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Your Landlord Resource Podcast
Your Landlord Resource Podcast
Should You Self-Manage Your Rentals?
Managing rental properties comes with a big decision: should you handle everything yourself or hire a property manager?
In this episode, Stacie Casella and Kevin Kilroy share the real pros and cons of self-managing versus outsourcing — from cost savings and control to the realities of late-night calls, legal paperwork, and burnout. Together, they discuss how each option fits different lifestyles, investment goals, and seasons of life.
You’ll hear stories from their own experience managing a Sacramento 6-plex, a long-distance four-plex in Idaho, and everything in between — plus practical tips to help you make the best decision for your business.
Whether you’re a new landlord just starting out or an experienced investor scaling up, this episode will help you confidently decide which management style supports your goals.
🔗 Links & Resources Mentioned
Listen to Episode 39: 50+ Must-Ask Questions When Hiring a Property Manager, Pt.1
Listen to Episode 40: 50+ Must-Ask Questions When Hiring a Property Manager, Pt.2
Listen to Episode 79: Accounting Software Options for Real Estate Investors
Listen to Episode 84: Tenant Screening Software, What Landlords Need to Know
Listen to Episode 106: The Benefits of Being a Digital Landlord
Connect with Us:
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📧 Subscribe to our newsletter.
👆Click HERE for our FREE Landlord Forms and Doc’s
🤳Text Us: 650-489-4447. We love questions and love letters!
📩Email us at: Stacie@YourLandlordResource.com, Kevin@YourLandlordResource.com
➡️ Review the Podcast on Apple or on Spotify or YouTube
✔️Course Waitlist: From Marketing to Move In, Place Your Ideal Tenant
Flexibility is one of the perks of being a landlord. You know, you're the CEO of your rental property business. Think about what season of life that you're in right now, and does this season allow you the time to both manage your rentals and attend to your personal life in a healthy manner. Maybe you have school age kids who are really active and you and your spouse or your partner both work full-time jobs. Then self-managing might not be the best option because burnout is real, you guys. Our kids are grown and mostly flown, but life is busy as heck right now. And there are absolutely times when I wish I did not have to deal with the guy in unit three calling about his wash machine breaking down.
Speaker:Welcome to Your Landlord Resource podcast. Many moons ago when I started as a landlord, I was as green as it gets. I may have had my real estate license, but I lack confidence and the hands-on experience needed when it came to dealing with tenants, leases, maintenance, and bookkeeping after many failed attempts. Fast forward to today, Kevin and I have doubled our doors and created an organized. Professionally operated rental property business. Want to go from overwhelm to confident if you're an ambitious landlord or maybe one in the making. Join us as we provide strategies and teach actionable steps to help you reach your goals and the lifestyle you desire. All well building is streamlined and profitable rental property business. This is Your Landlord Resource Podcast.
Stacie:Hey everyone, welcome back to Your Landlord Resource. This is the show where we help rental property owners and self-managing landlords run their rental property business with confidence and professionalism. I'm Stacie Casella, and I'm here with Kevin Kilroy. And today we're tackling a question that almost every rental property owner asks themself at some point. And that is, should I manage my own rentals or should I hire a property manager?
Kevin:It is a big question and it's not a one size fits all answer. Because some days we absolutely love being self-managers. And then there's those days when we're up to our necks in maintenance requests, lease renewals, bookkeeping. We think, you know, maybe we should just hand this off to someone else.
Stacie:Yeah, I mean, that is, that is a hundred percent true. You know, you guys, we've been doing a lot of traveling lately and right before we left, when there's that big push to double check everything and get all the things done, I definitely have the, I don't wanna be having to do this stuff right now vibe. Most of it is overwhelm that I'm dealing with. You know, getting all caught up with the work stuff, getting the house together so we don't come home to a mess, gathering all the clothes and the things that we need for the vacation or the time that we're taken away.'Cause come the holidays, I check out from work. Come Thanksgiving, I usually, not this year, but I usually am completely focused on Christmas and the family and all the comings and goings to make the holidays special for everyone. And, and don't get me wrong, I'm still working, but I am not doing anything more than I absolutely have to.
Kevin:Well, I mean, the Christmas cookies alone take what, at least two to three days?
Stacie:Yes and that's with help from kid three and my mom. I have about two days of baking and making candy. One day to package it all up and drop it off to our friends and family.
Kevin:And you guys, if you know Stacie then you know that she is not just throwing these on a paper plate with some plastic wrap and a sticky bow.
Stacie:Not that there's anything wrong with that.
Kevin:These things are really nice little plates or platters with cookies and candy, all neatly presented in matching cupcake or candy cups. I mean, then they're wrapped in cellophane with a hand tied bow and a note wishing everyone a happy holiday. Our friends wait for this platter every year. And how many are you up to now?
