Let’s settle this once and for all.
You’re looking at your rental property, doing the math in your head. A property management company wants 10% of your monthly rent. That’s $1,200 per year on a $1,000/month rental.
“Why would I pay someone $1,200 to do something I can do myself?” It’s a fair question. And it deserves a fair answer — with real numbers, not sales pitches. I’ve been managing properties in the Lansing area for 19 years. I’ve seen hundreds of property owners try DIY, and I’ve managed 158 properties professionally. I know exactly what both paths cost.
So let’s break down the real numbers. No fluff, no exaggeration. Just honest math so you can make an informed decision.
The Simple Math (What Most People See)
Here’s what most property owners calculate when deciding between DIY and professional management:
DIY Property Management
- Management fee: $0
- Annual savings: $1,200
Professional Property Management
- Management fee: $1,200/year (10% of $12,000 annual rent)
- Annual cost: $1,200
On the surface, DIY wins by $1,200 per year.
But that’s not the real math. Not even close.
The Real Math (What Actually Happens)
Let’s break down what property management actually costs when you factor in everything:
Year 1: DIY Property Management
Direct Costs: – Tenant screening services: $150 – Marketing/advertising: $200 – Legal forms and lease templates: $100 – Maintenance coordination time: 40 hours × $50/hour = $2,000 – Rent collection and bookkeeping: 24 hours × $50/hour = $1,200 – Property inspections: 12 hours × $50/hour = $600 – Tenant communication: 20 hours × $50/hour = $1,000
Subtotal: $5,250 Indirect Costs: – Higher vendor pricing (no volume discounts): +$500 – Longer vacancy (45 days vs. 30 days): +$500 – After-hours emergency stress: Priceless
Total Year 1 DIY Cost: $6,250+
Year 1: Professional Property Management
Direct Costs: – Management fee: $1,200 That’s it.
Total Year 1 Professional Cost: $1,200 Year 1 Difference: You’re paying $5,000+ MORE to do it yourself.
The 5-Year Comparison (Where It Gets Interesting)
Most property owners don’t just own properties for one year. Let’s look at the real costs over five years.
DIY: 5-Year Total Cost
Annual recurring costs: – Time investment: 96 hours/year × $50/hour × 5 years = $24,000 – Vendor premium (no volume discounts): $500/year × 5 years = $2,500 Extended vacancies: $500/year × 5 years = $2,500
One-time mistakes (conservative estimate): – One bad tenant: $8,000 – One delayed maintenance issue: $2,000 – One botched eviction or legal mistake: $3,000 5-Year DIY Total: $42,000
Professional Management: 5-Year Total Cost
Annual management fee: – $1,200/year × 5 years = $6,000 5-Year Professional Total: $6,000 5-Year Difference: DIY costs you $36,000 MORE than professional management.
Breaking Down the Hidden Costs
Let’s dig deeper into where DIY landlords actually lose money:
- Time Investment (The Biggest Cost)
Monthly time requirements per property: – Rent collection and follow-up: 1 hour Tenant communication: 2 hours – Bookkeeping: 1 hour – Vendor coordination: 1 hour Property drive-bys: 1 hour
Monthly total: 6 hours Annual time investment: 72 hours Plus non-routine tasks: – Tenant turnover: 20 hours – Maintenance emergencies: 10 hours – Lease renewals: 4 hours
Total annual time: 96-120 hours per property If your time is worth $50/hour: 100 hours × $50 = $5,000/year If your time is worth $75/hour: 100 hours × $75 = $7,500/year If your time is worth $100/hour: 100 hours × $100 = $10,000/year Professional management saves you 100+ hours per year per property.
- Vendor Pricing (Volume Discount Gap)
When you manage one or two properties, you pay retail prices. When we manage 158 properties, we get volume discounts.
Real examples from our vendor relationships:
HVAC repair: – DIY landlord pays: $350 – Our price: $250 – Savings: $100 per service call Plumbing repair: – DIY landlord pays: $200 – Our price: $140 – Savings: $60 per service call
Carpet cleaning: – DIY landlord pays: $150 – Our price: $100 – Savings: $50 per cleaning
Appliance replacement: – DIY landlord pays: $800 – Our price: $600 – Savings: $200 per appliance
Average savings: $500-$1,000 per year per property
We also handle 95% of maintenance in-house, which eliminates contractor markup entirely.
