Self-Managing a Rental Property: Is It Still Worth Your Time?

The Calm Owner Advantage

Labor Day is supposed to be one of those days when we give ourselves permission to do a little less work. Maybe you are spending time with family, getting out on the water, firing up the grill, or simply enjoying a Monday that does not quite feel like a Monday. Rental properties, though, do not necessarily recognize holidays.

Last week, we talked about why the most expensive move can sometimes be no move at all. That conversation was about making deliberate decisions with an asset. This week, on Labor Day, I want to look at another part of rental ownership that is much harder to see on a spreadsheet: the owner’s own time.

Ask almost any self-managing rental-property owner what surprised them about managing their own property, and sooner or later you are probably going to hear about the call. It is 2 a.m., the phone is ringing, and the resident has no water, the AC just quit, or something is leaking. You are half awake trying to figure out how serious it is. You are also trying to decide who you can call at that hour and what it is going to cost. Somewhere in the middle of all of that, a lot of owners have probably had the same thought: I bought this as an investment.

That part of rental ownership does not show up on a spreadsheet.

There Is More to the Return Than the Rent

When owners evaluate a rental property, we naturally look at the numbers: rent, mortgage, taxes, insurance, maintenance, and vacancy. Those numbers matter a lot. But there is another cost that is harder to measure: how much of your time and mental energy the property requires from you.

Maybe you have never received a 2 a.m. call. Great. But there are still contractors to coordinate and resident questions to answer. There are lease dates to remember, rental comps and changing market conditions to keep up with, and invoices to review. Those decisions also have a way of following you into evenings and weekends.

None of that means self-management is a bad decision. Plenty of owners manage their own properties very successfully, and some genuinely enjoy doing it. From an asset-management standpoint, the question is simply whether it still makes sense for you and for what you want the investment to accomplish.

The Work Is Not Always Physical

There is another part of self-management that owners do not always think about when they first decide to rent a home. It is the ongoing responsibility of being a housing provider.

Fair housing requirements, state and local laws, screening standards, notice periods, assistance programs, and lease requirements continue whether you manage one property or one hundred. In Virginia, the Virginia Residential Landlord and Tenant Act establishes many of the rights and obligations of residential landlords and tenants.

You do not have to become a landlord-tenant law expert simply because you own a rental property. But if you manage it yourself, you need to recognize when a decision may have legal implications. You also need to know when it is time to seek qualified guidance. That knowledge, and the responsibility of keeping up with it, is part of the workload too.

Try a Five-Minute Labor Day Check-In

Since today is Labor Day, take five minutes and think back over the last 30 days. Estimate how much time your rental required from you. Include calls, texts, emails, contractor coordination, research, and paperwork. Count the decisions that stayed in the back of your mind too.

Then ask yourself three things: Are you comfortable with the amount of time the property requires? Do you have reliable systems and resources in place when you are unavailable or do not know the answer? And is managing the property yourself still the best use of your time?

There is no universally correct answer. For some owners, the answer is absolutely yes. They have the experience, systems, contacts, and bandwidth to continue managing successfully. For somebody else, those same questions may reveal that the property is demanding far more of them than they realized. Either answer is useful.

Sometimes the First Step Is Just a Conversation

Phyllis and I tell owners this all the time: not everyone who calls Real Property Management Regions needs to hire us. Sometimes we talk through the property, look at the rent, discuss what the owner is currently handling, and talk about where they want to go with the investment. It may become pretty clear that continuing to self-manage makes sense.

Other times, we start adding up the hours and responsibilities. We also talk about that lingering feeling of I am not completely sure I am handling this the right way. That is when professional property management may begin to make a lot more sense.

What Are You Really Buying Back?

That conversation is about more than a management fee. It is about what you want the investment to do for you and how much of your life it should require in return.

So on a day meant to recognize work, it may be worth asking whether your rental property is still working for you, or whether you are spending too much time working for it.

If you are not sure, reach out to Stephen and Phyllis at Real Property Management Regions. We will look at the property, the numbers, the workload, and what you are trying to accomplish. Maybe professional management makes sense. Maybe it does not. Either way, you will have a clearer picture of your options.

And if part of the return happens to be getting a few evenings, weekends, or even the occasional 2 a.m. phone call back, that may not be a bad return either.

Happy Labor Day from Real Property Management Regions.
Property management with an asset-management mindset.

This content is provided for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. Readers should consult with licensed professionals regarding their specific circumstances.

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