Property Management Software vs Hiring a Property Manager: Which is Better?

As a landlord, you have two main options for managing your rental properties: use property management software yourself, or hire a professional property manager. Both have advantages and disadvantages. Here's how to decide which is right for you.

Understanding Your Options

Option 1: Property Management Software

What it is: Software platform that helps you manage properties yourself

You handle:

• Tenant communication
• Rent collection
• Maintenance coordination
• Lease management
• Financial tracking

Software provides:

• Tools and automation
• Organization systems
• Reporting and analytics
• Tenant portal
• Document management

Option 2: Property Manager

What it is: Professional service that manages properties for you

They handle:

• All day-to-day operations
• Tenant relations
• Maintenance coordination
• Rent collection
• Property marketing

You provide:

• Property ownership
• Major decisions
• Budget approval
• Strategic direction

Cost Comparison

Property Management Software

Monthly cost: $0-$100/month

• Free options available
• Low-cost plans: $10-$50/month
• Premium plans: $50-$100/month
• Per-unit pricing: $5-$15/unit

Additional costs:

• Payment processing fees: 2.9% + $0.30 per transaction
• Background check fees: $10-$50 per applicant
• Optional add-ons: $10-$50/month

Total annual cost: $0-$1,200/year

Your time investment: 5-15 hours/month

Property Manager

Monthly cost: 8-12% of monthly rent

• Typical fee: 10% of rent
• Example: $1,500 rent = $150/month
• Annual cost: $1,800/year per property

Additional costs:

• Leasing fees: 50-100% of first month's rent
• Renewal fees: 25-50% of monthly rent
• Maintenance markups: 10-20% on repairs
• Setup fees: $200-$500

Total annual cost: $2,000-$3,000+ per property

Your time investment: 1-3 hours/month

Feature Comparison

What Software Provides

Tenant Management:

• Online application processing
• Tenant portal
• Communication tools
• Document storage
• Payment tracking

Rent Collection:

• Online payment processing
• Automated reminders
• Late fee calculation
• Payment history
• Financial reporting

Maintenance:

• Request submission portal
• Vendor management
• Cost tracking
• Status updates
• History tracking

Lease Management:

• Digital lease storage
• Expiration tracking
• Renewal reminders
• Document templates
• E-signature integration

Reporting:

• Income and expense reports
• Property profitability
• Tax-ready exports
• Custom reports
• Analytics

What Property Managers Provide

Full Service:

• Complete property management
• Tenant screening and placement
• Rent collection
• Maintenance coordination
• Property marketing
• Legal compliance

Expertise:

• Market knowledge
• Local regulations
• Vendor networks
• Industry experience
• Problem-solving

Time Savings:

• Minimal time required
• Handles all operations
• Available 24/7
• Emergency response
• Professional service

Pros and Cons

Property Management Software

Pros:

• Lower cost: $0-$100/month vs. 10% of rent
• Full control: You make all decisions
• Learning opportunity: Understand your business
• Scalable: Easy to add more properties
• Transparency: See everything in real-time
• No contracts: Cancel anytime
• Customizable: Use features you need

Cons:

• Time required: You do the work
• Learning curve: Need to learn software
• No expertise: You handle problems yourself
• Limited availability: You're not always available
• Stress: You deal with tenant issues
• Responsibility: All decisions are yours

Property Manager

Pros:

• Time savings: Minimal time required
• Expertise: Professional knowledge
• Availability: 24/7 service
• Local knowledge: Market expertise
• Vendor network: Established relationships
• Stress reduction: They handle problems
• Professional service: Experienced management

Cons:

• Higher cost: 10% of rent + fees
• Less control: They make decisions
• Less transparency: May not see everything
• Contract terms: Often long-term contracts
• Quality varies: Not all managers are equal
• Fees add up: Leasing, renewal, maintenance fees
• Less learning: You don't learn the business

When to Use Software

Best For:

Small portfolios (1-10 units):

• Lower cost makes sense
• Manageable workload
• Good learning experience

Hands-on landlords:

• Want to be involved
• Enjoy property management
• Want to learn the business

Tech-savvy landlords:

• Comfortable with software
• Appreciate automation
• Value efficiency

Cost-conscious landlords:

• Want to maximize profits
• Minimize expenses
• Control costs

Landlords with time:

• Can dedicate 5-15 hours/month
• Available for tenant issues
• Willing to learn

Ideal Scenarios:

• Managing 1-10 properties
• Properties in same area
• Similar property types
• Good tenant relationships
• Comfortable with technology

When to Hire a Property Manager

Best For:

Large portfolios (10+ units):

• Too much work for one person
• Need professional management
• Worth the cost

Busy landlords:

• Don't have time
• Other commitments
• Want passive income

Remote landlords:

• Don't live near properties
• Can't manage locally
• Need local presence

Complex properties:

• Commercial properties
• Multi-unit buildings
• Specialized properties

Landlords who want passive income:

• Don't want to be involved
• Prefer hands-off approach
• Value time over money

Ideal Scenarios:

• Managing 10+ properties
• Properties in different locations
• Don't have time to manage
• Want passive income
• Complex property types

Hybrid Approach

Option 3: Software + Part-Time Help

What it is: Use software yourself, hire help for specific tasks

You handle:

• Overall management
• Major decisions
• Software operations
• Strategic planning

Help handles:

• Maintenance coordination
• Property showings
• Emergency response
• Specific tasks

Cost: Software ($50/month) + Help ($200-$500/month)

Benefit: Lower cost than full manager, less work than DIY

Option 4: Software + Virtual Assistant

What it is: Use software, hire virtual assistant for admin tasks

You handle:

• Property management
• Decision making
• Tenant relations

VA handles:

• Data entry
• Communication
• Scheduling
• Administrative tasks

Cost: Software ($50/month) + VA ($300-$800/month)

Benefit: Keep control, reduce administrative burden

Making Your Decision

Decision Framework

Ask yourself:

1. How many properties?

• 1-10: Software likely better
• 10+: Consider manager

2. How much time do you have?

• 5+ hours/month: Software works
• Less than 5 hours: Consider manager

3. What's your budget?

• Tight budget: Software
• Budget allows: Either option

4. Do you want to be involved?

• Yes: Software
• No: Manager

5. Are you tech-savvy?

• Yes: Software
• No: Either, but manager easier

6. Where are your properties?

• Local: Software works
• Remote: Consider manager

Cost-Benefit Analysis

Software Example (5 properties, $1,500 rent each):

• Software cost: $50/month = $600/year
• Your time: 10 hours/month × $50/hour = $500/month = $6,000/year
• Total cost: $6,600/year
• But: You learn the business, have full control

Manager Example (5 properties, $1,500 rent each):

• Manager fee: 10% of $7,500 = $750/month = $9,000/year
• Leasing fees: $1,500/year (one turnover)
• Total cost: $10,500/year
• But: Minimal time, professional service

Transitioning Between Options

From Software to Manager

When to switch:

• Portfolio grows beyond capacity
• Time becomes limited
• Want more passive income
• Properties become complex

How to transition:

• Research managers carefully
• Get references
• Review contracts
• Transfer data and documents
• Maintain oversight initially

From Manager to Software

When to switch:

• Want to reduce costs
• Want more control
• Have time available
• Want to learn the business

How to transition:

• Choose software platform
• Get all property data
• Set up software
• Learn the system
• Take over gradually

The Bottom Line

Choose software if:

• You manage 1-10 properties
• You have 5+ hours/month
• You want to save money
• You want full control
• You're comfortable with technology

Choose a property manager if:

• You manage 10+ properties
• You don't have time
• You want passive income
• Properties are complex
• You prefer hands-off approach

Consider hybrid if:

• You want control but need help
• Software + part-time assistance
• Lower cost than full manager
• More involvement than manager

The best choice depends on your situation, goals, and preferences. Many landlords start with software and transition to a manager as they grow, while others prefer to manage themselves with software tools.

Property management software gives you professional tools at a fraction of the cost of a property manager, but requires your time and involvement. A property manager provides full service but costs significantly more.

Compare our pricing with property manager costs and explore our complete feature list. Read our property management software reviews to see how software compares. Try property management software free and see if it meets your needs before deciding whether to hire a property manager.