Self-Managing vs. Hiring a Property Manager in Hampton Roads: What Does It Really Cost?
Why Property Management Fees Can Cost Less Than Self-Managing a Rental Property in Hampton Roads
Many Hampton Roads rental property owners successfully manage their own properties, sometimes for years.
For some landlords, self-management works very well. They have the time, experience and systems in place to handle tenant communication, rent collection, maintenance, documentation and the other responsibilities that come with owning a rental property.
But circumstances change.
A job becomes more demanding. You move out of the area. Maintenance becomes harder to coordinate. A tenant situation becomes more complicated. Virginia landlord-tenant requirements change. Or managing the property simply starts taking more of your time than you expected.
At that point, many owners begin asking an important question:
Am I really saving as much as I think by managing the property myself?
Property management fees are easy to see because they appear as an expense. The costs of self-management can be harder to recognize because they’re spread across vacancies, maintenance, turnover, your time and the occasional costly mistake.
Here are some of the factors Hampton Roads rental property owners should consider when deciding whether to continue managing on their own or hire a professional property manager.
Why Many Hampton Roads Landlords Start by Self-Managing
There are plenty of understandable reasons homeowners decide to manage a rental themselves.
Maybe you moved out of your former residence and decided to rent it rather than sell it.
Perhaps you received PCS orders and wanted to keep your Hampton Roads home.
You may have inherited a property.
Or perhaps you purchased a rental specifically as an investment and assumed managing one property wouldn’t require much time.
Initially, self-management may seem straightforward:
Find a tenant. Sign a lease. Collect the rent. Fix things when they break.
But managing a rental property involves much more than collecting a monthly rent payment.
As time goes on, owners often discover that the true cost of self-management isn’t just measured in dollars. It’s also measured in time, responsibility, risk and the number of issues that require your personal attention.
Vacancy Can Be One of the Largest Costs of Self-Management
One of the most expensive things that can happen to a rental property is for it to sit vacant.
If a property rents for $2,200 per month, every additional week of vacancy represents hundreds of dollars in lost rental income.
Pricing a rental too high can cause it to sit on the market.
Pricing it too low can mean leaving money on the table throughout the lease term.
Effective rental pricing requires more than looking at an online estimate. Current competition, property condition, location, amenities, seasonality and recent rental activity can all affect what a prospective tenant is willing to pay.
An experienced local property manager should have a good understanding of the Hampton Roads rental market and can help position the property competitively from the beginning.
Reducing unnecessary vacancy can offset a meaningful portion of the cost of professional management.
Finding a Tenant Is Only Part of the Job
Getting an application doesn’t necessarily mean you’ve found the right tenant.
Applicant screening is one of the most important parts of managing a rental property, and it should be handled consistently.
Depending on the screening procedures being used, the process may include reviewing items such as:
- Income and employment information
- Rental history
- Credit information
- Relevant background information
- Other established qualification criteria
Just as importantly, rental criteria and screening procedures should be applied consistently and in accordance with applicable Fair Housing requirements.
Professional management provides an established process for marketing, applications, screening and documentation rather than requiring the owner to create that system from scratch.
Virginia Landlord Requirements Continue to Change
Owning rental property in Virginia means operating within an established legal and regulatory framework.
Depending upon the property and circumstances, landlords may need to consider requirements involving:
- Leases and required disclosures
- Security deposits
- Property access and notices
- Maintenance responsibilities
- Nonpayment of rent
- Lease violations
- Fair Housing
- Move-out procedures
- Security deposit accounting
- Changes to Virginia landlord-tenant laws
One of the challenges for a self-managing landlord is that these requirements do not remain static.
Laws and regulations change.
What worked several years ago may not necessarily reflect current requirements.
A professional property management company should maintain established procedures designed around applicable Virginia landlord-tenant and Fair Housing requirements and coordinate with qualified legal professionals when appropriate.
Professional management cannot eliminate every risk associated with owning rental property, but having consistent systems, documentation and procedures can help owners manage those responsibilities more effectively.
Maintenance Can Quickly Become a Second Job
The tenant calls and says the air conditioning isn’t working.
There’s a leak under the kitchen sink.
The water heater stopped producing hot water.
A toilet is overflowing.
The refrigerator isn’t cooling.
Now the landlord has another job: figuring out who to call, coordinating access with the tenant, determining whether the vendor showed up, approving the repair, paying the invoice and confirming the problem was actually resolved.
For landlords who live outside Hampton Roads, maintenance coordination can be even more challenging.
An established property management company already has procedures for receiving maintenance requests, communicating with tenants, coordinating vendors, documenting repairs and keeping owners informed.
That doesn’t mean repairs disappear.
It means you don’t necessarily have to personally manage every repair.
Emergency Repairs Don’t Respect Your Schedule
Rental property problems don’t always happen Monday through Friday between 9:00 and 5:00.
A maintenance emergency can happen while you’re at work, on vacation, out of state or asleep.
Self-managing landlords need a plan for handling urgent maintenance when they aren’t available.
For owners who moved away from Hampton Roads—particularly military homeowners who received PCS orders—having someone local who can coordinate issues with the property can be especially valuable.
The property may still be in Virginia Beach, Chesapeake, Norfolk, Portsmouth, Suffolk or Hampton even when the owner is hundreds or thousands of miles away.
