When you own rental property, the math seems simple: why pay someone 10% to manage your property when you can do it yourself and pocket that money?
I get it. I’ve been in the property management business for 19 years, and I hear this all the time from property owners in the Lansing area. On paper, DIY property management looks like the smart financial move.
But here’s what I’ve learned after managing 250+ properties: the real costs of self-managing aren’t on any spreadsheet.
Let me break down the five hidden costs that make DIY property management far more expensive than most owners realize.
- Your Time (And What It’s Actually Worth)
The Hidden Cost: Most property owners drastically underestimate the time commitment.
Let’s do the math. Managing one rental property takes approximately:
- 2-3 hours per month for routine tasks (rent collection, communication, bookkeeping)
- 5-10 hours per tenant turnover (marketing, showings, screening, lease signing)
- 3-5 hours per maintenance issue (coordinating repairs, getting quotes, scheduling)
- 10-15 hours per eviction (if needed)
That’s 30-50+ hours per property per year — and that’s if everything goes smoothly. Now ask yourself: What’s your time worth? If you make $50/hour at your day job, that’s $1,500-$2,500 in opportunity cost per property annually. Suddenly that 10% management fee ($1,200/year on a $1,000/month rental) doesn’t look so bad.
The Real Question: Are you spending your time making money, or are you spending money (in lost opportunities) to save a management fee?
2. Costly Mistakes From Lack of Experience
The Hidden Cost: One mistake can wipe out years of “savings.” Property management isn’t just about collecting rent. It’s about:
- Legal compliance (Fair Housing laws, local ordinances, lease requirements)
- Proper tenant screening (background checks, credit reports, income verification)
- Maintenance knowledge (knowing what’s urgent vs. what can wait)
- Eviction procedures (following exact legal processes)
I’ve seen DIY landlords make $5,000-$10,000 mistakes because they:
- Accepted a tenant with bad credit who stopped paying after month two
- Violated Fair Housing laws and faced discrimination lawsuits
- Delayed maintenance that turned a $300 repair into a $3,000 emergency
- Botched an eviction process and had to start over (adding 2-3 months of lost rent) Our track record: 80%+ client retention for over 7 years because we’ve learned these lessons so you don’t have to.
3. Emergency Response and After-Hours Availability
The Hidden Cost: Your peace of mind and personal boundaries. When you self-manage, you’re on call 24/7/365.
Tenants don’t just have emergencies during business hours:
- Burst pipes at 2 AM
- Furnace failures on Christmas Eve
- Lockouts on Sunday mornings
At Simply Live, we have a 24/7 emergency line with an on-call handyman rotation. Our team handles flood, fire, or life-threatening situations immediately — so our clients don’t sacrifice family dinners, vacations, or sleep.
The question: What’s it worth to NOT get a panicked call at midnight? What’s it worth to actually enjoy your weekend without checking your phone every 20 minutes? Most DIY landlords burn out within 2-3 years because they can’t set boundaries. They’re always “on.”
- Vendor Relationships and Pricing Power
The Hidden Cost: You’re paying retail prices for everything.
When you manage one or two properties, you don’t have leverage with contractors. You’re calling around for quotes, waiting days for callbacks, and paying full retail prices for:
- Plumbing repairs
- HVAC maintenance
- Appliance replacements
- Cleaning and turnover services
- Lawn care and snow removal
Our advantage: We manage 158 properties. That means:
- We have trusted vendors on speed dial who prioritize our work orders
- We get volume discounts (often 15-25% below retail)
- We price-shop every two years to ensure competitive rates
- We require $1M+ insurance from all vendors (protecting you from liability)
- We handle 95% of maintenance in-house, saving thousands in markup
Example: A tenant’s furnace goes out in January. A DIY landlord might pay $3,500 for an emergency replacement. We have vendor relationships that get the same unit installed for $2,400 — and it’s done within 24 hours.
- Vacancy Costs From Slow Turnovers
The Hidden Cost: Every extra week a property sits empty costs you money.
The average DIY landlord takes 45-60 days to fill a vacancy:
- 1-2 weeks to realize the tenant is leaving
- 1-2 weeks to clean and repair the property
- 2-3 weeks to market and show the property • 1-2 weeks for screening and lease signing
That’s 2 months of lost rent — $2,000-$3,000 per turnover on a typical Lansing rental.
Our process: We turn properties in 2 weeks or less and fill vacancies in 30 days or less. Our vacancy rate is under 2%.
How?
- We know a tenant is leaving 60 days in advance (proper lease management)
- We have a trained in-house maintenance team ready to go
- We have marketing systems in place (Zillow, Facebook, Google)
- We have a proven screening process that moves fast without cutting corners
The math: If you avoid just ONE extra month of vacancy per year, that’s $1,000-$1,500 saved — which covers most of the annual management fee.
The Bottom Line: What DIY Really Costs
Let’s add it up for one rental property generating $1,000/month:
- Time opportunity cost: $1,500-$2,500/year
- One costly mistake: $5,000-$10,000 (every few years)
- Higher vendor pricing: $500-$1,000/year
- Extended vacancy: $1,000-$1,500/year
- Stress and burnout: Priceless
Total hidden costs: $8,000-$15,000+ per property over a few years.
Professional management fee: $1,200/year (10% of $12,000 annual rent).
When DIY Makes Sense (And When It Doesn’t)
DIY might work if:
- You own ONE property and live next door
- You have maintenance skills and free time
- You genuinely enjoy property management tasks
- You’re willing to learn the legal requirements Professional management makes sense if:
- You own multiple properties
- You have a full-time job or business
- You value your time and peace of mind
- You want to scale your portfolio
- You’re tired of after-hours emergencies
Our Approach: Transparent, Flexible, and Relationship-Focused
At Simply Live, we operate differently:
- 10% management fee or $100/month minimum (as low as 8% for apartment buildings)
- No placement fees or hidden costs — our cost is your cost
- Month-to-month contracts — no long-term commitment required
- 95% in-house maintenance — faster response, better pricing
- 80%+ client retention — our clients stay because we deliver results
We serve rental property owners in the Lansing tri-county area. Our average client owns five properties, but we work with everyone from first-time landlords to investors with 100+ units.
Ready to Stop Losing Money on DIY?
If you’re spending more time managing properties than growing your portfolio, it’s time to rethink your strategy.
Free 20-minute consultation: Let’s talk about your properties, your goals, and whether professional management makes sense for you. No pressure, no obligations — just honest advice from someone who’s been doing this for 19 years.
The question isn’t whether you CAN manage your properties yourself. The question is whether you SHOULD.
Your time, your peace of mind, and your financial goals deserve better than 2 AM emergency calls and costly mistakes.
Let’s talk. Simply Live LLC | Lansing Tri-County Property Management Phone: [ (517) 258-0349] | Serving rental property owners in Michigan’s tri-county area for 19 years
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