I’ve been self-managing my rentals for years—first while living locally in the Detroit area and then from out-of-state after moving back to California.
But recently, I’ve made the decision to transition to professional property management.
This shift has given me a lot to think about, and I want to share my experiences and insights to help you decide whether self-management is the right move for you.
The Case for Self-Managing Rentals
Self-managing your rental properties can be a great way to maximize profits and gain hands-on experience in the early stages of your investing journey.
It puts you in control—allowing you to save on management fees, personally screen tenants, and build a deep understanding of the day-to-day operations.
But it’s not just about the money saved; it’s about learning the ropes, developing strong tenant relationships, and ultimately becoming a better investor.
Let’s break down why self-management might make sense for you.
Saving on Property Management Fees
Saving money on property management fees is obviously a huge perk, but it’s even more critical when you’re just getting started.
And it’s not just about the 8-10% management fee that most PMs charge.
There are also tenant placement fees, maintenance markups, and other hidden costs that can quickly eat into your profits.
When you’re self-managing, you’re in control of these expenses and can shop around for the best pricing on repairs and do the tenant placement yourself. These also have great benefits in themselves that I’ll talk about later.
Learning the Business
In my opinion, this is actually more important than the savings you get from self-management.
When you’re managing your own properties, you’re hands-on with every issue—big or small.
You learn how to handle common maintenance problems, what repairs and capital expenditures really cost, and how to effectively deal with tenants.
This firsthand experience is invaluable for the long term because at some point, you’ll likely want to hand things off to a property manager.
And when that time comes, having a deep understanding of what goes into managing a property will allow you to call BS on a PM if they try to overcharge or cut corners.
Building Strong Tenant Relationships (and Screening)
One of the biggest advantages of self-management is the ability to personally screen and select your tenants.
As the owner, I take more care and consideration when screening tenants than a property manager would. In higher-end, more affluent markets, tenant screening might not be as critical.
But in a market like Detroit, where tenant quality can significantly impact your returns, having a hands-on approach makes a huge difference.
I like to think that my diligent screening process has played a key role in my success—maybe I’ve just been lucky, but I’ve had fantastic tenants over the years, and I attribute much of that to the fact that I was the one choosing them.
Once tenants are in place, managing relationships and maintaining open communication ensures fewer issues and longer tenancy periods.
Why I’m Moving to Property Management
So, with all these great benefits of self-managing my rentals why would I ever consider hiring a property manager?
Self-managing has been beneficial in many ways, but the challenges have started to outweigh the benefits—especially now that I’m out of state. Here’s why I’m making the switch.
Distance and Logistics
It has become increasingly difficult to manage my properties remotely.
Handling turnovers and placing new tenants is a huge logistical challenge, even with reliable help on the ground.
Coordinating maintenance, inspections, and repairs from across the country is it a bit easier, but only because I already have strong relationships with my tenants.
Even still, these things are starting to become more effort and stress than I’m willing to take on at this point.
Maintenance Oversight
Since I’m no longer physically seeing my properties as often, some deferred maintenance issues have gone unnoticed.
This is one of the biggest downsides of managing from afar—you don’t have the same level of oversight, and small problems can escalate if not caught early.
A property manager can help stay on top of these issues before they become major expenses.
Financial Readiness
At this stage in my investing journey, I feel that my portfolio is performing well enough to easily justify the cost of professional management.
The time and effort I’m spending trying to keep up with everything could be better spent on growing my portfolio and focusing on new opportunities.
Why I Wouldn’t Recommend Self-Managing from Out-of-State
Look, I get it. Managing your rentals yourself sounds appealing—especially when you’re looking at the potential cost savings.
And hey, I did it for years even after moving back to California.
But having been in the trenches, I can confidently say that managing rentals from out of state is a whole different ballgame, and not one I’d recommend for most investors.
The biggest challenge? Handling turnovers and placing tenants remotely.
Sure, you can have boots on the ground to help, but the reality is that it’s tough to oversee everything without physically being there.
Things move slower, little issues can snowball, and no matter how good your local contacts are, there’s always an element of “out of sight, out of mind” that creeps in.
When you’re local, you can spot potential red flags early, check in on your properties regularly, and make sure things are handled exactly the way you want. But when you’re remote, you’re relying on others to do that for you—and let’s be honest, no one cares about your property as much as you do.
Then there’s maintenance. Being out of state means you’re not swinging by your rentals to see what’s happening firsthand.
Over time, that can lead to deferred maintenance piling up without you even realizing it. It’s one thing to handle a leaky faucet or a minor repair when you’re local, but from a distance, those little things can quietly turn into bigger, more expensive issues.
I’ve found that not having eyes on my properties as often as I’d like has led to some surprises—nothing catastrophic, but enough to make me realize I needed a more proactive approach.
And let’s not forget tenant management. When you’re out of state, it’s harder to build the same level of rapport with tenants.
Communication gaps happen, and tenants may not feel as accountable when their landlord isn’t physically present. A good PM can bridge that gap and keep everything running smoothly without you having to step in every time there’s an issue.
At the end of the day, I’ve realized that while self-managing worked well for me in the early days, the stage I’m at now with my portfolio requires a different approach.
With a solid property management team in place, I can free up my time, avoid the stress of handling things remotely, and focus on the bigger picture—whether that’s growing my portfolio or enjoying more of my life outside of real estate.