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Are you a landlord struggling with property management? Deciding whether to hire a property manager to manage your rental property might be a challenging task. You may not have experience managing a rental property on your own. Perhaps you had a property manager before, but you didn’t have a good experience, and now you are wondering whether hiring a property management company is worth it for you or not.
There are mixed reviews of landlords’ experiences with hiring a rental property management company in OKC. In this article, I’ll guide you through the process, elaborating on the property management pros and cons to help you make the perfect decision for your investment.
What Does Property Management Company Do: Their Roles & Responsibilities
Property Management Companies deal directly with prospects and tenants, saving you time and stress over renting out your property, collecting rent, managing problems with maintenance and repair issues, responding to complaints from tenants, and even eviction. Plus, with its know-how and experience, a good property manager handles your property, giving you the peace of mind that comes with knowing that your real estate investment is in capable hands.
For more detailed insights, check out my previous blog post on What Does a Property Manager Do, which outlines the various activities and responsibilities of property managers in greater depth.
DIY Landlord vs. Professional Management: A Side-by-Side Comparison
Deciding between managing the property yourself or hiring a professional often comes down to how much you value your time versus your money. Here is a breakdown of the differences:
| Feature | Self-Managing (DIY) | Professional Property Manager |
| Tenant Screening | Limited to basic credit reports and gut feeling. | Access to nationwide criminal, eviction, and credit databases + fraud detection. |
| After-Hours Calls | You handle 2 AM emergencies and holiday repair calls. | A 24/7 team handles all emergencies; you are never disturbed. |
| Legal Liability | You are personally liable for fair Housing violations or illegal eviction practices. | The company acts as a buffer, ensuring compliance with local and federal laws. |
| Maintenance Costs | You pay retail prices for contractors. | Access to volume discounts and vetted vendors who prioritize the PM’s work. |
| Vacancy Speed | Limited by your availability to show the home (evenings/weekends). | Dedicated leasing agents show homes daily to fill vacancies faster. |
| Owner Anonymity | Tenants know where you live and have your personal cell number. | Your identity is shielded; the PM is the sole point of contact. |
Advantages and Disadvantages of Using A Property Management Company
Different types of property management companies exist for property management services, each with strengths and weaknesses. Some specialize in managing a particular rental property type, such as single-family homes or apartments, and others focus on a specific geographic area. Researching and comparing different property management companies is important before deciding on one to hire for managing your rental properties.
Outsourced property management is an option for landlords who prefer to delegate the management of their rental properties to professionals, allowing them to streamline operations and handle day-to-day responsibilities and emergencies more efficiently.
Following are the detailed advantages and disadvantages of using a property management company.
Advantages of Hiring a Property Manager
According to a study by the National Association of Realtors, landlords who hire property managers typically earn an average of 10% more rental income than landlords who manage their properties. Here’s a detailed explanation of the benefits of hiring a management company:
1. Industry Experience & Local OKC Expertise
A realtor like OKC Home Realty Services has decades of experience managing rental properties in the Oklahoma City metro area. Property managers are required to be licensed by the state, which helps us know the market’s ins and outs.
Why Local Expertise Matters in Oklahoma City? Real estate is hyper-local. A national chain or software might not know that Oklahoma winters require specific lease clauses regarding pipe freezing prevention, or how to handle tornado season prep for tenants. Furthermore, Oklahoma has specific laws regarding squatters’ rights and eviction timelines that differ vastly from other states. Hiring a local expert ensures your lease is watertight against local risks.
We help our owners comply with Fair Housing regulations and municipal laws. Some of these rules are basic, and one could easily violate them without knowing.
2. Tenant Sourcing and Screening
Tenant screening is one of a time-consuming tasks. You must go through multiple candidates to choose the right tenant. An untrained landlord may ask inappropriate, illegal, or discriminatory questions or admit unsuitable tenants. A property manager has experience handling all tenant-related issues and can save the property owner’s time and energy, reduce liabilities, and screen out undesirable tenants.
3. Frees Up Your Time
Managing rental property is essentially a second job. You should be ready 24/7 to answer calls and handle repairs. A property manager can save you up to 10 hours per week. You will no longer have to fix broken windows or leaking pipes; your reliable property management company will take care of those items.
So, hiring a property manager for your investment property means all the details are handled.
4. Professional Advice
One of the often-overlooked benefits of hiring a property manager is the potential to get advice on your real estate investment decisions. If you are inexperienced, we can help you evaluate neighborhoods and find the right properties to buy. Once you own them, we provide professional advice to help you maximize your ROI.
5. Professional Maintenance
Many new landlords decide to do maintenance and repairs on their own, but this can be a big mistake. By partnering with a reliable management company, you get access to professional maintenance personnel and volume discounts that you wouldn’t get as an individual.
6. Setting the Right Rental Rates
The right property management company will conduct a proper market analysis to determine the correct rental rates for your rental property, ensuring that you balance maintaining a low vacancy rate with maximizing your monthly income.
The Real Cost of Self-Managing vs. Hiring
Before looking at the “cons” of cost, it is important to ask: Is “Doing It Yourself” actually free?
