If you’re asking yourself, “Should I hire a property management company?”—you’re not alone. Many landlords, especially those who own multi-family units or small apartment buildings, eventually face this crossroads.
Whether you're managing two duplexes or a portfolio of 20 units, the decision to bring in a professional property management team can feel like a big leap. However, with growing responsibilities, expanding portfolios, and higher tenant expectations, it might just be the move that protects your time, investment, and peace of mind.
In this guide, we’ll discuss the key considerations, benefits, and drawbacks of hiring a property manager and how to determine if it’s the right move for you.
What Does a Property Management Company Do?
A property management company handles the day-to-day operations of rental properties. For small apartment buildings and multi-family units, this often includes:
- Advertising vacancies and tenant screening
- Rent collection and deposit management
- Coordinating repairs and ongoing maintenance
- Handling tenant issues and lease enforcement
- Conducting move-in/move-out inspections
- Managing evictions if necessary
- Providing financial reporting and legal guidance
Some full-service property management companies also offer extras like real-time owner dashboards, 24/7 maintenance support, and strategic advice for improving ROI.
When Does It Make Sense to Hire a Property Management Company?
The decision isn’t one-size-fits-all. You might not need a manager for a single rental down the street, but you may quickly hit a tipping point as you scale. Below are some questions to help you evaluate your situation.
1. How Many Units Do You Own?
If you have several units (or they’re spread out geographically), the time and logistics of managing them yourself can quickly spiral. Each new door adds to your workload. A property manager helps you scale without sacrificing service quality or efficiency.
2. Do You Live Near Your Rentals?
Long-distance landlords face unique challenges. Whether you're in another part of Michigan or living out of state, coordinating maintenance, showings, and emergencies remotely can be stressful and ineffective. A local property management company becomes your boots on the ground.
3. How Much Time Can You Devote?
Landlords who also work full-time jobs or run other businesses often struggle to give their properties the attention they need. Missed maintenance, poor tenant screening, and delayed responses can quickly cost more than a management fee.
4. Are You Comfortable with Landlord Duties?
Some landlords enjoy the hands-on side of the business. Others don’t—or simply don’t have the expertise. If you’re not confident handling lease enforcement, local regulations, or tenant conflicts, a manager brings structure and legal knowledge to the table.
5. Do You Want to Grow Your Portfolio?
If your long-term plan includes acquiring more properties, you’ll eventually need systems and people to support that growth. Hiring a management company now can free up your time to focus on acquisitions, renovations, and strategic planning.
Pros and Cons of Hiring a Property Management Company
Like any business decision, hiring a property manager comes with trade-offs. Understanding both the advantages and potential drawbacks can help you make an informed, confident choice.
Pros
Some of the benefits include:
- Less Stress and Time Commitment: You’re no longer on call for 2 AM emergencies, late rent excuses, or contractor scheduling issues.
- Higher Tenant Quality: Experienced property managers screen thoroughly and spot red flags, reducing turnover and late payments.
- Consistent Rent Collection: Professional systems ensure rent is collected on time, late fees are enforced, and notices go out according to local laws.
- Maintenance Handled Efficiently: Managers have vetted vendor networks and can get repairs done faster and often at better rates.
- Legal and Regulatory Knowledge: Avoid lawsuits or compliance headaches by having a partner who knows landlord-tenant laws and fair housing rules.
- Better ROI Over Time: With fewer vacancies, improved tenant retention, and less costly mistakes, you may actually come out ahead financially.
For many landlords, these benefits alone make property management worth the cost, especially as their portfolio grows.
Cons
That said, there are some potential drawbacks to be aware of before you hand over the keys.
- Management Fees: Expect to pay around 8–12% of monthly rental income. Some companies charge additional fees for leasing or maintenance oversight.
- Less Control: You’re trusting someone else to interact with tenants and make day-to-day decisions. Communication is key.
- Risk of Choosing the Wrong Company: Not all managers are created equal. Hiring the wrong one can be more trouble than it’s worth. Vetting thoroughly is essential.
- Possible Upfront Expenses: Some companies charge onboarding or setup fees. Be sure to read the contract carefully.
By weighing these cons against the potential benefits, you can decide whether hiring a property manager aligns with your goals, resources, and investment strategy.
Common Scenarios Where Hiring Makes Sense
If you're still unsure, here are some typical landlord scenarios where hiring a property management company is worth strong consideration.
You’ve Recently Invested in a Small Apartment Building
Multi-family properties bring more tenants, more maintenance, and more complexity. If you’ve taken the leap from single-family to a 6- or 8-unit building, the demands likely just doubled. Many investors at this stage hire a manager to stay organized and compliant.
You’ve Moved Away From Your Investment Properties
Even an hour’s drive can make managing rentals feel like a chore. If you’ve relocated or plan to, having someone local to oversee daily operations is crucial.
You’re Facing Tenant or Legal Issues
Struggling with nonpayment, difficult tenants, or lease enforcement? Property managers are trained to handle difficult situations by the book, reducing risk and conflict.
Maintenance Is Falling Through the Cracks
Deferred maintenance is one of the fastest ways to lose good tenants and devalue your asset. A manager ensures work gets done on time and to standard.
How to Choose the Right Property Management Company
If you decide to move forward, take time to find a company that fits your needs. Here’s what to look for:
- Strong local presence and knowledge of your market (especially in Michigan counties like Macomb, Wayne, Oakland, Washtenaw, and Livingston)
- Transparent pricing with no hidden fees
- Responsive communication and a clear point of contact
- Technology tools like online owner portals and digital rent payments
- Solid reputation backed by investor reviews and referrals
- Experience with your property type, whether that’s duplexes or 10-unit apartment buildings
- A detailed management agreement that outlines roles, responsibilities, and fees
Don’t be afraid to ask tough questions. How do they handle vacancies? Who responds to tenant calls? What’s the eviction process? A trustworthy manager will walk you through everything before you sign.
Should You Hire a Property Management Company? A Quick Self-Test
Answer the following questions:
- Do I have the time to manage my property effectively?
- Do I live near my rentals?
- Am I confident in my ability to screen tenants, collect rent, and enforce leases?
- Am I familiar with local landlord-tenant laws?
- Do I want to spend my time managing tenants or growing my investment portfolio?
If you answered “no” to more than one of these, it might be time to explore professional help.
Let’s Find Out If Property Management Is Right for You
Hiring a property management company isn’t just about offloading tasks—it’s about making a strategic decision for your business and lifestyle. The right partner can help you stabilize your rentals, scale with confidence, and reduce stress along the way.
At JMZ Management, we help landlords throughout Southeast Michigan evaluate their unique needs and decide whether property management is a good option for them.
Are you still not sure if it’s the right move? Let’s talk.
Schedule a free consultation today and let’s explore whether hiring a property manager is the next best step for your real estate journey.