Stacie:I think last year I did like 29 or 30, and they're all, they're all different sizes. And actually now we're mailing off about eight boxes to all the kids' friends who have moved away. So, I know it sounds crazy, but I love it. And I'm absolutely exhausted after Christmas day. But you guys, it's hands down my favorite time of year.
Kevin:Well, you're definitely making happy memories for a lot of people. Anyway, let's get back to today's subject, which is, well, essentially should you self-manage or use a property manager for your rental properties?
Stacie:Yeah, you know, there's a lot of gray areas here, and that's what we want to talk about today. You know, the pros, the cons, and the in-betweens of both sides. Our goal today isn't to convince you to do it one way or another, but to help you make an informed decision based on your particular situation.
Kevin:Because whether you self-manage or hire a property manager, the most important thing is understanding what's involved, the responsibilities, the trade-offs, and what actually fits your lifestyle.
Stacie:And we'll also share how this has looked for us from our early days of figuring everything out through trial and error, to now managing 10 units full time and still sometimes wondering if a more passive setup might be worth it. All right, little story time here. And I've told this one before, but when I first started managing rentals, I had zero experience. I was as green as it gets, and I will admit that I had someone to lean on and ask questions. But his experience was based outta the San Francisco Bay Area, which was fine for most landlord tenant laws, but he didn't know the Sacramento market, so I had to learn it. And the best way was to just jump right in and start. When the property closed, and mind you, this was back in 2005, so cell phones and texting were not really commonplace just yet. We had to rely on email and actually picking up the phone and calling people. But back in 2005, the property closed with all units full from the previous owner. And because I had no idea how to find or place a tenant, we were perfectly good with that. But, I wanted to introduce myself and give everyone my contact information and the very first door I knocked on it was the studio that is now currently our midterm rental. This guy answers and I don't know what I was expecting, but he was this huge bodybuilder guy. And I was so intimidated and he, he wasn't necessarily tall, but oh my God, he looked like he was four feet wide. He opened the door like he was ready to rip my head off just for knocking. And I must have had the widest eyes because I think he realized who I was and he was very nice. But holy crap, that first impression is engraved in my memory like it happened yesterday. I could not tell you anything about any of the other tenants that I met that day. And I'm sure they're all very nice and there was, and obviously they weren't intimidating. But yeah, that was my first experience as a landlord meeting a tenant. And from there I learned as I went. If someone had a maintenance issue, I called my brother who was in charge of handling that. Someone was moving out, you guys, I had no idea what to do. I essentially just asked him to clean, leave the key on the counter, lock and pull the door shut. And every step of the way, I had to learn how to be a landlord. And of course, I made mistakes. Some really huge ones.
Kevin:Oh, come on. Like what?
Stacie:I totally forgot to return someone's security deposit once it, it just slipped my mind. I didn't, don't even think about it. And then they threatened to report me to the city and sue me and it was lovely. But of course I just had to give'em the whole thing back, even if I didn't wanna, but whatever.
Kevin:Yeah, I mean, that's a big one. But, uh, you know, live and learn, right?
Stacie:Yeah, I did. I took a lot of courses and I went to a lot of breakfast meetings, for the rental housing association. A lot of times there were industry professionals giving talks. So like there would be lawyers who would tell stories of lawsuits that they dealt with and how landlords could avoid those. Contractors who did maintenance and how we could avoid leaks or, once there was a fire chief talking about rentals and they gave fire safety tips. They had insurance agents too. So it was actually a really cool time because it was when in-person meetups were popular and I think you paid like 25 bucks to attend.
Kevin:And you can't beat the free continental breakfast, can you?
Stacie:Yeah, except, here's the thing. Most of the meetings were in Sacramento and I had to drive two hours to get there. Most of the time they started at 7:30 AM so that I don't miss.
Kevin:And that can be a long drive sometimes. But for me, coming in a few years later, I saw the system Stacie had built from the ground up. And I had already been working in property management helping out a buddy who had a small real estate office and whose family owned a bunch of rentals in San Francisco. So I knew the professional side of it. But stepping into self-management with Stacie, I mean, it taught me a whole new perspective.
Stacie:And you guys, that's what's fun about today's conversation. We're gonna go through the pros and the cons of self-managing. So that you can see both sides and decide which direction feels right for your rental property business. So Kev, let's start with the upside, because there's a lot of reasons why landlords choose to manage their own rentals, especially when they're first starting out.
Kevin:Absolutely. Alright, the first one that comes to mind and the most landlords think about first cost savings. When you hire a property manager, you're typically paying about 8% to 12% of your monthly rent plus leasing fees, renewal fees, and sometimes even markups on repairs. That all adds up real fast. So let's say your unit rents for$2,000 a month and your manager charges 10%. That's$200 a month per unit. Now multiply that say by four units and that's just shy of$10,000 a year you'd be paying out in fees.
