Self-Managing vs Using a Property Manager: Pros, Cons, and What Landlords Should Consider

Both approaches can work well, depending on the owner’s experience, time availability, risk tolerance, and investment goals.

Option 1: Self-Managing Your Rental Property

Many landlords begin by managing their own property, particularly when they own a single rental or live close by.

Potential Advantages

1. Lower Direct Costs

The most obvious benefit is saving on management fees. Without a property manager, you avoid paying a percentage of rent or letting fees, which can improve short-term cash flow.

2. Full Control Over Decisions

You make all decisions directly: tenant selection, rent increases, maintenance priorities, and how issues are resolved. Some landlords value being hands-on and having immediate oversight.

3. Direct Relationship with Tenants

Self-management allows you to communicate directly with tenants and build rapport. For some owners, this creates trust and smoother day-to-day interactions.

Potential Challenges

1. Time Commitment

Property management is not limited to collecting rent. It involves advertising, viewings, screening, compliance, inspections, maintenance coordination, arrears follow-up, and dispute resolution. These tasks often arise outside business hours.

2. Legal and Compliance Risk

Tenancy law, Healthy Homes standards, privacy obligations, and documentation requirements are detailed and change over time. Mistakes can lead to Tribunal applications, fines, or delayed possession.

3. Emotional Involvement

When issues arise – rent arrears, property damage, or difficult conversations – it can be challenging to remain objective. Emotions can sometimes influence decisions that are better handled dispassionately.

4. Systems and Scale

Professional managers use specialised software, contractor networks, and established processes. Replicating this level of structure can be difficult for an individual landlord, especially as portfolios grow.

Option 2: Using a Professional Property Manager

Engaging a property manager means outsourcing the day-to-day operation of the tenancy to a specialist.

Potential Advantages

1. Lifestyle Freedom

A property manager handles advertising, tenant enquiries, rent collection, maintenance, inspections, and compliance. This can significantly reduce the workload for landlords, particularly those with multiple properties or full-time jobs.

2. Regulatory Knowledge and Risk Management

Professional managers work within the Residential Tenancies Act and related legislation daily. They are trained to apply correct processes for rent increases, notice periods, inspections, bond handling, and Tribunal matters.

3. Objective Tenant Management

A third party can manage difficult conversations, arrears, and enforcement professionally and unemotionally, which often leads to clearer outcomes.

4. Market Knowledge

Experienced managers monitor rental demand, pricing, and tenant expectations, helping properties remain competitively positioned and compliant.

5. Contractor Coordination

Established agencies typically have vetted trades, negotiated rates, and systems for urgent and routine maintenance.

Potential Challenges

1. Cost and Fee Structure

Management and letting fees reduce net rental income, and the way these fees are structured can vary between agencies. For some landlords, particularly those with tight cashflow, both the level of fees and clarity around what is included versus charged separately are key considerations when reviewing a management agreement

2. Loss of Direct Control

Decisions are delegated. While owners still set parameters, they are no longer involved in every interaction, which can feel uncomfortable for highly hands-on investors.

3. Service Variability Between Agencies

Not all property managers operate at the same standard. Experience, communication quality, systems, and workload per manager vary widely, and choosing the wrong provider can be frustrating.

Factors to Consider When Choosing

There is no “correct” choice. The best option depends on individual circumstances.

Key questions landlords may wish to ask include:

How much time can I realistically commit?

Self-management may suit owners who are available during business hours, live locally, and are comfortable responding to issues promptly.

How confident am I with tenancy law and compliance?

Those unfamiliar with legal processes may prefer professional support to reduce risk.

What is my long-term investment strategy?

Landlords planning to grow a portfolio often find professional systems and scalability valuable.

How do I handle conflict and enforcement?

Some owners prefer a buffer between themselves and difficult situations.

What is my tolerance for risk versus cost?

Saving fees can be attractive but must be balanced against the potential cost of mistakes, vacancy, or Tribunal outcomes.

No Right or Wrong Choice

Many successful landlords self-manage effectively, particularly when they are experienced, organised, and proactive. Equally, many achieve better outcomes by outsourcing management to professionals, allowing them to focus on portfolio strategy rather than daily operations.

The decision is less about whether one approach is “better” and more about alignment with the landlord’s time, expertise, risk appetite, and lifestyle priorities.

Understanding both sides enables landlords to make a deliberate choice rather than defaulting to habit or assumption - and to review that choice as their portfolio and circumstances evolve.