Discount stock brokerages like Robinhood, Charles Schwab, and Fidelity let you trade with low or zero commissions and no-account minimum. The tradeoff is that you’re on your own, with no one to advise you or manage your portfolio.
Discount property management works the same way, except the asset on the line is your home. Lower management fees mean fewer property inspections, slower maintenance repairs, and little to no cleaning between tenants. Oppositely, full-service management handles everything from tenant screening to rent collection, maintenance, and move-outs. It costs more, but far less than the alternative. Two properties we saw this year show why.
The Unkept Vacant Property
When we arrived, the front door was unlocked and the keys didn’t work. The owner was interested in our services, and once inside, it was obvious how little effort the previous managers had put in. We found scratches beyond normal wear and tear, boxes and tools left behind, and trash in the fridge.
That kind of neglect costs owners in three ways:
- Safety and liability. An unsecured door puts the property and future tenants at risk. Locks should be rekeyed between every tenant.
- Damage costs. Without move-in and move-out inspections, an owner can’t prove damage and charge it to the tenant’s security deposit.
- Vacancy. A dirty property should not be shown, while waiting for cleaning, more time goes by without rent payments. And if a dirty property is shown, prospective tenants may be discouraged to rent it.
First impressions mean everything, which is why we hold clear standards for turnover: cleaning, repairs, trash removal, and rekeying. Every new tenant should walk into a home that’s clean, secure, and ready to live in.
The Personally Managed Property
Earlier this year, an owner considered our services but chose to manage her rental herself. At first, it worked: she found tenants and got them moved in. Then the tenants stopped paying rent. With nothing coming in to cover the mortgage, she had to evict them and eventually sell the house.A professional manager would have handled:
- Tenant screening: Checking credit, income, and rental history. Many evictions start with weak screening, not the first missed payment.
- Rent collection: Following up on late rent right away, before a tenant falls far behind.
- Evictions: The process requires specific notices and court filings and can take months, with no rent coming in.
Being your own landlord isn’t as easy as it seems. If you self-manage, make sure you’re prepared so you don’t end up in the negatives.
The Real Cost
A low management fee is easy to compare. Vacancies, damage, and unpaid rent are harder to visualize until you’re stuck paying for them. Cheap management isn’t professional, and professional management isn’t cheap, but it costs far less than the alternative.
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