The growing cost of managing rental properties alone

If you're considering becoming a landlord or have been one for quite some time now, know that self-managing rental properties is no longer the same money-saving strategy as it was; it now carries high hidden costs, often arising from vacancies, legal risks, and maintenance inefficiencies. 

Potential losses from vacancies are particularly likely in today's residential rental landscape, as more vacant apartments hit the market. CNBC, for instance, reported that the market added 600,000 new multifamily units in 2024, contributing to the vacancy rate rising to 7.1% in July 2025. 

Uncovering investment property insights into the hidden cost of rental management done the "DIY" way can help you better understand why it may be smart to work with professional property managers.

Are Rental Properties Still Worth Investing In? 

Yes. Even with potential rental management challenges, rental properties remain a solid investment choice.

Indeed, many Americans share the sentiment. In its latest report (2026), Gallup found that most Americans (37%) perceive real estate as the best investment. Gold ranked second, but quite far behind, with only 23% of surveyed Americans considering it a worthwhile investment.

Another reason investing in rental properties is worth it is that it's not just a physical, tangible investment, but also because it can provide a steady stream of income that can increase year by year.

The American Apartment Owners Association (AAOA), for instance, says that average rents surge 3% to 5% yearly. Currently, the average monthly rent in the country sits at $1,500. 

What Are the Most Common Types of Rental Properties? 

Apartment units in multi-unit buildings are the most common form of rental property in the United States. A recent report from Zillow even showed that 56% of renters are apartment dwellers.

The same analysis found that:

• 28% of renters live in single-family detached houses
• 8% of renters live in townhouses or rowhouses
• 6% of renters live in duplexes or triplexes
• 3% of renters live in mobile or manufactured homes

Vacation and short-term rentals are also growing in demand and popularity. 

Market Reports World noted the 2024 global vacation rental market to have had a user base of around 860 million users. Short-term rental supply and guest capacities have also risen globally by 9% from December 2023 to December 2024.

What Is the True, Growing Cost of Managing Rental Properties Alone? 

As exciting and lucrative as becoming a rental property owner/manager is, it's also rife with challenges that have the potential to become costly issues, such as difficulties finding good tenants. Non-compliance with landlord-tenant laws and improper upkeep of properties can also come with high hidden costs. 

High Vacancy Rates and Difficulties Finding Excellent Tenants 

One of the primary "costs" associated with managing rental properties alone is the potential loss of profits due to vacancies. High vacancy rates can be due to many factors, some of which include:

• Ineffective or inadequate marketing
• Poor tenant screening practices
• Overpriced rent 

Compounding the issue is the potential lack of excellent tenants. The latter refers to renters with a solid history of always paying rent in full and on time and respecting and caring for the property as if it were theirs. 

The longer your rental properties sit unoccupied, the more money they'll cost you, as they're not earning any income or profits. Despite that, you'll still spend resources on their upkeep. 

The good news is that a full-service property manager can help. They implement marketing strategies designed to find high-quality tenants quickly, screen each applicant thoroughly, and collect rent on time, as explained by this guide on Long Beach property management solutions. 

Penalties for Non-Compliance With Landlord-Tenant Laws 

Managing rental properties on your own can also come with the risk of making mistakes that may not be in compliance with landlord-tenant rules. Examples include:

• Misusing security deposits
• Violating habitability standards
• Implementing incorrect eviction practices

All those errors can lead to hefty fines and penalties. 

Property Damage Due to Bad Tenants or Lack of Upkeep 

Another "hidden" expense you may face if you opt for solo rental property management is property damage repairs. They could arise due to bad tenants, a lack of landlord-side upkeep, or both.

As the landlord/manager, you may have difficulties juggling all your other personal and job responsibilities. It could then result in delays in property maintenance.

If that happens, your property could suffer more costly wear and tear due to deferred upkeep. Your tenant may also file a livability-related complaint against you. 

Frequently Asked Questions 

What Are the Types of Rental Property Management Services? 

There are two "broad" types of property management services, one of which is partial management, also called "leasing-only" services. The other is full-service property management.

Both apply to long-term and short-term rentals. 

What Is Partial Rental Property Management?

With partial management, you can choose specific services to "outsource" to a professional property manager. 

Opting for this route can help you reduce rental management costs upfront, as you'd only pay the management firm for select services, such as the tasks you can no longer handle yourself. You can, for instance, hire them as your "leasing-only" partner. 

Leasing-only solutions from partial property management cover the tasks that precede actual tenancy (e.g., marketing, tenant screening, and lease signing). 

What Is Full-Service Property Management?

Full-service property management allows you to delegate nearly all your property owner/landlord tasks to a professional property manager/management firm.

Full-service managers can take over whatever a partial management firm does, plus ongoing management. After a tenant signs the lease, for instance, they can help move the new renter into the property and help them with all their immediate needs (e.g., internet and phone connection).

During the tenancy, your full-service property manager will also collect rent, address any tenant inquiries and concerns, and schedule property upkeep. Your manager will even be responsible for choosing and hiring reliable, licensed contractors and vendors (e.g., plumbers, electricians, and roofers). 

Think Twice About Managing Rental Properties Alone

Managing rental properties alone can be a daunting, time-consuming task. It could even turn out to be more expensive due to vacancy-related losses, bad tenants, and deferred maintenance. 

Fortunately, with the help of a full-service property manager who'll take complete care of your properties on your behalf, you can avoid those issues. 

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