When it comes to managing rental property, many landlords and real estate investors face the important decision of whether to hire a property manager. An okc property management company can handle everything from tenant screening and rent collection to maintenance and legal issues. But the question remains: can I afford a property manager?
Understanding the Costs
The cost of hiring a property manager typically ranges between 8% to 12% of the monthly rental income, though this can vary depending on the location, type of property, and services included. For example, if your rental property generates $1,500 per month in rent and the property manager charges 10%, you’ll be paying $150 each month. Additional costs might include leasing fees, maintenance markups, and charges for evictions or inspections.
This may seem like a significant expense, especially for landlords operating on a tight budget. However, the true cost of not hiring a manager can sometimes be higher. Vacancies, missed rent payments, legal mistakes, or maintenance issues can cost much more than the management fee.
Time vs. Money
Affording a property manager isn’t just about your financial situation—it’s also about the value of your time. If you own multiple properties, live far away from your rental, or have a full-time job, managing a property on your own can become overwhelming. In such cases, hiring a professional can actually save money in the long run by keeping tenants happy, reducing vacancies, and handling repairs promptly.
Conversely, if you own just one property and enjoy being hands-on, managing it yourself could make more sense—at least until you grow your portfolio or your responsibilities increase.
Budgeting and Income Goals
To determine affordability, it helps to look at your rental property as a business. Subtract all expenses (including a hypothetical management fee) from your rental income. If the property still generates a profit and meets your financial goals, then a manager could be worth it. You might also consider hiring a property manager temporarily or for certain tasks only, like finding tenants or handling legal notices.
Final Thoughts
Ultimately, whether you can afford a property manager depends on more than just your bank balance. It involves evaluating your time, your stress tolerance, your long-term investment strategy, and the potential risks of managing alone. For many landlords, the peace of mind and professionalism that a property manager brings is well worth the cost.