Entering the world of real estate investment as a landlord can be exciting, especially in a dynamic market like Washington, DC. However, as with any new venture, it’s crucial to consider a few important details.

When it comes to an investment property, you’ll need to decide if you want to handle the property management tasks yourself or hire a professional. It’s essential to weigh the pros and cons of each approach.

Here, we help you look at each option to make the right decision for your new role and, ultimately, your rental property success.

DIY Property Management: Pros and Cons

Pros of DIY Management

• Cost savings. Managing your property yourself means not paying a property management fee, which can typically range from 8% to 12% of your monthly rental income. This can lead to greater profitability, especially for first-time landlords still establishing cash flow.
• Direct control. When you manage your property personally, you have complete control over tenant selection, lease agreements, maintenance decisions, and the property’s aesthetic. This hands-on approach allows you to ensure everything is done according to your standards.

Cons of DIY Management

• Time commitment. Managing a rental property is not a part-time job. From screening applicants and handling maintenance requests to coordinating inspections, the time commitment can quickly add up, especially if you have multiple properties or other obligations.
• Legal responsibilities. Landlords have certain legal obligations, from following fair housing laws to complying with local building codes. The learning curve can be steep, and mistakes can result in costly lawsuits.
• Increased stress. Managing tenant relationships, addressing complaints, and resolving conflicts can be stressful, particularly if you have less experience dealing with such situations.

Hiring a Professional Property Manager: Pros and Cons

Pros of Hiring a Property Manager

• Expertise and experience. Professional property managers have extensive knowledge of local laws, regulations, and market trends. They can navigate the complexities of the rental market more efficiently than a first-time landlord.
• Time efficiency. By hiring a property manager, you free up valuable time that can be used for other pursuits, whether that be focusing on your own career or simply enjoying more leisure time.
• Maximized revenue. Property managers are skilled at setting competitive rental rates, minimizing vacancies, and increasing tenant retention. Their experience can lead to better overall profitability for your property and long-term success.

Cons of Hiring a Property Manager

• Costs. Professional property management fees can eat into your rental income. It’s essential to assess whether the cost is justifiable based on the expected return. For many investment property owners, this cost is a small price to pay for the experience, convenience, value, and peace of mind they get with professionals.
• Less control. When you hire someone to manage your property, you relinquish some level of control. While this can be a positive aspect for some, others may find it difficult to trust others with their investment.
• Finding a trusted pro. Not all property management companies are created equal. You’ll need to thoroughly vet potential managers to ensure they align with your expectations and needs.

Making Your Decision: Factors to Consider

When deciding between DIY management and hiring a property manager, it’s essential to consider whether you have the time and skills to fully commit to your property.

While property management companies charge a fee, this small amount of the rent is often well worth it for both new and experienced landlords to streamline the management process and maximize their investment.

Ultimately, the choice between managing your DC property yourself or hiring a professional property manager depends on your individual circumstances, knowledge, and comfort level with managing tenants and property.

Go Pro With FAS Management

Find out everything you can get with professional DC property management with FAS Management. We have been delivering property management services to the nation’s capital since 1946.  Contact us today at (202) 337-5080 to learn how we can help maximize your property’s potential while minimizing stress.