Stacie:Yeah, exactly. And you guys, that's just fees. That's not usually including placing a new tenant or managing a big improvement or what you have to pay for maintenance requests.
Kevin:$10,000. I mean, that could be a new roof or a nice cash cushion for emergencies. And by self-managing, you get to keep that money or reinvest it right back into your business. Plus today with the software options that are out there, you can do almost everything a property manager does. Rent collection, tenant screening, maintenance coordination, all online. Tools like Turbo Tenant, Rent Redi, Avail, and Door Loop, make it real easy to stay organized and professional without giving up that 10% of your rents.
Stacie:So the next big advantage is control, and this one is right up my alley'cause I can definitely say that I'm a control freak.
Kevin:Well, at least you can admit it.
Stacie:I can. I know, I like things done a certain way and there usually is a good reason behind that. Because I thrive on efficiency and I hate to waste time doing things half-assed. Because I know that I'm gonna have to come back later and spend more time on that task.
Kevin:Like how you don't like the way I load the dishwasher.
Stacie:Oh really? Come on, you know, I can fit way more dishes in there when I do it. I think you put those dishes in there all wonky, just so I'll get pissy and do it for you.
Kevin:Well, the secret's out. No, you guys really, Stacie has one of those minds where she can fit a ton of stuff into a very small space.
Stacie:I have what is called a spatial mind.
Kevin:Well, whatever it's called, I will never have to pack the car again. I know this has nothing to do with this episode, but I need to tell you a funny story about what just happened in Europe. We were leaving the hotel and heading back to the airport, and let's just say we had more bags going home than what we arrived with. I mean, the driver of the van is there, the bellmen are there, and Stacie is there with, what was it, 10 suitcases and five backpacks?
Stacie:Yeah, I think it was nine suitcases. But yeah, it was a lot.
Kevin:Alright, so I'll say that at first she was very good. I mean, she stood back. She let the guys try and pack the bags into the back of the van. Until she just couldn't stand it anymore. I mean, they would put in a few, then they'd pull them out and turn them a different way, then pulled them out again. Finally, she just jumped in there and was like, okay, let's start over. Grab that one. Put that over there. Grab this one, put it here. So on until the back of that band was packed and there was not one open space.
Stacie:It's like playing Tetris and not always, but most of the time I can fit everything in. And you guys, I was so shocked actually that I got it all in that I took a picture of it. And not because I needed proof, but because when we had the next transport van pick us up, I wanted to remember how those all fit in so we could just duplicate it again.
Kevin:Well, it was seriously impressive. And I know we tease you, but we love it because we don't have to drive with bags sitting across our laps.
Stacie:Yeah, I mean, it's just something I've always been able to do since a very young age. And it's also why I build all the furniture. My dad was an engineer and so super smart with numbers and manufacturing all their products. So you know, I probably picked it up from him. But getting back to the subject at hand, yes, I'm a control freak and I like things done a certain way. When you self-manage your rentals, you're the one making every decision. You decide who rents your property, how repairs are handled, what your lease says, even what type of communication that you're gonna have with those tenants.
Kevin:And that's a big deal because when you hire a property manager, you're trusting someone else to represent your business and handle situations the way they see fit. I mean, sometimes it works great, but sometimes it doesn't line up with your standards or your goals.
Stacie:Exactly. And often they will just use the same business model that they use for every single client. Which I have to say I appreciate the efficiency, but every rental is different. You cannot operate a single family home like you do a sixplex. And all owners have different mindsets and goals. Some are focused on money. Some are making sure that they're not gonna get sued. And I love that we can use our own comprehensive lease, not a generic one. We customize our terms for our properties, our market, and what our expectations are.
Kevin:And when maintenance issues do come up, we're not waiting for approval chains or dealing with markups. We know our contractors and we know pretty much what things should cost.
Stacie:Plus, when you are in control, you can respond to an issue faster and make more informed choices.
Kevin:Absolutely right. Now this next one is huge and that's building your own team of vendors and contractors.
Stacie:Yeah, when you're the decision maker, you're not stuck with whoever your property manager uses. You get to handpick people that you trust. Your plumbers, your electricians, your landscapers. And those relationships become part of your business foundation. You also get to train them on how you like things done. You know, they're gonna learn where you're willing to cut corners and where you're not.
