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7 Top Reasons Not To Manage Your Property By Yourself

 

So you’ve just invested in a beautiful property, and you’re thinking, “Hmmn, I can actually manage this myself and save some cash, can’t I?” 

Hollup. 

The allure of self-managing your property is undeniable. You’re in control, you call the shots, and even better — you’re saving money. 

Truth is…property management is not as easy as it looks.

With a rental property comes great responsibility – whether a short-term rental or a long-term lease. In this blog, you’ll discover the top reasons not to manage property by yourself. 

Shall we?


The 7 Top Reasons to Avoid Self-Managing Your Property

 

1. High Time Commitment

Self-managing a property requires time, often more than you may anticipate. Here’s a breakdown of the time-consuming tasks involved:

  • Tenant screening and selection: For long term leases, you’ll need to conduct background checks, verify employment and income, check references, and even interview potential tenants. On average, this can take 3-5 hours per applicant.
  • Rent collection and financial management: Chasing late payments isn’t fun. Neither is bookkeeping. Add in tax preparation, and you’re looking at several hours for long term leases.
  • Property maintenance and repairs: If you’re managing a short term rental, you’ll need active maintenance – which is a time sink that never ends. Coordinating routine maintenance, responding to repair requests, and overseeing work quality can consume 5-10 hours per month. Even more – depending on your property’s age and condition.

 

2. Legal Risks and Compliance Issues

Many cities have specific rules that must be followed, especially with short-term rentals. 

For example, in Dubai, landlord-tenant laws can vary by jurisdiction and often include lease agreements, security deposits, and eviction procedures. Improper evictions can lead to legal battles and financial penalties. 

According to the Dubai Land Department, there were over 500 rental disputes filed in 2022 alone. That’s a lot of headaches (and potential financial losses) that could have been avoided with proper legal knowledge or a property management company.

 

3. High Management Expenses

But I’m saving money by doing it myself!” 

Image showing a man frustrated from property management costs

Photo by: Nicola Barts

Are you though?

You may think you’re saving 10% by not hiring a property manager. Turns out, you can be losing 15% through management inefficiencies. Here are some hidden property management expenses that can reduce your profit:

  • Property management software: Excel sheets alone won’t cut it. You’ll need professional management software for lease management, accounting, and overall maintenance — which can cost anywhere from $50-$200 per month. With a property management company, this will be reduced drastically, as they’ll always get bulk discounts.
  • Marketing expenses: Professional photos, virtual tours, and listings don’t come cheap. High-quality photos, virtual tours, and advertising on multiple platforms can cost you anywhere from $200-$500 per listing. And that’s being pretty conservative.
  • Higher vacancy rates: Not necessarily “expense” related, but every day your property sits empty, money goes down the drain. Self-managed properties often experience higher vacancy rates due to less efficient marketing and tenant placement. Even a 5% increase in vacancy can significantly impact your annual revenue.


4. Potential Tenant Challenges

Managing a property isn’t just the “property” itself. There are guests or tenants at the other end of the spectrum. You’ll need a sweet balance of professionalism, communication skills, and conflict resolution abilities.

Image showing a property owner at the door of a tenant

Photo by: Samuel Peter

For one, especially with long term rentals, you’ll need to establish and enforce clear rent collection policies. Late payments and bounced checks can disrupt your cash flow and require time-consuming follow-ups.

You’ll also need to promptly address maintenance issues so guests or tenants are highly satisfied. This requires a reliable network of contractors and the ability to prioritize and schedule repairs efficiently.

Mishandling these aspects of tenant management can lead to increased turnover, property damage, and potential legal disputes.


5. Maintenance and Repair Headaches

If you don’t maintain your property properly (what a tongue twister), the value of the property can depreciate FAST. 