- Vacancy Costs (Speed Matters)
DIY average vacancy timeline: 45-60 days
Our average vacancy timeline: 30 days or less
The cost difference on a $1,000/month rental: – DIY: 60 days vacant = $2,000 lost rent – Professional: 30 days vacant = $1,000 lost rent – Difference: $1,000 saved per turnover
Why we’re faster: – We know tenants are leaving 60 days in advance – Professional photos and listings ready in 24 hours – Automated marketing (Zillow, Facebook, Google) – Efficient showing process – Same-day application processing – 2-week property turnovers
Our vacancy rate: Under 2%
- Mistake Prevention (The Insurance Value)
DIY landlords make expensive mistakes. We don’t (or rarely do, because we’ve already made them).
Common mistakes and their costs:
Bad tenant accepted: $5,000-$15,000 Botched eviction: $3,000-$8,000 Fair Housing violation: $10,000-$100,000 Delayed maintenance: $2,000-$10,000 Poor lease agreement: $2,000-$5,000 Conservative estimate: One major mistake every 3-5 years = $2,000-$5,000/year in risk Professional management eliminates most of this risk through: – Rigorous tenant screening (3x rent income, background checks, references) – Legal compliance expertise (Fair Housing, Michigan landlord-tenant law) – Fast maintenance response (95% in-house, 24-hour response) – Attorney-reviewed lease agreements – 19 years of experience
The Real Comparison: Apples to Apples
Let’s compare DIY vs. Professional management for one property over one year, accounting for everything:
DIY Property Management (Annual)
Cost Category Your time (100 hours × $50/hour) Vendor premium (retail pricing) Extended vacancy (15 extra days) Screening/marketing services Risk buffer (mistakes) After-hours stress TOTAL ANNUAL COST
Amount $5,000 $500 $500 $200 $1,000 Priceless $7,200+
Professional Management (Annual)
Cost Category Management fee (10%) TOTAL ANNUAL COST
Amount $1,200 $1,200
Annual difference: $6,000 saved with professional management Multiple Properties: When the Math Gets Crazy
The more properties you own, the more expensive DIY becomes.
3 Properties: DIY vs. Professional (Annual)
DIY Total Cost: – Time: 300 hours × $50/hour = $15,000 – Vendor premiums: $1,500 Extended vacancies: $1,500 – Mistake buffer: $3,000 – Total: $21,000/year
Professional Management: – 3 properties × $1,200 = $3,600/year Annual savings with professional: $17,400
5 Properties: DIY vs. Professional (Annual)
DIY Total Cost: – Time: 500 hours × $50/hour = $25,000 – Vendor premiums: $2,500 Extended vacancies: $2,500 – Mistake buffer: $5,000 – Total: $35,000/year
Professional Management: – 5 properties × $1,200 = $6,000/year Annual savings with professional: $29,000 The more properties you own, the more insane DIY becomes.
What You’re Actually Buying
When you pay $1,200/year for professional management, here’s what you’re really getting:
Systems & Technology
- AppFolio property management software ($200/month value)
- Automated rent collection and late fee processing
- Online tenant portal (maintenance requests, payments, communication)
- Financial reporting and analytics
- Document storage and lease management
Value: $2,400/year
Professional Team
- Dedicated property manager (your single point of contact)
- Licensed handyman team (95% in-house maintenance) • 24/7 emergency response line
- Administrative support for tenant communication
- Legal compliance expertise
Value: $3,000/year
Vendor Network
- Trusted contractors with $1M+ insurance
- Volume pricing (15-25% below retail)
- Priority scheduling for our properties
- Quality control and warranty management
- Price-shopping every 2 years
Value: $1,000/year
Experience & Expertise
- 19 years in business
- 158 properties managed
- Hundreds of tenant placements
- Minimal evictions (proper screening)
- 80%+ client retention for 7+ years
Value: Priceless Total value delivered: $6,400+ per year Your cost: $1,200 per year You’re getting $5+ in value for every $1 you spend.
When DIY Actually Makes Sense
I’ll be honest with you: DIY isn’t always the wrong choice. Here’s when it might work:
DIY Makes Sense If:
✅ You own ONE property (not building a portfolio)
✅ You live next door or very close to the property
✅ You have maintenance skills and tools
✅ You have flexible time during business hours
✅ You genuinely enjoy property management tasks
✅ Your time has low opportunity cost (retired, between jobs, etc.)