Kevin:And if they really are team players they will advise you on work that needs to be done now or if it's something that can wait for a little bit. If you all want to hear about what we have to say about building your teams, we did a two part podcast series on the importance of building your rental property team and your office operations and business teams. Those are episodes 15 and 16, which you can listen to at yourlandlordresource.com episode 15., We will put a link in the show notes as well. But it's not just about trust either it's about cost transparency. You know the actual price for a job, not the inflated one that sometimes gets passed along through a management company. So for instance, in Idaho, the previous agreement we had with the property manager there was that they could handle any maintenance request that was less than$500. So we would not know there was an issue until the next month, when the reports would come through and see what maintenance was approved and performed on our behalf. Well, we had a tenant who was complaining about their toilet either running or leaking, or the handle was broke or something. But the next thing I know they just called the plumber who said it was easier just to replace the whole toilet. And we were like, what the hell are you talking about? I think it was the sealed between the back of the toilet and the toilet bowl. And for reference, that part costs less than 10 bucks. I mean, I get the labor is a pain and probably would take an hour, but I will say it's not something we needed a licensed plumber to handle. A handyman could have taken care of this at half the cost for us.. You know what our contract with a property manager says? That whatever the cost is of someone they call out on our behalf to do a repair, they get 10% to manage that work. So if it's$400 to put in a new toilet, the property manager gets 40 bucks. So we pay$440, not$400. Chew on that for a minute. This is the same plumber that advised us to replace all four water heaters when one was leaking,'cause they were all ready to go. Now, in their defense, we knew that, but we didn't realize we were getting charged 10% more for the job because the PM called them.
Stacie:Needless to say, after those experiences, we pulled kid two in to handle as much maintenance as he could on our behalf. So now the property manager emails us all. We talk to kid two about it and decide how to move forward from there. We can use our own vendors, we will. All right, let's move on. One other benefit that I mentioned earlier was that when you manage your own properties you become an expert in your market. You know what the rents are going for, what tenants want in a rental, and what's happening in your neighborhood.
Kevin:Right. And that's another huge advantage. I mean, we've been able to keep our units competitive because we're plugged into what's really happening locally. We know where new units are being built and what they're renting for, as well as what amenities renters in our area are looking for.
Stacie:Yeah. And we also make sure that we're up to date on state and local landlord laws. Property managers have to juggle dozens of clients, but we can focus on our portfolio so we're able to stay sharp on it.
Kevin:And that knowledge helps you make better business decisions. You're not relying on someone else's interpretation of the rules, you know them yourself.
Stacie:Yeah. And, here, we'll be honest with you. You know, being licensed Realtors does give us a leg up on knowing the law. And another benefit, and one I think that we both take pride in is the relationship that we build with our tenants.
Kevin:Absolutely. When tenants know their landlord personally, and they see that we care about the property, it creates trust. And that trust usually leads to longer tendencies and fewer problems. Now, I will say that a few years ago, we would advise landlords to not let their tenants know they are the owners. That if they knew you were the ones who makes the final decision, especially when it comes to placing tenants and going through the showings and application process, then they, the tenant or applicant, might feel they could manipulate the owner into going against their criteria or business strategy. A common one for this is pets. Now we have a no pet policy in Sacramento. When people thought we were the managers, we could essentially blame it on the quote unquote owners that pets were not allowed. And at the time that was true. Stacie had a very small stake in the ownership, and where the family who owned it had very little say in the management policies, we would say the owners do not allow pets. Now that we, well technically Stacie, own the sixples, it's a little harder to get away with that. But we do have a much stronger, I guess I should say firmer stance on maintaining our business model. And if someone questions our policy or tries to get us to change our mind, we have the confidence to shut down the conversation right there.
Stacie:Yeah. And you know, you guys do you. If you wanna remain anonymous, there's no reason at all you need to disclose that you're the owner. I mean, unless you hold the property in your personal name and you don't operate under a DBA. And that stands for doing business as, as in using a business name like you would with an LLC. They could just look at who the owner is. But it's doubtful they would, unless there's a legal issue at hand. I think the decision of whether you tell your tenants you're the owner has a lot to do with your confidence. If you're confident in your policy and you're confident that you're able to stand your ground, if you get someone who tries to manipulate you, and if you have not, you will. If you're a hundred percent certain in your ability to manage the property without someone thinking that they can pull one over on you, then tell them from the get go. And here's the thing, you don't have to tell anyone anything. When you show a property unless they ask, are you the owner? Do not volunteer that information. Just go in, show the unit, let'em know the amenities and all the great things about living there and what the costs are and call it a day. Get in the habit of selling the unit, not yourself. All right, any who. Kind of went off on a tangent there. For us, we really pride ourselves on managing our units with care. We do not take advantage of our tenants. We keep our units and our property clean and kept up. We communicate well and we treat everyone with the respect that they deserve.