Image showing a man fixing maintenance issues in an apartment

Photo by: Antoni Shkraba

Unless you’re jack-of-all-trades with infinite free time, you can face challenges like:

  • Lack of a reliable contractor network: Building relationships with quality, affordable contractors takes time and experience. Without this network, emergency repairs can be costly and time-consuming.
  • Quality control: How do you know if you’re getting quality work or a quick fix that’ll cost you more in the long run? Unless you have skin in the game, you can be easily exploited by contractors. That aside, ensuring repairs are done correctly and cost-effectively requires some local knowledge.
  • Preventive maintenance: Implementing an effective preventive maintenance schedule will prevent costly emergency repairs but requires planning and consistent execution.

The average property requires 1-3 maintenance requests per month. That’s potentially 36 headaches a year, minimum. Save yourself the trouble. Some things are best left to professionals.


6. Marketing Difficulties

Maintaining your property is one thing. Marketing it–is another.

Image showing a host creating marketing strategies for his short term rental

Photo by: Anastasia Shuraeva

Without good marketing experience or a reliable agency, it’ll be difficult to attract guests, and ultimately, increase your revenue. If you’re new to the game, here are some potential challenges you could face; 

  • Property listing strategies: Creating compelling listings that stand out in a crowded market requires marketing expertise.
  • Proper pricing: Setting the best pricing for your property requires in-depth market analysis and an understanding of seasonal trends. Too high, and you’ll scare off guests or tenants. Too low, and you’re leaving money on the table. The only way to avoid this potential problem is by using a pricing tool.


7. Emotional Toll and Stress

The psychological impact of self-managing a property is usually overlooked. 

Especially for short term rentals, you’ll need to be available almost 24/7 for potential emergencies. This can lead to chronic stress and sleep disturbances. Late rent, damages, evictions can also be emotionally draining. The constant need to make decisions about repairs or financial matters can lead to mental exhaustion as well. 

 

The Benefits of Professional Vacation Rental Management

Now let’s talk about the light at the end of the tunnel – using a property management service. Here are the benefits you can expect from handing over your property to a management company.

Image showing a happy man at his desk

Photo by: Andrea Piacquadio

  1. You’ll save time. With a good property management service, you’ll literally have your life back – and enough time to focus on other things in life.
  2. You’ll have all the legal work done for you. Sleep easy knowing experts are keeping you on the right side of the law.
  3. Efficient Tenant Management: No need to wake up in the middle of the night to respond to an Airbnb guest. Your property manager will handle all guest communications, tenant screening, rent collection, and even conflict resolution.
  4. You’ll benefit from professional rental strategies to minimize vacancies and optimize rental rates.
  5. You’ll easily expand your property portfolio without increasing your time commitment.

 

 

FAQs

 

1. How Can I Choose the Best Property Management Service In Dubai?

First, research companies with a proven history in your property type or strategy. Then, take some time to understand their fee structure and services offered. Read reviews and ask for references as well before making your final decision.

2. Can I Still Have Some Control If I Hire A Property Manager? 

Most property management companies offer customizable service packages. You can choose which aspects you want to handle yourself and which to delegate.

3. Is Airbnb Property Management Worth It For Just One Rental Property? 

Even with a single property, vacation property management can be worthwhile. The value comes from saving time, increased income, and reduced vacancies. PLUS the peace of mind from knowing your property is being managed by experts.

4. What Tasks Will I Still Need To Handle If I Hire A Property Manager? 

While property managers handle day-to-day operations, as the property owner, you’ll still be responsible for major decisions such as large-scale renovations or setting overall rental strategies. You’ll need to review regular financial and property reports, communicate your goals and preferences to the management team, and make decisions on significant expenses or changes to the property.

 

Outro

Managing your own property might seem like a money-saving move, but as we’ve seen, it can be a shortcut to stress, legal troubles, and even hidden costs.

Your property is an investment. Whether it’s a short-term rental, an Airbnb, or a long-term lease, the right property management service can turn your property into a source of joy and high revenue.

Take the first step towards freedom today. Your future self blood pressure will thank you.

 

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