✅ You’re willing to learn legal requirements (Fair Housing, landlord-tenant law)
If you check 5+ of these boxes, DIY might work for you.
Professional Management Makes Sense If:
✅ You own 2+ properties
✅ You have a full-time job or business
✅ You value your time at $30/hour or more
✅ You want to scale your portfolio
✅ You’re tired of being on call 24/7
✅ You live far from your properties
✅ You’d rather focus on acquisition than operations
If you check 3+ of these boxes, professional management will save you money.
The Break-Even Analysis
Here’s the simple question: What does your time need to be worth for professional management to make financial sense?
The math: – Management fee: $1,200/year – Time saved: 100 hours/year Break-even hourly rate: $12/hour If your time is worth more than $12/hour, professional management pays for itself on time savings alone.
Add in: – Vendor discounts: $500/year – Faster vacancy fills: $500/year – Mistake prevention: $1,000+/year Actual break-even rate: $0/hour Professional management literally pays for itself, even if your time is worth nothing.
Real Client Example: The Comparison
Let me share a real example (details changed for privacy).
Client: Sarah, owns 4 rental properties in Lansing
Before Simply Live (DIY for 3 years)
Annual costs: – Her time: 400 hours × $75/hour = $30,000 – One bad tenant (Year 2): $9,000 – Extended vacancies: $2,000/year = $6,000 – Higher vendor costs: $800/year = $2,400 – Stress and burnout: Considering selling properties
3-Year DIY total: $47,400
After Simply Live (3 years with us)
Annual costs: – Management fees: 4 properties × $1,200 = $4,800/year 3-Year professional total: $14,400
Sarah’s savings: $33,000 over 3 years More importantly: Sarah bought 2 more properties with the time she got back. She’s now building wealth instead of managing toilets.
The Opportunity Cost Nobody Talks About
The real cost of DIY isn’t just the money and time you spend. It’s what you DON’T do with that time.
What Could You Do With 100 Hours Per Year?
If you’re building a portfolio: – Analyze 50+ potential investment properties – Build relationships with 10+ real estate agents – Attend 12 investor meetups – Close on 1-2 additional properties
If you’re a business owner: – Launch a new product or service – Hire and train a new team member – Build a marketing funnel – Close 3-5 more deals If you value life balance: – Take 2 weeks of actual vacation – Attend every one of your kids’ games – Get in the best shape of your life – Actually enjoy your weekends
The question: Are you managing properties, or are you building wealth?
Our Approach: Transparent, Flexible, Results-Driven
At Simply Live, we’ve been doing this for 19 years. Here’s how we’re different:
Pricing
- 10% management fee or $100/month minimum
- As low as 8% for apartment buildings or multiple properties
- No placement fees
- No hidden costs — our cost is your cost
- Month-to-month contracts — no long-term commitment
Results
- 158 properties managed in the Lansing tri-county area
- 80%+ client retention for over 7 years
- Under 2% vacancy rate
- 30 days or less to fill vacancies
- 2 weeks or less for property turnovers
- 95% in-house maintenance (faster, cheaper, better)
Philosophy
- Work ON your business, not IN it
- Build systems so you’re not the bottleneck
- Focus on relationships, not transactions
- Transparent communication always
We don’t just manage properties. We help you build wealth.
The Bottom Line: What’s It Really Worth?
Let’s summarize the real annual cost comparison for one property: DIY Property Management: – Direct costs: $7,200+ – Stress and burnout: High – Time commitment: 100+ hours – Risk exposure: High – Scalability: Low
Professional Management: – Direct costs: $1,200 – Stress and burnout: None – Time commitment: 0 hours – Risk exposure: Low – Scalability: High
Annual savings with professional management: $6,000+ The math is clear. Professional management isn’t an expense — it’s an investment that pays for itself many times over.
Ready to See Your Numbers?
Every property owner’s situation is different. Your properties, your time value, your goals — they all matter.
Free 20-minute consultation: Let’s run YOUR numbers together. We’ll look at your specific properties and calculate exactly what DIY is costing you vs. what professional management would cost.
No pressure, no obligations — just honest math and real advice from someone who’s been doing this for 19 years.
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.
The question isn’t whether you CAN manage your properties yourself. The question is: What’s the best use of your time and money?
Let’s find out together.
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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