Self-Managing vs Hiring a Property Manager

Should you manage your own rental or hire a property manager? If you’re a real estate investor, one of the biggest decisions you’ll make is how your properties are managed. For many, it comes down to self-managing vs hiring a property manager.

There’s no one-size-fits-all answer. What works for one real estate investor might be a headache for another. In this article, we break down the pros and cons of each option to help you decide what’s best for your portfolio—and your lifestyle.

Self-Managing: Hands-On, Cost-Effective, but Time-Consuming

Self-management can offer both savings and control, but it also demands your time and attention.

Why some real estate investors choose to self-manage:

• Cost savings: Avoiding management fees means more rental income in your pocket.
• Full control: Every decision is yours, from screening tenants to scheduling repairs.
• Closer tenant relationship: Direct communication can lead to stronger tenant retention.
• Better visibility: Gain firsthand insight into how your property is performing, because no one will care about it as much as you do.

But it’s not without drawbacks.

The trade-offs:

• Time commitment: Dealing with tenants, maintenance, and bookkeeping adds up.
• Legal risk: Staying current on landlord-tenant laws, fair housing rules, and eviction procedures is critical, and not always simple.
  • Ontario Landlords: Landlord and Tenant Board – Rights and Responsibilities
    This site outlines key landlord obligations, eviction procedures, and tenant rights in Ontario. If you’re new to landlord-tenant laws, read our article, Frequently Asked Questions About Landlord-Tenant Laws in Ontario.
  • Alberta Landlords: Residential Tenancies Act (RTA)
    This is a comprehensive resource for understanding Alberta’s lease agreements, maintenance standards, and eviction protocols.
• Emotional labour: Handling late rent or tenant disputes personally can wear on you.
• Limits to scalability: Managing a few units may be manageable, but as you grow, so does the complexity.

Hiring a Property Manager: Convenience, Expertise, and Room to Scale

On the other hand, working with a property manager can offer serious peace of mind, especially as your portfolio expands.

Why some real estate investors choose to hire a property manager:

• More free time: Day-to-day operations are handled for you, freeing up your time.
• Professional know-how: Experienced managers bring deep knowledge of the rental market and local laws.
• Streamlined maintenance: Many have vendor relationships that mean faster, more reliable service.
• Growth-friendly: You can expand your portfolio without being overwhelmed by the workload. In most cases, you’ll still be consulted on key decisions, like tenant selection and rental rates, so you can stay in control while freeing up your time.
• Peace of mind from afar: For long-distance real estate investors, having a local expert on the ground ensures your property is well cared for, even when you’re not nearby.

Still, outsourcing isn’t always perfect.

Things to consider:

• Management fees: Expect to pay a percentage of monthly rent, which is typically between 8% and 12%, plus potential leasing or maintenance coordination fees.
• Less direct control: You’ll need to be comfortable trusting someone else with decisions.
• Communication gaps: Adding a middleman can create misunderstandings or delays.
• Quality varies: A skilled manager adds value, but a poor one can hurt your bottom line. Careful vetting is essential.

Which is right for you?

Ask yourself the following questions:

• Do I want this to be a passive investment, or am I prepared to take a more active role?
• Do I have the time and knowledge to manage this property?
• Is the property close by, or will distance be a challenge?
• Am I planning to scale my portfolio?
• Do I enjoy managing tenants and handling day-to-day issues?

Some real estate investors start by managing their first property, then hire a manager as they grow. Others prefer to outsource right from the start to stay hands-off.

Final Thoughts: Choose the Best Strategy for Your Investment

When it comes to self-managing vs hiring a property manager, the best option depends on your time, risk tolerance, and long-term goals. Consider your priorities and where you want to spend your energy.

Looking to grow your real estate portfolio? 

We offer flexible short-term mortgage solutions designed to support real estate investors like you. Contact us today to learn how we can support your investment journey.

For Alberta inquiries, contact Kaelan Nelson.
Email: kaelan@chmic.ca
Cell: 587-585-4571
Office Phone: 403-278-0249
Book a meeting here.

For Ontario inquiries, contact Katarina Jarossy and Dan Werner.

Based in the GTA?
Email: katarina.jarossy@chmic.ca
Cell: 416-799-2553
Office Phone: 1-888-752-4642
Book a meeting here.

Anywhere else in Ontario:
Email: dan.werner@chmic.ca
Cell: 416-316-5336
Office Phone: 1-888-752-4642
Book a meeting here.

Have an experience or insights you’d like to share?
We’re always looking to learn from real estate investors. We’d love to hear from you if you have tips, lessons learned, or insights that could benefit others exploring self-management or third-party management. Drop us a line at info@chmic.ca.