Kevin:Tenants often tell us they appreciate how responsive we are. And because we stay on top of preventative maintenance, they rarely have emergencies. And like Stacie mentioned earlier, we make a very sincere effort to communicate clearly with our tenants. We always give them ample notice when we are gonna do inspections or need to access their unit. We offer them incentives for renewals at minimum 60 days before their end of their lease. We let them know when we will be unavailable and who to contact for any maintenance issues. That's not always the case with big management companies. Sometimes property managers can be reactive, just responding to issues instead of preventing them. They wait for the tenant to call with a problem or move out before getting into a unit and doing a proper inspection to see what work needs to be done. If there has been an undetected leak, that could lead to a much more expensive repair than if they knew about it months earlier. I will say though, that our Idaho property manager uses a company to do their inspections and they are very thorough. But many PMs don't use a professional inspection service and just send one of their employees out with a checklist.
Stacie:Yeah, I, I do like that inspection service that they use. Of course, until they find issues, which this last time, they found multiple problems that we had to address. But that's okay. That's what we want. We wanna know what's wrong before it becomes a big problem. Another perk is freedom with technology. You get to choose your own software and the tools instead of being locked into whatever system that your property manager uses.
Kevin:Right. Maybe you prefer to use Smart Move for screening, or EZ Landlord Forms for leases. When you self-manage, you can use whatever works best for you.
Stacie:And switching platforms or trying new tools is really easy now. I like that we can adapt as technology improves instead of being stuck with a company's outdated process. And you guys, we're gonna link all the software in the episodes that we discuss here today in the show notes. We've done an episode on landlord software, I think it was, hold on episode. Oh my God, it seems like it was forever ago. I think it was just a couple months ago, episode 1 0 6, about the benefits of being a digital landlord. That was a good one. As with all these episodes, you can find them at yourlandlordresource.com episode, and then the number that we note. So in this case, you wanna go to your landlord resource.com/episode 1 0 6.
Kevin:We did do an episode on tenant screening apps as well. That one was episode 84 and an episode on accounting software that's available for self-managing landlords, episode 79. Again, all of those will be in the show notes with a link to click and get right to'em. But anyway, I think the final pro, and maybe the one that sums it all up is that self-management lets us combine professionalism with personal care.
Stacie:Oh, for sure. Because both of us have backgrounds in real estate and property management, we can run our rentals like pros, but still offer that hands-on personal experience that tenants appreciate with a smaller owner. No one likes being a number and feeling like they're not appreciated.
Kevin:Self-managing really is the best of both worlds when it's done right.
Stacie:Yeah, of course. And and the key to your sentence there is when it's done right. As with anything in business, the good comes with some challenges.
Kevin:Yeah. I mean, it's not all rainbows and cash flow.
Stacie:It definitely is not. So, all right you guys, let's talk about the parts that can make you wanna throw in the towel, those downsides of self-managing. And this one's obvious, but it's definitely real. When you self-manage, you're the main point of contact. If something happens at 10:00 PM or 2:00 AM or 5:00 AM it's your phone that rings.
Kevin:Yeah. I mean, we've got our share of late night and early morning emergencies, and not all of them are actual emergencies. Sometimes it's just a trip breaker or a pilot light.
Stacie:Yeah. Or dead batteries.
Kevin:We had a landlord tell us the other day that at 5:30 AM the tenant woke and was getting ready for work when they discovered a pretty bad leak under their kitchen sink., Luckily they had taught the tenant how to turn the water off, and they did, and then cleaned it all up. The tenant did wait until 7:30 to call the landlord, but still not a fun way to start your day.
Stacie:Yeah, we actually have a, a family member who also owns some rentals and recently their tenant got mugged and they stole their keys, I guess, or something like that, and they got locked outta their unit. 2:00 AM this guy calls the landlord because he is locked out of his unit'cause he wanted to get access. And do you know that that landlord actually got outta bed and went to the house to let him in because he felt really bad that the guy had been mugged. So with all that said, I really do think that the key is having systems. You know, like the owner that Kevin was talking about, teaching the tenant how to turn off the water to that sink.
Kevin:Absolutely. Things like a dedicated phone line, a clear maintenance request process, and reliable vendors can make self-managing much easier.
Stacie:And another thing we know firsthand is that self-managing works beautifully when you have just a few units. But as your portfolio grows, it can get really tricky.
Kevin:Yeah, there's usually a limit to how much you can handle personally. Without help, it's easy to hit that ceiling where the time demands outweigh the financial benefits.
Stacie:But if you build the right systems, automation for rent collection, scheduled inspection, good vendors, all that, you can manage more units than you actually think.
Kevin:Still, there's no denying that managing 10 doors yourself is a whole different beast than managing two.
Stacie:Yeah, it's true. But think about, okay, we have people that we know, we're gonna call him Bruce. And we kid you not Bruce owns around 60 doors of which he manages all himself. No property manager. I will say he does have someone in real estate who does his leases, and he has one or two fulltime guys who handle maintenance for him. But he has his hand on every single door. They are all owned within a 25 mile radius of his home. And we will say he's doing very well for himself. But he runs his butt off all day every day. Which leads me to the next con, which self-managing can sometimes be a time suck. Cause let's be honest, this job doesn't stop. When you self-manage it's like having another full-time job. So that's kind of tough, especially if you already work one.
