary job and cannot take out enough time or ensure flexibility 
• Are interested in making passive income from your properties 
• Are new to the rental business
• Lack enough knowledge about the regulations and laws related to the rental business at the state and local level
• Don’t want to interact with tenants directly, handle lease violations or delayed payments, or get involved in disputes 
• Can’t or don’t want to invest time and energy in advertising, tenant screening, lease preparation, rent collection, maintenance, and accounting

Conclusion 

It may be possible to manage one or two rental units on your own if you have the time, energy, dedication, and live nearby. However, if you live far away, cannot spare much time, or want a stress-free landlord experience while earning passively, hiring a

residential property management

 company makes sense. A reliable and experienced company can help you maximize profits, stay legally compliant, and even handle unpleasant situations, such as delayed rent payments, disputes, and evictions.

Trust Guardian Property Management to Make the Most of Your Rental Business 

You deserve a partner who can maximize returns while minimizing stress. At Guardian Property Management, we bring over 20 years of hands-on experience and deep local knowledge to every property we manage.

Our experience, advisors and network make us the best choice for

residential property management in Minnesota

. We endeavour to deliver optimal outcomes while helping you grow your rental business.

Connect with us for tailored advice. 

Call us at

651-287-2011

 or at info@guardianprop.com