Should You Self-Manage Your Rental Property or Hire?

Investing in a rental property in Arizona can be a very profitable investment for you as long as you have a good management company to take care of all the day to day tasks involved in renting out a property. When you are first starting out as a landlord with just one rental property, it is usually best to handle the property yourself. Down the road as your portfolio grows, it may be time to hire a property management company to handle your rental properties for you. Whether you are a first time landlord or a seasoned investor, there are good points to both self-managing and hiring a property manager.

The two types of management have their merits and each situation is unique with its own set of circumstances. A person with the means and sufficient time can possibly manage their own rentals but there are many things to consider when looking into investing in a rental property and the management of those properties.

What Self-Management Actually Looks Like

There are so many good reasons to manage your own rental properties. For one, you keep more of your rental income. Additionally, you are in control of dealing with your tenants. And perhaps best of all, you are closely connected to your rental property investment.

Examples of items to consider are:

Marketing vacant units and scheduling showings
Screening applicants through background and credit checks
Drafting and executing lease agreements
Collecting the tenants’ monthly rent payments and addressing any late payments.
Coordinating repairs and maintenance
Attend tenants’ complaints and troubles 24/7. Many troubles can be dealt with over the phone; some will require a visit to the rental property.
Comply with local landlord-tenant laws, as well as fair housing requirements.

For the busy owner of several nearby properties this will become too much to handle. The complex work of screening tenants in the proper manner can be difficult and time-consuming in itself, but when that tenant goes bad it can result in great amounts of financial stress and much unwanted work.

The Hidden Complexity of Tenant Screening

Tenant screening is a critical part of managing rental properties. A poor tenant can mean unpaid rent, property damage, and a costly eviction. For that reason, HUD addresses Fair Housing Laws applicable to Rental Properties throughout the screening process.

Tenant screening also entails more than just a simple credit check. Verification of potential tenant’s income as well as review of their rental history are also factors to consider. Calling previous landlords or management companies of prior residences to obtain a reference is typical practice as well. The greatest amount of care should be taken in reviewing all submitted applications and choosing the most qualified applicant based on the landlord’s established rental criteria.

A property manager will already have an established screening process in place, and can interpret the results correctly while staying in compliance with all applicable landlord-tenant laws.

Rent Collection and Legal Compliance

Consistent rent collection is often depicted as an easy way for landlords to collect payment from tenants but that is not the case. It’s not easy to enforce according to the terms of the lease agreement, and requires the landlord to know the specific requirements of Arizona landlord-tenant law.

For example, the Arizona Residential Landlord and Tenant Act published by the Arizona Attorney General outlines the notice required for late charges, how and when a tenant may be charged for late fees, how a landlord can evict a tenant and in what order the landlord must proceed before evicting a tenant. If a landlord fails to give proper notice or follows the wrong procedure then the entire process must start over again and the landlord will have added weeks of lost time and possibly lost rental income due to vacancy.

A property management company is better equipped to manage rent due from tenants. They set up a way to have rent collected each month. They can enforce late fees in accordance with the lease agreement. And they will start the eviction process if necessary.

Maintenance Coordination and Vendor Relationships

Maintenance is one of the most time-consuming parts of owning a rental. Tenants expect prompt responses to repair requests, and deferred maintenance can reduce property value over time. Self-managing landlords often find themselves sourcing vendors on short notice, negotiating prices without leverage, and spending weekends managing work orders.

Professional property management companies establish a network of quality contractors, many of which are licensed and insured to provide peace of mind to investors. By utilizing a proven system of work order response, investors can expect quick turnaround times to address issues that may otherwise cause long-term damage to a property. Companies like Superior Rental Properties approach this by coordinating all maintenance issues so investors can maximize their returns while minimizing their own involvement.

Time Commitment Is a Real Cost

There are many hours of work behind managing a rental property, even though it’s often billed as passive income. According to the National Association of Realtors research, Investment property is one of the most common ways for Americans to build wealth, though it takes real systems to make it feel passive.

On the other hand, as a landlord you have many responsibilities which take up a lot of time, including contacting tenants and suppliers, dealing with repairs, collecting rent on time and amending leases from time to time. Let’s say that you spend on average 8 hours a month dealing with all these responsibilities. That in itself is a cost of being a landlord that you would not have if you used a property management company. That time could be spent looking for other investment properties to add to your portfolio.

The typical property management fee would be 8-12% of the total collected monthly rent. For most property investors, this additional fee is more than compensated for by the time saved, the better tenant selection and the protection from costly errors.

Reducing Vacancy and Protecting Your Returns

A critical function that a property manager can fulfill is to keep a property rented. Vacancy is by far the biggest cost to a rental property. A property manager can utilize many different marketing techniques, from internet advertising, print advertising, signage, and more to bring in quality applicants. A seasoned property manager has an inventory of applicants already, and can have a new tenant moved in within days of a previous tenant’s departure. This minimizes the amount of time that a property sits vacant, and can allow an investor to generate a better return on their investment.

They also have in-depth knowledge of current rental prices in your local market, helping you price your property to get the highest possible return.

How Real Estate Professionals Fit Into the Picture

Investors who want to make the most of their real estate investment should think carefully about how they’ll manage the property as part of their overall plan. Busy schedules make it hard to maximize returns and avoid costly mistakes without expert advice. Whether it be identifying potential property investments with rental growth potential, investigating current local rental yields in certain areas and understanding the local rental market prior to investment; property investors benefit greatly from seeking the expertise of local property professionals to guide them from acquiring the right investment property to successfully managing long-term rental returns.

Once you’ve selected the right property, how you manage it comes down to your own ability to handle the day-to-day, your goals, and how hands-on you want to be.

Making the Right Choice for Your Situation

Is paying a property management fee (8% to 12% of the monthly rent) worth avoiding the time, stress, and risk that come with managing your own properties?

Investors who value their time or desire to have a professional process for managing a rental property can likely get a better return on their money with a property management company, regardless of their fees. After all, mistakes in tenant screening and illegal methods of landlord/tenant communication and enforcement can cost an investor hundreds, if not thousands of dollars!

Last Updated: July 2026