Kevin:That's why the decision really depends on your season of life. If you're already stretched thin, hiring a manager might be the better route for your peace of mind.
Stacie:We do this full-time now, but we remember what it was like juggling everything, and it's a lot.
Kevin:I think another thing that can happen unintentionally is that when you manage your own properties, it's easy to get emotionally attached to the building, to the tenants, I mean to every little decision.
Stacie:Yeah. And those emotions, they can cloud your judgment. Maybe you might hesitate to raise rent or delay enforcing lease terms because you feel bad. Or maybe you're afraid to raise those rents'cause you don't want them to move out,'cause then you're gonna have to deal with turning a unit and finding a new tenant. Or like we've done, you over improve the property with the hopes of more rent and it makes no difference on your bottom line at all. You know, we've been there for all those.
Kevin:Exactly. Treating it like a business with clear policies and boundaries is what keeps things running smoothly.
Stacie:Yeah. It does help to remember that being firm is actually part of being fair. You know, tenant relationships can be very tricky. Having a direct relationship with your tenants is great until it's not.
Kevin:Right again. I mean, it can be tough to enforce rules or handle conflicts when you've built that friendly connection.
Stacie:You guys, the key is balance. You can be approachable without being a pushover. And written policies go a really long way. So a few years ago we had a tenant who always was late on their rent and he would pay the late fees every single month. And you guys, it was like a few hundred dollars in fees. So Kevin and I had a dilemma. Do we ask him to move out or do we let him stay and keep earning that additional income every month? And you know, we pondered just long enough to the point of when we decided to be more firm with him, he said he was gonna move out with his girlfriend. And you know, we were okay with that. We raise the rent with the next incoming tenant to help compensate that additional income that, you know, honestly we'd gotten used to. And now we don't wait for the late fees. On day three if that rent has not been received we'll send a friendly reminder. Day five, a not so friendly reminder. And day seven, a demand for payment and a pay or quit notice. And for us, late rent really only happens once. Most of the time it's an oversight or maybe there's something personal going on in their lives, and usually by the next month they're back on track. And this ties back to the whole telling'em you're the owner or not. And if you have the confidence in yourself to be firm when it's necessary. To put the emotions aside and treat your rental properties like the business that they are. You know, it's not always easy to do that.
Kevin:Another challenge is legal and administrative work. You know, keeping up with the never ending paperwork and the laws that always are changing or being updated.
Stacie:Yeah, for sure. And, and leases is a huge part of that. Especially here in California where many large cities have their own stricter landlord tenant laws than the state. And then there's things like fair housing, security deposit dates and procedures, local ordinances, and and require disclosures. All of those can trip you up if you're not careful.
Kevin:That's where education and resources come in. Joining your local rental housing association is one thing we highly recommend. Also, using compliant lease templates from EZ Landlord Forms or using platforms that flag compliance reminders, which can save you from big mistakes.
Stacie:Yep. There's not a lot of them to do that. I think Avail and Buildium are the two that come to mind off the top of my head. But it's not impossible to keep up with landlord tenant laws. But it does take a commitment to keep learning'em.
Kevin:So yeah, there are plenty of upsides to self-managing, but there are some real challenges too.
Stacie:And this is why we always say it's not about what's right or wrong, it's about what's right for you.
Kevin:Coming up next, we'll talk about how to decide which path fits your lifestyle and goals, whether that's rolling up your sleeves or handing off the keys.
Stacie:Now that we've covered the good, the bad, and the late night maintenance calls, let's talk about how to decide which option actually fits you.
Kevin:Because as we said before, this isn't a black and white choice. It depends on your time, your personality, your goals. Even how hands-on you wanna be.
Stacie:Yeah, exactly. So let's walk through some questions that can help you figure it out. First, you need to honestly ask yourself how much time do you realistically have? If you're already working full-time, have a family, or you travel a lot, self-managing your rentals might stretch you thin. You can still do it, but you'll need really good systems in place and strong boundaries for when you're off the clock.
Kevin:On the flip side, if you enjoy being involved and have some flexibility in your schedule, self-management can actually be rewarding. You're building skills that can save you money and teach you the business from the inside out. Second, how close do you live to your property? Because distance matters, believe us. If you live nearby, it's easier to keep an eye on things, show units, and respond to issues.
Stacie:But if your rentals hours away, like for us, the sixplex in Sacramento is almost a two hour drive away, and then we have to drive that back home afterwards. Or maybe your rental is in another state, you know, then a property manager might be worth every penny. And that's actually the case with our Idaho property.
