Should You Hire a Management Company to Rent Your House?

Turning your home into a rental can be a smart investment, but managing that rental yourself might not be. If you own a rental home, the big question is: Should I hire a management company to rent my house?

Let’s examine what a property management company does, including the pros and cons of hiring one and how to decide if it’s the right fit for your situation.

What Does a Property Management Company Do?

A property management company handles all the daily tasks of renting out your property. This includes finding and screening tenants, collecting rent, handling maintenance and repairs, and ensuring your rental follows all local and state laws. 

Here’s what a full-service property manager typically provides:

• Tenant Placement: Marketing the property, screening applicants, handling showings, and preparing leases.
• Rent Collection and Accounting: Ensuring consistent payment and providing transparent financial reporting.
• Maintenance Coordination: Managing repairs, routine maintenance, and emergency calls, day or night.
• Legal Compliance: Navigating fair housing laws, lease enforcement, and eviction procedures.
• Property Inspections: Conducting regular walkthroughs and documenting property conditions.

A strong property management company doesn’t just watch over your property. They actively work to protect your investment and improve its performance.

Pros of Hiring a Property Management Company

There’s a reason so many Northern California landlords (especially busy professionals and long-distance owners) turn to property managers. The right team can make rental ownership far less stressful and more profitable.

Here are some of the biggest benefits of property management companies:

• Less Stress, More Time Back: Between tenant calls, coordinating repairs, and tracking down late rent, managing a rental can feel like a second job. A management company takes all of that off your plate.
• Stronger Tenant Screening: Professional property managers have access to advanced screening tools that evaluate credit, background, income, rental history, and more. That means fewer problems and more consistent rent payments.
• Reliable Maintenance and Emergency Response: Maintenance is one of the most stressful parts of rental ownership, but it doesn’t have to be your problem. A great property management company will handle all emergency maintenance, day or night.
• Better Rent Collection Systems: Late rent can disrupt your income. Property managers have clear processes for rent collection and late fees, and they follow through.
• Legal and Lease Compliance: Fair housing laws, habitability standards, and lease agreements are a lot to keep up with. Your manager knows the local laws, follows best practices, and keeps your property in compliance to help you avoid legal risks.

Together, these benefits make owning a rental property easier, more profitable, and far less stressful and time-consuming.

Cons of Hiring a Property Management Company

Even though a property manager has many benefits, it’s important to note that it’s not the right fit for every owner. Here are a few potential downsides to consider:

• Monthly Fees: Most property management companies charge a percentage of the monthly rent, usually between 8% and 12%. There may also be leasing fees, renewal fees, or maintenance markups. If you’re comparing options and wondering how much property managers charge, it’s important to review the full pricing structure.
• Less Direct Control: When you hire a management company, they take the reins. If you prefer to be highly involved in every decision, this may be a drawback.
• Varying Quality Between Companies: Not every property management company is a good one or the right fit for you. So it’s crucial to do your research, read reviews, and choose a team with a strong reputation and clear systems.

Weighing these potential drawbacks against the benefits will help you decide if professional management aligns with your goals and comfort level.

When Does It Make Sense to Hire a Property Manager?

For many homeowners, the decision comes down to lifestyle, location, and investment goals. If any of the situations below apply to you, hiring a property manager is likely the smartest move.

You Live Out of Town

Managing a rental from a distance can lead to delays, missed issues, and unhappy tenants. Without a local network for repairs or someone nearby to check on the property, even small problems can escalate. A local property manager acts as your on-the-ground support, making sure everything runs smoothly and your tenants have what they need.

You Own Multiple Rentals

Handling multiple properties means juggling maintenance, rent collection, tenant communication, and compliance all at once. A property manager brings systems and support to help you manage your portfolio efficiently, so you can grow your investments without burning out.

You Don’t Have Time or Experience

Rental ownership comes with a steep learning curve. If your schedule is full or you’re unfamiliar with fair housing laws, lease terms, or repair coordination, it’s easy to feel overwhelmed. A professional manager brings the knowledge, tools, and availability to handle everything on your behalf.

You Want More Consistent Income

Profitability depends on steady rent and well-maintained units. A property manager works to fill vacancies quickly, enforce lease terms, and maintain the property so tenants stay longer. This reduces income gaps and helps protect your long-term returns.

Property Management vs. Self-Management: What to Expect

Some landlords choose to manage their rentals themselves, and for a small percentage, it works. However, it’s important to understand what you’re signing up for.

Self-management gives you complete control, but it also puts every responsibility squarely on your shoulders. Here’s what you’ll need to handle on your own:

• Marketing and Showings: You’ll be responsible for creating a listing, screening inquiries, scheduling tours, and showing the property. That includes answering weekend questions or taking time off work to let prospective tenants do tours.
• Tenant Screening and Leasing: You must run background checks, verify income and employment, and decide who to rent to. Then, you’ll need to create a legally sound lease and collect deposits.
• Rent Collection and Follow-Up: You’ll be the one tracking down late rent, enforcing fees, and managing any payment disputes.
• Maintenance Coordination: From fixing leaky faucets to handling midnight emergencies, you’ll either need to be handy yourself or have a list of reliable vendors ready to go.
• Legal Compliance and Notices: If a tenant stops paying or breaks the lease, it’s up to you to handle notices, documentation, and possibly eviction. Mistakes here can cost you thousands or land you in court.

Self-managing can save you money on fees, but it often costs you time, peace of mind, and consistency in your rental income.

Choose a Property Management Partner for Stress-Free Rental Ownership

At Hignell Property Management, we specialize in helping Northern California homeowners rent smarter, not harder. Whether you’re new to renting or tired of managing on your own, we’re here to simplify the process, protect your property, and keep your investment profitable.

If you want to stop worrying about what could go wrong with your rental and start seeing what could go right, contact us today to learn how we can save you time, reduce stress, and maximize your rental income.