If you’ve owned rental property for a while, odds are you’ve experienced a few frantic nights. Maybe you were up late handling tenant emergencies or stressing out over a seemingly endless cycle of tenant screening, rent collection, and keeping your books up to date.

As your portfolio grows and the pressure mounts, you might be wondering whether it’s time to call in reinforcements or if you should continue handling it all on your own.

On the one hand, hiring a professional manager promises to relieve some of the pressure by bringing in outside expertise and time-saving solutions. On the other hand, holding on to the reins keeps you in control and might save you money. As your portfolio expands, the question tends to become ever more present.

So, how do you decide what’s best for you and your properties?

This article analyzes the nitty-gritty of each option. Whether you’re leaning towards bringing in professional help or think you simply want to improve the way you self-manage, you’re sure to discover some actionable property management solutions.

Where are you now?

Start by taking an honest look at the size and scope of your rental property portfolio, both in terms of current footprint and where you hope to be in the near future.

As the number of properties increases, so does the complexity and time commitment involved in managing them efficiently. Balancing tenant needs, property maintenance, and legal requirements can become overwhelming if you get stretched too thin across too many assets.

Consider how much time and energy you currently dedicate to property management. Do you find juggling these daily tasks alongside your other responsibilities increasingly difficult? Are your operational and/or financial outcomes suffering as a result?

Then, ask whether you still have the expertise and comfort level needed to handle the variety of landlord responsibilities you face.

Here are a few additional factors to think about:

• The current size and growth rate of your rental property portfolio
• Time spent managing tenant relationships and property maintenance
• Access to resources and tools for efficient property management
• Your expertise in dealing with the responsibilities and legal obligations of being a landlord
• Personal comfort and stress levels associated with managing properties
• Availability of a support network or team to offer advice and assist with management tasks

Should you hire a property manager?

Feeling swamped by the unrelenting demands of managing your rental properties is not all that unusual. It can be a tricky balancing act. You’re not alone in wondering if now is the time to hand everything over to a professional.

Making the right decision for your business often hinges on understanding the advantages and drawbacks of each option:

Pros

• Property management expertise: A professional property manager brings specialized knowledge and experience to the table. A solid and experienced property manager should help ensure your properties are well-managed and comply with all legal requirements.
• Time savings: By delegating the day-to-day management tasks, you free up valuable time to focus on other priorities, such as expanding your rental property portfolio.
• Access to a network of professionals: Many property managers have an established network of reliable contractors and service providers. They can often provide better, more cost-effective maintenance and repair services, saving you money and improving your bottom line.
• Potential for more satisfied tenants: With dedicated attention to requests and quick response times, a good property manager can help you maintain higher levels of tenant satisfaction and retention.
• Reduced stress levels: Handing over management responsibilities can reduce the stress and pressure associated with overseeing multiple properties. More peace of mind allows you to focus on your long-term business goals.

Cons

• Cost considerations: Hiring a property manager involves additional expenses, such as leasing and monthly fees. These extra costs can impact your profitability, especially if your net income is already tight.
• Less control over daily operations: Entrusting your properties to a manager means giving up some control over the day-to-day decisions and operations. Delegation may not align with your management style.
• Potential for conflict of interests: Speaking of alignment, sometimes the priorities of a property manager may be misaligned to an owner’s priorities. Mismatched interests can lead to decisions that might not always benefit you.
• Risk of poor performance: Not all property managers will meet your expectations. Finding a reliable and effective one can be challenging, requiring thorough research and vetting.
• Communication challenges: Slow responses to your inquiries, lack of updates on property status, or miscommunication about tenant issues can be frustratingly inefficient.

How to keep self-managing while growing your portfolio

As your rental property portfolio grows, handling everything yourself can become overwhelming. However, if you’re not yet ready to hand things over to a property manager, there are some key steps you can take now to streamline and optimize your operations.

One strategy to maintain control while expanding your portfolio is to delegate specific tasks.

Consider leveraging the expertise of professionals for responsibilities like maintenance, accounting, or legal matters. Hiring a part-time handyman or accountant can relieve your workload, allowing you to focus on core management activities and strategic growth.

Another approach is to use technology to automate repetitive tasks. Tools for scheduling, rent collection, and communication can dramatically reduce the time spent on routine management.

Creating in-house systems for tenant screening, lease renewals, and maintenance requests can also help keep processes efficient and consistent. By documenting procedures and setting clear expectations with tenants, you can better handle common issues, reducing stress and time spent on problem-solving.

Stessa: The #1 app for landlords

Among many do-it-yourself tools and platforms, Stessa stands out as a top choice for landlords aiming to self-manage their rental properties.

Stessa, rated the #1 app for landlords (based on App Store ratings and total reviews as of Nov 2024), offers a perfect balance between self-management and the efficiency of a property manager. Users report an average savings of up to $4,000 and over 100 hours annually.*

Stessa’s comprehensive features, designed to simplify your responsibilities, help make the platform an invaluable asset for landlords committed to growing their portfolios while retaining managerial control. 

Accounting

Stessa’s automated accounting system eliminates the need for outdated spreadsheets by securely organizing your transactions, offering a clear and real-time view of your financial performance. With detailed reports like income statements and net cash flow, you can make informed property decisions efficiently, saving time and reducing errors.

Leasing

To streamline the leasing process, Stessa has tools that let you draft and manage leases effortlessly, offering access to over 60 legal templates and integrated eSigning through DocuSign. Unlimited document storage for easy retrieval simplifies the leasing process, freeing up time to focus on your portfolio’s growth.

Tenant screening

Stessa provides tenant screening with RentPrep’s integrated background and credit checks, reducing the risk of tenant default and safeguarding your portfolio from financial setbacks. With RentPrep screening, you can better select reliable tenants who pay on time and care for your property.

Landlord banking

You can open high-yield bank accounts for each property, with a range of APY on balances, depending on the Stessa plan you select. Accounts are directly connected to Stessa’s bookkeeping and reporting features, allowing you to track income and expenses effortlessly. 

Rent collection

Stessa automates rent collection through online payments. Services also include automated reminders and late fee mechanisms. Stessa’s rent collection feature works to provide you with timely payments without the hassle of manual follow-up. With automated rent collection, you maintain control while minimizing time spent on these recurring tasks.

When it might be time to hire a property manager

Stessa can significantly improve your ability to manage properties on your own. But, there may come a time when hiring a professional property management company is necessary.

Maybe you added multiple properties to your portfolio, and the workload has become overwhelming. Or you have a full-time job, and managing your rental property is becoming too much to handle on top of your other responsibilities.

Partnering with Mynd for property management services might be the right solution for you.

Mynd is a professional property management company with a tech-enabled platform and nationwide presence.

The company operates in 30+ markets across the U.S., making it easier to manage geographically diverse portfolios.

Mynd offers an all-in-one service that includes leasing, maintenance, financial reporting, and resident relations. The company manages everything through an intuitive online portal for seamless access.

With Mynd, you can focus on strategic growth without the daily hassles of property management.

Go here to learn more about Mynd and see if they offer management in your city.

* Stessa customer survey, July 2022