Kevin:Right. Our fourplex outside Boise is professionally managed because the HOA requires it. And even though we're experienced, we rely on that manager for local logistics and tenant placement. Now, I will say that when we actually bought that property, we dropped the ball big time.
Stacie:As did our Realtor who represented us.
Kevin:Right. And he admits that, so I don't wanna seem like he's a scumbag. He really actually feels pretty bad about it.. We all fail to thoroughly read the HOA bylaws. We've mentioned this before, but the Idaho property was a 1031 exchange from some land I owned in North Dakota. And if you've ever done a 1031 exchange, they can be very stressful. We did a podcast all about our experience, so go back and check out episode 12 if you wanna know more about it. But there are time constraints you must follow, and this Idaho property was the second property we had put an offer in on. So our time limit, I believe it's 45 days, was ticking away fast. We were so concerned with the health of the actual structure and if the financial side penciled out that we did not read in the bylaws that all owners in the community have to use the same property manager. When we found this out, we were on our way out there to walk the property ourselves, and I think we had like 10 days or something like that before we closed. So we were like, well, okay, let's go and meet them and talk to them and make sure we're good with their practices and we can work with them. I won't get into it, but the first meeting did not go well. The property manager kind of made us feel like we had no say in how the property was managed. We could not alter the lease. We could not contact our tenants. Our tenants, by the way. And you guys we wanted to send them a letter to introduce ourselves. The property manager had to review it. And the copy that came back was hacked up with most of the personal get to know us stuff removed and only the essential info remained. And this was all from the owner of the company way back in 2022. Things have definitely improved since then, but it's still not perfect.
Stacie:And I'm, I'm kind of being silent here because the situation really still makes my blood boil. Not our rep, she's amazing. But the point is, sometimes hiring a manager isn't even optional, but yet when it is, your distance and availability really matters. So the third question, what's your comfort level with the legal and financial responsibilities? Being a self-manager means you're the one handling lease agreements, security deposits, inspections, and compliance with housing laws.
Kevin:If that sounds intimidating, remember you can learn, but it does take effort. A good way to bridge the gap is by using tools that guide you through those steps.
Stacie:Yeah, platforms like EZ Landlord Forms or Turbo Tenant and Avail, I believe they have built in reminders and templates that make it almost foolproof to staying compliant.
Kevin:But if the paperwork and regulations make you anxious, you know that's okay. Hiring a manager to handle those details can save you stress and sometimes legal risk. The fourth thing to ask yourself, do you want your rental to be active or passive income?
Stacie:All right, so that's a big one. And this is where you have to ask yourself, do I wanna be hands on or do I just wanna get a check to show up every month? I will clarify that with, owning rentals is not passive, regardless of if you manage the unit yourself or if you have a property manager. You still have a lot of decisions that you have to make and things to handle. No matter what, this is not a set it and forget it investment.
Kevin:Right. You just need to know if you love the idea of managing relationships, maintaining properties, and here's the most important element, keeping control, then self-management fits that active investor mindset.
Stacie:But if you want your rentals not to be so hands-on, you know, you put the money in, you get returns out and you don't wanna deal with that day-to-day, then a property manager might align better with your goal.
Kevin:Yeah, neither is wrong, they're just two different strategies.
Stacie:All right, next question. You have to ask yourself, are you willing to keep learning? Because laws change, technology changes, tenant expectations change. And if you're willing to keep learning and improving then, you know you probably could handle self-management.
Kevin:And I think that's been our secret sauce, constant education. Even after years of doing this, we still attend workshops, talk to other investors, and test new systems.
Stacie:Yeah, for sure. The landlords who struggle most are the ones who are trying to wing it without learning the business side.
Kevin:And that's where some new landlords benefit from hiring a manager. It's a way to learn through observation before jumping into self-management later.
Stacie:Yeah, so when you think of your own situation, be honest with yourself. There's no perfect choice. Just what fits your lifestyle and your goals right now.
Kevin:And remember this, it doesn't have to be forever. You can start self-managing and later decide to hire a property manager or do the reverse.
Stacie:Yeah, exactly. Flexibility is one of the perks of being a landlord. You know, you're the CEO of your rental property business. Think about what season of life that you're in right now, and does this season allow you the time to both manage your rentals and attend to your personal life in a healthy manner. Maybe you have school age kids who are really active and you and your spouse or your partner both work full-time jobs. Then self-managing might not be the best option because burnout is real, you guys. Our kids are grown and mostly flown, but life is busy as heck right now. And there are absolutely times when I wish I did not have to deal with the guy in unit three calling about his wash machine breaking down. Or the midterm rental tenant who, when he got to the unit, the TV was not turning on. And after we ran through all the troubleshooting, found that the TV was dead, a fricking brand new TV. The last tenant was in there six months. Never said a word that it wasn't working. But we were swamped and I couldn't get there to handle it so we had to pay our tech guy to go and replace it. We lost a half a month's rent on that one phone call.
