The question every rental property owner eventually faces: should I manage my properties myself or hire a property manager? The answer depends on your portfolio size, available time, comfort with tenant interactions, and most importantly, the actual numbers. Most landlords overestimate the complexity of self-management and underestimate how much property managers really cost.

What Property Managers Actually Charge

Monthly management fee: 8% to 12% of collected rent. On a $1,500/month rental, that is $120 to $180/month or $1,440 to $2,160/year per unit.

Leasing fee: 50% to 100% of one month of rent every time they place a new tenant. If your $1,500 unit turns over once per year, that is another $750 to $1,500.

Maintenance markup: 10% to 20% added to every contractor invoice. A $500 plumbing repair becomes $550 to $600.

Other fees: Lease renewal fees ($100 to $300), vacancy fees, advertising fees, and early termination penalties.

For a landlord with 5 units at $1,500 each, a property manager at 10% plus one turnover costs roughly $10,800 to $15,000 per year.

What Self-Management Actually Costs

Property management software: $0 to $19/month ($0 to $228/year). Tenant screening: $30 to $55 per applicant (often tenant-paid). Lease template: free or under $50. Total tool cost: under $300/year.

Time investment for a stable 5-unit portfolio: 2 to 5 hours per month. During turnovers, add 10 to 15 hours. Annual estimate: 40 to 80 hours for 5 units.

The Real Comparison

Property manager for 5 units: $10,800 to $15,000/year. Self-management: $300/year in tools plus 40 to 80 hours. At $50/hour for your time, self-management costs $2,300 to $4,300/year. Savings: $6,500 to $12,700 annually. Over 10 years, that is $65,000 to $127,000 kept in your pocket.

When a Property Manager Makes Sense

Hire a manager if you live far from your properties, own 20+ units, operate in a complex regulatory environment, or the time trade-off does not work for your schedule. For most independent landlords with under 10 local units, self-management with good software wins.

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Frequently Asked Questions

What percentage do property managers charge?

Property managers typically charge 8 to 12% of monthly rent, plus leasing fees when placing a new tenant, and maintenance markups of 10 to 20% on contractor bills.