Many landlords believe they save money by self-managing, but they often forget to calculate the value of their own time. Consider this: If your personal time is worth $50/hour and you spend:
- 4 hours/month on bookkeeping and calls
- 6 hours/month showing the property during vacancies
- 5 hours handling a single maintenance emergency
You have spent $750 worth of your time that month. A professional management fee is often a fraction of that cost, while freeing you to focus on your actual career or family.
Disadvantages of Hiring a Property Manager
Of course, hiring a property management company also has some disadvantages. But understanding the cons will empower you to weigh the benefits against the drawbacks and determine the best course of action for your unique investment goals.
1. Cost & Fees
The main con associated with hiring a property manager is that it comes with fees. On average, a property management firm charges a percentage of the rental income (typically 8% to 10%).
Warning: Watch Out for Hidden Fees Not all property management quotes are created equal. When comparing companies in Oklahoma City, be sure to ask about “hidden” charges that some competitors may not disclose upfront, such as:
- Lease Renewal Fees: Charging you $200+ just to print a new lease for an existing tenant.
- Maintenance Markups: Adding 10-20% on top of the plumber’s bill.
- Setup/Onboarding Fees: Charging you just to enter your data into their system.
- Vacancy Fees: Charging a management fee even when the property is empty.
At OKC Home Realty Services, we believe in transparent pricing.
2. Limited Oversight
Property management companies handle multiple properties, making it challenging for them to fully oversee every single detail of your property every day. This is why choosing a company with a good staff-to-property ratio is essential.
3. Less Direct Control
When you hire a property management company, you lose total control over day-to-day decisions. They will make decisions on your behalf regarding tenant selection and maintenance. This is often an advantage (less stress), but it can be frustrating if you are a micromanager.
4. Communication Problems
Effective communication is crucial in property management. Communication problems can sometimes arise between you and the property manager. If the management company doesn’t communicate promptly and clearly with you or your tenants, it can lead to misunderstandings, disputes, and even legal issues.
5. High Dependency
Relying on a property management company might make you less knowledgeable about the day-to-day operations of your property. If you later decide to manage it yourself or want to be more involved, there may be a learning curve.
6. Rigidity in Decision-Making
Most property management companies have standardized procedures and policies. They do their job based on their code of conduct. This could lead to a lack of flexibility in handling unique situations in rental management that might arise with your properties or tenants.
Is Hiring a Property Management Company Worth It?
Ultimately, it’s up to you to decide based on your long-term and short-term goals. If you lack experience, knowledge, or time, you should definitely consider hiring an expert. However, if you prefer to save the 8-10% fee and have the patience to handle late-night emergencies and legal filings yourself, self-management might be an option.
We understand that being a landlord can be time-consuming, stressful, and even risky. That’s why our OKC property management service takes the hassle out of managing rental properties so you can focus on your real estate success.
FAQs on Pros and Cons of Property Management
Is hiring a property manager tax deductible?
Yes! In almost all cases, the fees you pay to a property management company are considered a business expense and are 100% tax-deductible. This effectively lowers the real cost of hiring a manager when you file your taxes. Always consult with your CPA for your specific situation.
Do property managers pay for repairs?
Typically, no. The property manager coordinates the repairs, vets the vendors, and inspects the work, but the bill is paid from the property’s rental income (your funds). However, a good manager often secures lower rates than a regular homeowner could get.
Does a property manager decide who rents my house?
This depends on your agreement. Most full-service management companies (like us) handle the screening and selection process completely to ensure compliance with Fair Housing Laws. This protects you from discrimination lawsuits. However, you often set the criteria (e.g., “Must have 600+ credit score”).
Can I manage my property myslef if I live out of state?
Technically, yes, but it is extremely risky. If a pipe bursts or a tenant stops paying, you cannot be there to handle it. Most out-of-state investors hire a local manager to be their “boots on the ground” for inspections and legal postings.
What is the owner anonymity benefit?
One of the biggest hidden pros of hiring a manager is that the tenant does not have your personal phone number. You are shielded from sob stories, late-night texts, and aggressive confrontations. We act as the professional barrier between you and the tenant.
How do you fire a property management company?
Depending on the cotract, the landlord may need to provide written notice (usually 30-60 days). There may also be termination fees. Always read your management agreement carefully before signing. If you’re already in the contract read the article property management agreement termination.
How do you deal with problems associated with your property management company?
Keep your communications in writing. Email is good for this. Make clear requests. If you don’t get the level of service you need, consider firing them.
What is the difference between a full-service property management company and a limited-service property management company?
Full-service property management companies manage everything on your property, from rent collection to maintenance to tenant screening to evictions, whereas limited-service property management companies only deal with some of these tasks.
What are some of the resources available to help landlords choose a property management company?
There are a number of resources available to help landlords choose a property management company, such as:
1. National Association of Residential Property Managers (NARPM)
2. The American Property Management Association (AMPIA)
3. The Better Business Bureau
4. Online reviews
Author
Scott Nachatilo is a licensed real estate broker and Certified Property Manager with over 27 years of experience in Oklahoma’s real estate market. He holds a Master’s Degree in Geology from the University of Missouri and is a proud NARPM member. He is also a co-author of Weekend Warriors Guide to Real Estate (2006). Scott founded OKC Home Realty Services to help landlords and investors across Oklahoma City maximize their returns and enjoy a stress-free property ownership experience.