Kevin:Yeah, I mean that one. That one stung. Alright, so let's flip the script for a minute. There are plenty of times when hiring a property manager just makes sense.
Stacie:Yeah, sometimes the peace of mind is worth every penny. So let's run through a couple scenarios. What if you're scaling fast? You know you're growing quickly, or you have multiple properties in different locations. Managing everything yourself can burn you out.
Kevin:That's absolutely when a property manager becomes an integral team member, and dare I say like a business partner. Someone to handle daily operations so you can focus on strategy and expansion.
Stacie:Just remember, not all managers are created equal. And you guys, this is why we did a two-part series on this. Episodes 39 and 40. Those are our 50 Plus Must Ask Questions When You're Hiring a Property Manager.
Kevin:In those episodes, we walk you through exactly what to ask before signing a management agreement. Everything from communication expectations to hidden fees. Definitely worth checking out if you're exploring the route of hiring a property manager Or if you're investing long distance, if your property's in another city or state, having a local expert is essential.
Stacie:Yeah. And even if it costs more, it can prevent costly mistakes, like letting small maintenance issues go unseen or missing legal updates in a different market.
Kevin:We've seen how helpful it can be, especially in places where local ordinances change often.
Stacie:Another reason to use a property manager is maybe you don't have the time or interest in self-managing. Some landlords simply don't want another job, and that's perfectly fine. If managing feels like a chore, it's gonna show in your responsiveness and your tenant relationships.
Kevin:Honestly, if it starts taking time away from family or your primary work, hiring a property manager can give you that balance back.
Stacie:Yeah, and that doesn't mean you're not a good landlord. It just means that you're running your business in a way that supports your lifestyle.
Kevin:Or think about if you feel like you need expert help. Certain properties or tenant situations can get complicated. Like subsidized housing programs, large multi-family buildings, or properties with heavy maintenance.
Stacie:Yeah. So you guys, that's where having an experienced manager, someone who knows those systems, can save you from major headaches.
Kevin:And again, it doesn't have to be all or nothing. You can hire a manager just for tenant placement or just for maintenance coordination. Yeah
Stacie:exactly. You can customize what you outsource, which is a nice middle ground for a lot of landlords. Maybe you want to, or you need to step away temporarily. There may come a time when you just need a break. Maybe you're traveling for a few months, or you're caring for a family member. You know, life happens. I was lucky that when my brother was ill and I was caring for him, that Kevin was able to pick up the load. He was able to help me with the kids and the home and the rentals, you know, and even my brother's house as well.
Kevin:But you know, if you don't have an awesome Kevin in your life to help pick up the slack.
Stacie:Oh wow, Kev.
Kevin:No, really if you don't have a partner that can and will support you or pick up the slack when it's needed, that's where bringing in a manager for a season can help things run smoothly until you're ready to take the reins back.
Stacie:Yeah, for sure. So don't think of it as an either or. Think of it as a tool that you can use when it fits your needs.
Kevin:Alright, so where does that leave us? Self-managing versus hiring a property manager. It's really all about trade-offs.
Stacie:Yeah, exactly. And self-management gives you control. It gives you knowledge. It gives you higher profits But it takes time, energy, and ongoing commitment.
Kevin:Hiring a manager gives you freedom, convenience, and expertise. But it comes with a cost and less control.
Stacie:Yeah, and you guys, what works for us today might not be what works for you or even what works for us in a few years. And that's the beauty of real estate. It grows and it changes with your life.
Kevin:If you do decide to self-manage, invest in systems early. Software like Turbo Tenant, Rent Redi, Door Loop, or Avail can make you feel like a professional property manager right outta the gate.
Stacie:Yeah, and, and those ones are set up for, for newer landlords that don't have a lot of units, they're perfect, for new investors. And if you're leaning towards hiring help, definitely go listen to episodes 39 and 40 where we walk you through what to ask and what to watch out for before you sign any contracts.
Kevin:Either way, you're still running a business. Whether you're hands on or hands off, your mindset is a landlord is what makes the difference.
Stacie:And that's all we want for every listener. We want you to feel confident and informed and in control of your rental property business, no matter which path you choose. All right, you guys, that's our episode for today and always thank you for listening and being part of this community of landlords who are learning and growing together. If you found this episode helpful, make sure you follow Your Landlord Resource wherever you listen. And check the show notes for links to all the episodes and the software that we mention here today.
Kevin:There's also links to sign up for our free biweekly newsletter. We give an update on how we have handled landlord issues and links to informative landlord articles to help you on this journey. So give it a try and if you don't like it, you can always unsubscribe.
Stacie:Yep. We'll be back with an episode in another couple weeks. Until then, take care and remember, you've got this landlords.
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