Owning rental properties can be a rewarding investment, but managing them comes with challenges. If you're a real estate investor, you may be weighing the pros and cons of hiring a property management company versus self-managing. The question is: Are property management fees worth it for landlords? Let’s break down what property managers do, how much they charge, and whether hiring a professional is the right choice for you.
The Role of a Property Management Company
A reputable property management company takes over the day-to-day operations of rental properties, handling tasks that can be time-consuming and stressful for landlords. Some of the key responsibilities include:
Tenant Screening – Finding responsible tenants through background checks, credit reports, and rental history verification.
Rent Collection – Ensuring rent payments are made on time and handling any late payments.
Property Maintenance – Managing maintenance requests and property upkeep to keep the investment in good condition.
Lease Agreements & Legal Compliance – Drafting legally sound leases, adhering to landlord-tenant laws, and handling legal matters like evictions.
Marketing Vacant Properties – Advertising listings and conducting showings to attract potential tenants.
Tenant Relations & Retention – Addressing tenant inquiries, resolving complaints, and ensuring tenant retention to minimize turnover.
Most property managers have extensive knowledge of fair housing regulations, tax rules, and local laws, helping landlords avoid costly legal mistakes.
How Much Do Property Managers Charge?
Property management fees vary based on location, the number of rental properties owned, and the level of service required. In Omaha, Nebraska, most property management companies charge:
Monthly Management Fee: Typically 8-12% of the monthly rent.
Leasing Fee: A one-time fee for finding new tenants, often equal to one month’s rent or a percentage of it.
Maintenance Fees: Some management companies charge extra for coordinating property maintenance and repairs.
Eviction Fees: If an eviction is necessary, landlords may pay additional legal and court fees.
While hiring a property manager adds an expense, it can also maximize rental income by ensuring tenants pay rent on time and properties remain occupied.
The Pros and Cons of Hiring a Property Manager
Before making a decision, it’s important to weigh the pros and cons of hiring a property management company.
Pros of Hiring a Property Manager
Hiring a property manager can make rental ownership significantly easier, especially for landlords who manage multiple properties or have other full-time commitments. A professional property manager handles the critical aspects of property operations, from tenant screening to legal compliance, allowing landlords to focus on growing their real estate investment. Here’s a closer look at the key benefits of working with a property management company.
✔ Saves Time & Reduces Stress – Landlords who own multiple properties or have full-time jobs can benefit from delegating tasks to a professional property manager.
✔ Legal Protection & Compliance – Avoiding legal pitfalls related to lease agreements, security deposits, and fair housing regulations.
✔ Efficient Tenant Screening & Rent Collection – Reducing tenant turnover by selecting responsible tenants and enforcing rent payments.
✔ Expert Property Marketing – Ensuring vacancies are filled quickly with high-quality prospective tenants.
✔ 24/7 Maintenance Handling – No need to be on-call for maintenance issues, tenant complaints, or emergency repairs.
✔ Improved Cash Flow – Proper rent price setting and professional management lead to steady rental income.
✔ Tax Deductions & Financial Benefits – Property management fees may be tax-deductible, making them a financial advantage in the long run.
✔ Consistent Property Upkeep – Routine inspections and maintenance prevent costly repairs down the line.
Cons of Hiring a Property Manager
While hiring a property manager offers many benefits, it's essential to consider the potential drawbacks. Property owners should weigh the costs, control, and communication factors before making a decision. Here’s a closer look at some of the cons of working with a property management company.
❌ Property Managers Charge Fees – The biggest drawback is the cost, which can cut into profits.
❌ Less Control Over Decisions – Property owners who prefer complete control over tenant selection, rent price, and property operations may find this challenging.
❌ Not All Companies Are Equal – Some management companies offer better services than others, so selecting a reputable property management company is crucial.
❌ Communication Barriers – Some landlords prefer direct interaction with tenants, which may be limited when using a management company.
Should You Self-Manage Your Rentals or Hire a Professional?
Self-managing might seem appealing, especially if you want to save money. However, self-management comes with its own challenges:
Time Commitment: Managing tenants, collecting rent, handling maintenance issues, and legal compliance require significant time.
Tenant Screening & Turnover Risks: Without professional screening, you might end up with tenants who pay rent late or cause property damage.
Legal and Tax Complexities: Navigating landlord-tenant laws, tax deductions, and fair housing regulations can be overwhelming for many landlords.
Handling Emergency Repairs: If something breaks in the middle of the night, you’re responsible for coordinating repairs immediately.
Dealing with Difficult Tenants: Late payments, lease violations, and tenant disputes can become stressful and time-consuming.
Who Should Self-Manage?
Landlords with only one or two properties.
Those who live near their rental properties and can respond quickly to tenant issues.
Investors with experience in property operations, legal compliance, and tenant relations.
Landlords who enjoy direct involvement in selecting tenants and handling day-to-day operations.
Who Should Hire a Property Manager?
Landlords with multiple properties who need help with day-to-day operations.
Investors who live far from their real estate properties.
Property owners who prefer passive income without dealing with tenant complaints or maintenance requests.
Landlords who want a professional management approach to maximize rental investment returns.
Those looking to expand their rental business and need professional oversight to scale efficiently.
Should You Hire a Property Manager?
At Aksarben Property Management, we understand the challenges of managing rental real estate. Hiring a professional property manager can save you time, reduce stress, and ensure your investment property runs smoothly. Whether you own rentals in Omaha, Nebraska, or are expanding your rental business, a reputable property management company can help streamline operations, enhance tenant retention, and protect your rental income.
If you’re debating between self-managing or hiring a pro, consider how much your time is worth. Would you rather handle maintenance issues, rent collection, and legal compliance on your own, or let experienced property managers take care of it for you?
For more information on how Aksarben Property Management can help maximize your rental investment, contact us today!
