Should I Manage My Rental Property Myself or Hire a Property Manager?

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Manage the property yourself if you live nearby, have reliable time, know Michigan landlord rules and are comfortable handling repairs, screening and late rent; hire a manager if any of those is missing or if your time is worth more than the fee. Neither choice is right for everyone, and many investors self-manage their first home and hire a manager as they add more.

This guide lays out what the job involves, what it costs each way, and how to decide. JMZ Management is a property manager, so we have a point of view, but we also think some owners are better off doing it themselves, and we say so below.

Key takeaways

• Self-managing saves the management fee but costs your time and puts the legal risk on you.
• The real comparison is the fee against your time, your mistakes and your vacancy.
• Distance, a demanding job and limited landlord experience are the strongest reasons to hire.
• Read any management contract for fees, repair approval limits and how to end it.
• You can start one way and switch later.

Step 1: List what the job actually involves

Being a landlord is more than collecting rent. Expect to handle:

• Pricing the home and marketing it
• Showings, applications and screening that follows Fair Housing rules
• Leases that comply with Michigan law
• Move-in inspections and security deposit handling
• Rent collection, late notices and, sometimes, eviction
• Repairs, including middle-of-the-night emergencies
• City rental certificates and inspections
• Bookkeeping and year-end tax records

Our posts on self-managing vs. hiring a property manager and Michigan landlord-tenant laws go deeper on the legal side.

Step 2: Compare the cost both ways

JMZ charges 10% of monthly rent with a $100 monthly minimum, no management fee while the home is vacant, and a residential leasing fee equal to the first month's rent when a vacancy is filled.

Example only. On a hypothetical $1,900 rent, the management fee is $190 a month. If self-managing takes you an example 6 hours a month, you are paying yourself about $32 an hour by doing it. If one extra empty month or one avoidable legal mistake happens because of inexperience, the savings can disappear. Plug in your own numbers with JMZ's rental property savings calculator.

Step 3: Be honest about when self-managing works

Self-managing tends to work when you:

• Live close enough to get to the home quickly
• Have flexible time during business hours
• Have reliable contractors and can handle small repairs yourself
• Are willing to learn Michigan rules on deposits, notices and evictions
• Can stay firm and consistent when rent is late

If that describes you, self-managing can be a good choice, especially for one home.

Step 4: Know the signs it is time to hire

• You live out of the area or travel often. See managing a rental property out of state.
• Your job or family leaves little time for calls and showings.
• You have more than one or two rentals.
• You have had a long vacancy, a bad tenant or an eviction.
• You are not confident about Michigan landlord law.

Our post on signs it's time to hire a property management company covers more.

Step 5: Know what a good manager provides

For single family homes, JMZ follows a five-part process: Find, Place, Operate, Protect and Turn. That includes:

• An updated rental analysis and marketing on JMZ's site, more than three dozen rental sites and through agents
• Screening, with the full applicant packet sent to you for approval
• Online rent collection, late-fee enforcement, monthly statements and year-end 1099s
• A dedicated property manager, an in-house maintenance company and a 24-hour emergency hotline
• An in-house legal department, optional Eviction Protection at $25 per month, and help with city rental certification
• Move-out inspection and deposit reconciliation

JMZ also offers a Guaranteed Rent Program under a separate agreement for tenants JMZ places and approves for the program.

Step 6: Read the contract before you sign

Whoever you hire, look for every fee in writing, the repair approval limit, who keeps late fees, how owner funds are disbursed and how either side can end the agreement. Our post on what makes a property management contract good has a checklist.

Common mistakes

• Comparing the fee to zero instead of to your time and vacancy risk
• Using a generic lease form that does not fit Michigan law
• Screening inconsistently, which creates Fair Housing risk
• Hiring the cheapest manager without asking how fast they lease homes
• Signing a management contract without reading the termination terms

Frequently asked questions

Is it worth hiring a property manager for one rental house?

It can be, especially if you live far away, have limited time or are new to Michigan landlord rules. If you live nearby and have time and experience, self-managing one home can also work well.

How much does a property manager cost in Michigan?

Fees vary by company. JMZ Management charges 10% of monthly rent with a $100 monthly minimum, no fee while vacant, and a leasing fee equal to the first month's rent.

What does a property manager do for a single family home?

A property manager handles pricing, marketing, screening, leases, rent collection, maintenance, legal notices, city compliance, statements and move-outs on the owner's behalf.

Can I switch from self-managing to a property manager later?

Yes. JMZ does not charge a leasing fee when a tenant is already in place, and our guide on switching managers explains the process.

Related guides and resources

• JMZ pricing
• Single family home management
• How to switch property management companies
• Cost to hire a property manager
• Owner testimonials
• Property management in Plymouth

The bottom line

Self-manage if you have the time, distance and know-how. Hire a manager if you do not, or if your time is worth more than the fee. Either way, make the decision with real numbers. At JMZ Management, your property is our business.

Want to see what professional management would look like for your home? Get a free rental analysis or management proposal at jmzmanagement.com/freerentalanalysis or call 248-284-6990.

CONTACT US to learn more about professional property management in Michigan.