Turnover Is More Than Finding the Next Tenant
When a tenant moves out, the work doesn’t stop.
A turnover can involve:
- Documenting the condition of the property
- Reviewing tenant responsibilities
- Coordinating cleaning
- Scheduling repairs
- Obtaining estimates
- Handling painting or flooring when needed
- Preparing the property for marketing
- Advertising
- Showing the property
- Processing applications
- Preparing the next lease
- Completing security deposit accounting within applicable requirements
The longer the turnover takes, the longer the property may remain without rental income.
Having established procedures and reliable vendors can make a significant difference.
Don’t Forget the Value of Your Own Time
This is one of the costs landlords often overlook.
Suppose you spend several hours each month responding to tenants, coordinating maintenance, tracking payments, maintaining records and dealing with other property-related issues.
Now consider the additional time required when a tenant moves out.
On top of that, an unexpected repair can require even more of your attention.
Finally, consider the time involved in showing the property and screening applicants.
Even if you never write yourself a check for that time, your time still has value.
The question isn’t simply whether you can manage your rental property.
You probably can.
The better question may be:
Is managing the property the best use of your time—and do you still want to do it?
You Don’t Have to Wait Until Your Tenant Moves Out
This is something many self-managing landlords don’t realize.
If your rental property is currently occupied, you may not necessarily have to wait until the tenant moves out before talking with a property management company.
Depending upon the circumstances, First Landing Realty may be able to assume management during an existing tenancy.
Before doing so, we would want to understand the current situation and review available documentation, which may include:
- The existing lease and addenda
- Tenant information
- Rent and payment history
- Security deposit records
- Property condition documentation
- Maintenance history
- Outstanding maintenance requests
- Existing notices or agreements
- Any current lease or tenancy concerns
Taking over an occupied property isn’t simply a matter of telling the tenant to start sending rent somewhere else.
A good transition requires reviewing what is already in place, identifying any outstanding issues and establishing clear communication with both the owner and tenant.
Once we understand the situation, we can explain what would be involved in transitioning the day-to-day management of the property from you to our team.
When Does Professional Property Management Make Sense?
Professional management isn’t necessary for every rental property owner.
If you enjoy managing your rental, have the time to do it, maintain good records, have dependable contractors and are comfortable keeping up with your responsibilities as a Virginia landlord, self-management may continue to work well for you.
On the other hand, professional management may be worth considering if:
- You’re tired of being the tenant’s primary point of contact.
- You’re spending too much time coordinating repairs.
- You’ve moved away from Hampton Roads.
- You’re concerned about keeping up with changing requirements.
- You’re uncomfortable handling tenant screening or lease issues.
- You don’t have reliable contractors.
- You’re having difficulty managing an existing tenant.
- You simply want your rental property to feel more like an investment and less like a second job.
Sometimes the deciding factor isn’t a major problem.
It’s simply reaching the point where you say:
“I don’t want to manage this myself anymore.”
And that’s a perfectly reasonable reason to explore your options.
What Does a Property Manager Actually Take Off Your Plate?
Professional property management can include much of the day-to-day operation of the rental, including:
Rental Analysis & Marketing
Helping establish an appropriate rental price, marketing the property and coordinating prospective tenant inquiries.
Applicant Screening
Processing applications using established qualification and screening procedures.
Lease Administration
Preparing lease documentation, renewals and other routine tenancy paperwork.
Rent Collection & Accounting
Collecting rent, maintaining property accounting records and providing owner statements.
Tenant Communication
Serving as the primary point of contact for routine tenant questions, maintenance requests and lease-related matters.
Maintenance Coordination
Receiving maintenance requests, coordinating vendors and communicating with the owner regarding repairs.
Property Oversight
Conducting applicable move-in, move-out and periodic property surveys and documenting property conditions.
Lease Compliance
Addressing applicable lease concerns and coordinating appropriate notices and procedures.
The owner still owns the property and makes important ownership decisions.
The difference is that you have a professional management team handling much of the day-to-day operation.
So, Does Property Management Actually Cost Less?
There isn’t an honest one-size-fits-all answer.
A landlord who has an excellent tenant, rarely experiences maintenance issues, has plenty of time and enjoys managing the property may spend less in direct management fees by doing it themselves.
But management fees shouldn’t be evaluated in isolation.
Consider them alongside the potential costs of:
extended vacancy, poor pricing, turnover delays, your time, maintenance coordination, administrative mistakes and the responsibility of keeping up with an increasingly regulated rental environment.
For many property owners, professional management isn’t simply an expense.
It’s a decision about what responsibilities they want to continue handling themselves.
Tired of Managing It Yourself?
You don’t have to decide today whether professional property management is right for you.
If you’re currently self-managing a rental property in Hampton Roads, we’re happy to learn a little about your property, your current tenant situation and what’s making you consider a change.
First Landing Realty has provided property management services to Hampton Roads property owners for more than 35 years.
We’ll explain how our management process works, what we would need if you’re transitioning an existing rental to us, and answer your questions so you can decide whether professional management makes sense for your situation.
No pressure. Just straightforward information so you can make an informed decision about your property.
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First Landing Realty provides professional property management services in Virginia Beach, Chesapeake, Norfolk, Portsmouth, Suffolk, Hampton and surrounding Hampton Roads communities.
