Property management companies typically charge 8–12% of monthly rent, plus additional fees. On a $1,500/month rental, that is $120–$180/month — or $1,440–$2,160 per year. But the percentage is just the starting point.
Common additional fees most landlords do not anticipate:
Total cost for a single $1,500/month rental with one tenant turnover per year can easily exceed $4,000–$5,000 annually. For a landlord with 3–5 units, that is $12,000–$25,000 per year.
A good property manager handles:
The question is whether you need — and can afford — all of this as a package, or whether technology can replace the parts you need while you handle the rest.
This is the most straightforward argument. Every dollar you pay a property manager comes directly out of your cash flow. On a property with $200/month net cash flow after mortgage and expenses, paying $150/month to a property manager leaves you with $50/month — a 75% reduction in profit. For many small landlords, property management fees eliminate the financial reason for owning the property in the first place.
Property managers handle dozens or hundreds of units. Your three-unit portfolio is not their priority. Common complaints from landlords who use management companies include: slow response to maintenance requests, poor tenant screening leading to problematic tenants, lack of transparency on repair costs, and minimal communication about property issues.
The primary argument for hiring a property manager used to be: "I do not have the tools or expertise to handle everything myself." That argument has weakened significantly. Modern property management software handles:
If you own rental property in a different city or state, self-management becomes significantly harder. Maintenance coordination, inspections, and emergency responses require physical presence or a trusted local contact. If you cannot be at the property within a reasonable timeframe, a local manager makes sense.
Self-management works well for 1–10 units. Beyond that, the time commitment becomes equivalent to a part-time or full-time job. If you own 15+ units and have another full-time career, a property manager (or on-site manager for larger properties) may be necessary.
Landlording involves dealing with people — sometimes difficult people in stressful situations. Late-night maintenance emergencies, rent collection conversations, and lease violation discussions are part of the job. If you genuinely do not want to interact with tenants, a property manager acts as a buffer.
Some markets have exceptionally complex landlord-tenant regulations (New York City, San Francisco, and other rent-controlled jurisdictions). If you are not willing to learn and stay current on these regulations, a property manager with local expertise provides compliance protection.
The best option for most landlords with 1–10 units is not "DIY with spreadsheets" or "hire a property manager." It is self-management with purpose-built software that automates the compliance, collection, and communication tasks that used to require a middleman.
Here is what that looks like in practice:
Time commitment: roughly 2–5 hours per month for 1–5 units, depending on maintenance volume. Compare that to 0 hours with a property manager — but you keep an extra $150–$500/month per property.
Everything a property manager does — minus the 10% cut. AI lease drafting, $0 rent collection, maintenance tracking, and 50-state legal compliance.
Start Free — 1 Unit Forever →Self-manage with software if:
Hire a property manager if:
AI-powered lease drafting, $0 rent collection, and 50-state legal compliance. Free for your first unit.