Managing Rentals Without Losing Your Mind – From DIY to Hybrid to Professional Help

Sep 24

What Property Management Really Is (and Why It Matters)

Property management is everything that happens after you buy a rental property. It’s advertising the home, screening tenants, collecting rent, coordinating repairs, handling emergencies, inspecting the property, renewing leases, paying bills, and keeping records, and all the things in between. In short - it’s the work that turns a house into a functioning business.

And it matters more than most new investors realize. How you manage your rentals determines not only their long-term success, but also their year-to-year performance. A property that’s poorly managed won’t cash flow the way you expected, and over time it won’t build wealth the way you hoped.

Here’s the reality: owning residential rental property can be messy business. If you’re not willing to get your hands dirty now and then - literally and figuratively - this might not be the right wealth-building strategy for you. But for those who are willing, property management is where the investment becomes real.

The Management Paths: From Doing It All to Getting Support

Once you understand what property management entails, the question becomes: who’s going to do all this work?

There are three main approaches:

1. Self-Management (DIY)

With self-management, the landlord wears all the hats. You are the leasing agent, the bookkeeper, the maintenance coordinator, the collections department, and the problem-solver on call 24/7.

For some, this works. It gives you maximum control and keeps management costs low. You know exactly what’s going on in your property because you’re the one handling every detail.

But it also comes at a cost: your time, your energy, and sometimes your peace of mind. Even with one or two properties, the late-night calls and constant coordination can wear you down. And let’s be clear - if you’re a softy, this approach may not be for you. You are running a business, not a charity. That means you must be firm about collecting rent and enforcing the lease, even when it feels uncomfortable.

Best for: Local investors with one or two rentals who enjoy being hands-on and want to squeeze every dollar of cash flow.

2. Third-Party Property Management (Fully Outsourced)

On the other end of the spectrum, you can hire a property management company to handle everything for you. They market the property, screen tenants, collect rent, coordinate repairs, handle inspections, and even manage evictions if necessary.

This model can be a lifesaver for investors who don’t have the time or desire to be involved. But it’s not without trade-offs. You’ll pay management fees (often 8-10% of monthly rent plus leasing fees) that cut into your cash flow, and in many cases, your property-level expenses may also be higher than they need to be.

Why? Because when you outsource, you’re relying on someone else’s judgment and vendor network. You may not know:

Are the “right” repairs being done, or just the most convenient?
Was the work done well, or will it need to be redone in a few months?
Are you being charged fairly, or paying a premium for markups?

The cheapest fix isn’t always the best fix, but without visibility into the details, it’s easy to overpay for repairs and maintenance. Over time, those higher expenses eat into your returns and reduce your property’s overall performance.

Best for: Investors who want a truly passive experience and are willing to trade some profit margin for fewer headaches.

3. The Hybrid Model (Active Oversight with Support)

Between full DIY and full outsourcing lies the hybrid model. This is the approach we’ve used successfully for years, and it offers the best of both worlds: freedom from the trenches with continued control over performance.

In this model, you stay in the driver’s seat but build a support system around you. For example:

A part-time “boots on the ground” person handles calls, repairs, inspections, and day-to-day coordination.
A part-time back-office person manages the accounting: booking rent, paying bills, and running reports.
You oversee the operation by setting standards, reviewing reports, and making the big decisions.

The key here is systems and consistency - property management software (we’ve used Propertyware, but there are many options), a reliable vendor network, and standardized processes for collections, renewals, insurance management, repairs and all the things. With standard procedures and defined systems in place, you can scale your portfolio without losing visibility.

Why Active Management Matters

No matter which model you choose, the key is active management. Owning rental property is a business, and like any business, you rise or fall to the level of your systems.

Maximize revenue: rent must be collected consistently, with clear processes for late payments and renewals.
Control expenses: make the right repairs - those that preserve value and prevent bigger problems - while avoiding unnecessary costs.

Passive owners often see their rentals underperform. Active owners, whether DIY, hybrid, or with oversight of a management company, are the ones who build lasting wealth.

Final Thoughts

Buying right sets you up for success, but managing right keeps you there. Whether you self-manage, outsource, or build a hybrid system, the goal is the same: protect your investment, maximize returns, and keep your tenants happy.

At Sarah Lee Living, our mission is to Educate, Empower, and Serve through real estate. That means guiding clients not only in what to buy, but how to manage it effectively for long-term wealth.

👉 Wondering which management path is right for you? Let’s talk. You never know, purchasing your first investment property could be right around the corner!