Short-term rentals: property manager or self-management?

10 March 2024 Blog

Rent an apartment

If you have ever wondered at least once in your life, “How can I manage everything independently without going crazy?” Then this is the article for you.

We know perfectly well that navigating the waters of rental apartments is not always an easy task, especially when you don’t have all the arsenal you would need at your disposal.

One of the fundamental choices property owners must make is precisely whether to manage the property themselves or rely on a new figure that has been heard a lot about in recent years: a professional property manager.

Both options have their advantages and disadvantages, and the decision depends on various factors such as time, knowledge of the real estate market, management skills, and risk tolerance.

This is a choice that should definitely not be made lightly, but by reasoning well about the different possibilities, so in this article we are going to see together what are the pros and cons of each type of rental management.

Who is and what does a property manager do

Before we start with the explanations, however, a point needs to be made about who the property manager is.

He or she is a real estate professional, literally a property manager; his or her role is to bring income to real estate, including third parties, taking care of all the tasks, and virtually acting as the property owner himself or herself.

After this brief explanation, at this point people usually think that the property manager is simply a person, or a company, who simply manages the owner’s home, but in reality there is much, much more to it: tax compliance, operational management, marketing, promotion of homes on the tourist market, etc.

The role of the property manager has thus inevitably evolved, going on to implement a range of interdisciplinary skills and knowledge useful to the profession. This change has also occurred because the vacation rental industry has experienced exponential growth in recent years, leading to an increase in its complexity and competition within the market.

This is why the figure of the property manager has taken on crucial importance, becoming a key element in both the tourism and real estate sectors in the face of the new challenges and opportunities that this boom has generated.

Rent types compared

Now that we understand who a property manager is and what he or she does, we can move on to analyze the pros and cons of the types of rental management.

Perhaps this might seem like obvious information to you, but in our opinion it is important to have the whole general overview to have all the information, and thus the knowledge to choose according to what is your real need/need.

Managing apartment independently

Advantages of self-management:

Greater control: managing the property independently enables owners to have full control over all decisions and operations.
Cost savings: by managing everything independently, there are no extra expenses for professional figures, so owners can save on fees and increase their net income.
Direct relationship with the tenant: direct management can lead to more personal and immediate communication with the tenant; this can be perceived as an advantage from an emotional point of view especially: the landlord knows the walls perfectly, knows the city, and can give useful advice.

Possible disadvantages of self-management:

Time commitment: managing a property takes time and attention, especially if there are multiple units or if the owner has other commitments. Moreover, this time can be further prolonged when you are a first-time renter, because you will have to start from scratch with information, regulations, and all the bureaucratic procedures in general
Stress and responsibility: this is a bit of a consequence of the first point; the owner has to deal with all the legal, financial, and maintenance issues, which can be stressful.
Lack of experience: without the experience and knowledge of a professional, owners may face complex situations for which they are not prepared.

Management via Property Manager

Benefits of relying on a property manager:

Professional management: property managers are experts in property management and can take care of all rental issues, from finding tenants to maintenance, ensuring professionalism and expertise.
Time savings: entrusting management to an expert saves owners valuable time that would otherwise be spent on day-to-day apartment management.
Problem management: Having an intermediary between landlord and tenant can help maintain a professional relationship and avoid emotional conflicts, especially with those tenants who do not always follow rules or politeness.
Market knowledge: property managers have a deep understanding of the local market and can help set an appropriate rent while maximizing returns.
Network of contacts: they can have a network of maintainers, lawyers, photographers, designers and many other professionals who can be of great help when needed.

Disadvantages of relying on a property manager:

Additional costs: The services of a property manager undoubtedly entail additional costs, which can reduce the owner’s net income; but if you understand the expense as a personal investment (saving your time and wizards) then this con takes on a whole other meaning.
Less direct control: some owners may feel less involved in day-to-day decisions regarding their property, but even this is not entirely true-it depends on how much an owner wants to delegate and how much he or she cares to be involved. This is a decision to be made when signing the model contract with the property manager.

Where to find a property manager?

Figuring out where to find a trusted property manager might seem like a challenging task, but it is important to remember that you need to look for someone who not only has experience in the field, but who can also offer personalized service that fits your specific needs.

We think we have those skills: in fact, Travel Inside is ayoung, dynamic company whose mission is to connect homeowners to travelers, always ensuring a smooth management experience and optimizing your property’s performance.

Find out why to choose our company as your property manager and what they say about us.