- DIY landlords spend 4–5 hours per unit/month managing rentals. This costs them valuable time.
- Tenant turnover in Las Vegas costs landlords an average of $1,500 per unit.
- Legal missteps when managing yourself can lead to tenant lawsuits or big fines.
- Delayed maintenance raises long-term repair costs and makes tenants unhappy.
- Property management software can reduce late rent and maintenance problems by doing tasks automatically.
Self-managing rentals may look like a smart financial move, especially in busy markets like Las Vegas where rental demand keeps profit margins strong. But many landlords don’t see the true cost in time, risk, and how much work it takes. Now, property management software is available. It’s a better way to stay in charge without getting caught by typical problems DIY managers face. Let’s unpack the real impacts of managing your own rental properties and whether it truly saves you money—or costs you more in the long run.
The Illusion of Cost Savings
Not hiring a professional property manager might seem like an easy way to save 8–12% of your monthly rent. And that’s a lot of money over time. For instance, on a $2,000 rental, that’s an immediate saving of $160 to $240 per month. Multiply that across multiple units, and the perceived savings stack up fast.
But self-managing isn’t a free ride. That monthly ‘saving’ comes with many tasks that have hidden costs – these are emotional, financial, and legal. Time you spend answering tenant calls, arranging repairs, tracking payments, and staying compliant with state laws isn’t free. In business terms, that time comes with an opportunity cost: the other investments you’re not making, or the free time you’re sacrificing.
Some landlords do manage their properties well themselves. But mistakes or doing things slowly costs more than most people think. Whether it’s an unpaid rent issue, a maintenance disaster, or a legal misstep, each mismanaged task can erase months of those 8–12% savings. Let’s look at these hidden costs more closely.
The Real Hidden Costs of Self-Management
1. Time Cost
Managing rental properties takes a lot of time. According to Stessa, the average landlord spends between 4 and 5 hours per unit per month on property management duties. This includes:
- Screening and placing tenants
- Collecting rent and issuing late notices
- Responding to maintenance requests
- Negotiating lease renewals or move-outs
- Inspecting properties
- Handling compliance paperwork
For landlords managing just 3 units, that equals up to 15 hours per month—almost the equivalent of a part-time job. Managing five or more units while juggling another profession? You may be looking at evening and weekend hours filled with admin tasks, tenant complaints, and emergency repairs.
Crucially, time spent managing properties is time not spent growing your portfolio, analyzing new deals, or building passive income streams. Landlords who think ahead start asking: “Is this the best way to use my time?”
2. Tenant Turnover
Tenant turnover is one of the biggest and most underestimated expenses in rental property management. The process contains several built-in costs:
- Lost rental income during vacancy periods
- Cleaning and basic repairs
- Marketing and advertising the property
- Time spent screening and onboarding new tenants
According to Zillow, the average tenant turnover cost in Las Vegas is around $1,500 per unit. That doesn’t include the potential for missed rent if a bad tenant defaults, or causes extensive damage requiring weeks of repairs.
Tenant quality and retention go hand-in-hand. Without thorough screening, landlords run the risk of choosing tenants more likely to break their lease, cause property damage, or generate complaints. These issues not only cost more money. They also hurt your property’s reputation. This matters a lot in competitive places like Las Vegas where renters review properties online.
3. Legal and Compliance Risks
Each state has its own landlord-tenant laws. In Nevada—and specifically Las Vegas—these laws can shift based on local rules (e.g. notice requirements, eviction procedures, rent increase limits). Self-managing landlords might not know about updates or details in the law. This makes it very likely they could accidentally break the rules.
Mistakes can include:
- Issuing the wrong notice length before entering a unit
- Charging illegal fees or incorrectly withholding deposits
- Mishandling evictions or skipping mandated paperwork
Violations can result in
- Legal penalties
- Tenant lawsuits
- Delays in court proceedings
- Repairs at landlord’s expense
Hiring lawyers to fix these issues costs a lot. But you can often avoid them by using the right steps or getting help. Following the law is a must. Even simple mistakes because you didn’t know can cost thousands.
4. Maintenance Oversight & Delays
One of the fastest ways to lose a good tenant—or rack up a long-term repair bill—is to delay addressing maintenance issues. Minor problems left unresolved can escalate. For instance:
- A slow-draining sink today can become water damage later
- A minor roof leak could result in mold remediation costs
- An HVAC issue during a Las Vegas summer can be grounds for tenants to break their lease
Self-managing landlords often wait for problems to happen before fixing them, especially when they are busy with other things. Unfortunately, delayed service doesn’t just hurt your budget—it affects tenant satisfaction and retention. Residents are more likely to renew their lease when repairs are done quickly, well, and communication is clear.
Also, DIY managers often don’t get better prices from repair people. Established property management companies get bulk pricing or have standing relationships with repair professionals. Paying full-market costs with slower turnaround times can further chip away at your supposed “savings.”
5. Stress and Burnout
Property management isn’t just transactional—it’s personal. You’re dealing with people’s homes, emotions, and expectations. The strain of being available 24/7, dealing with tenant complaints, enforcing boundaries, and overseeing repairs adds up.
Even experienced DIY landlords report moments of burnout. The most common stressors include:
- After-hours emergencies
- Confrontational tenants
- Scheduling conflicts with vendors
- Legal uncertainties
- Lack of personal time
The stress of managing properties yourself is often what makes landlords finally get help. They might hire a property manager or start using technology that makes the work easier.
Case in Point: Las Vegas Rental Market Challenges
Las Vegas continues to be one of the fastest-appreciating housing markets nationwide. Rent prices are still competitive. Also, many new people are moving here, which means there’s high demand for rentals. This gives landlords an advantage.
However, this opportunity also comes with increased expectations. Las Vegas renters are digitally savvy and demand efficient, professional communication and fast service—especially when it comes to climate-related concerns like air conditioning breakdowns. These pressures make self-management harder:
- Units going vacant for even a week mean lost revenue in a tight market
- Online reviews add pressure to maintain tenant satisfaction
- Heat-related maintenance issues require lightning-fast responsiveness
- Scheduling showings, fielding calls, and managing listings eats up hours
If you don’t have good systems, you might fall behind. You could miss out on good tenants. Or worse, you might get bad reviews online, which makes it harder to rent out your places.
A Smarter Way: How Software Simplifies Self-Management
Property management software connects how big rental companies work with the freedom of doing it yourself. It’s the middle ground that lets you keep control—without sacrificing your time, peace of mind, or compliance standards.
1. What Is Property Management Software?
Property management software means online tools that handle many tasks for landlords. These tasks include:
- Rent collection
- Lease documentation and renewals
- Online applications and tenant screening
- Maintenance request tracking
- Accounting and reporting
Popular platforms include:
- AppFolio: Made for managing more properties, includes marketing tools.
- Buildium: Known for working with financial software like QuickBooks.
- TenantCloud: Costs less for landlords with fewer properties.
- RentRedi: Works well on phones, best for landlords who are often out and about.
These tools are more than just spreadsheets and email. They are central places where you can do everything from your phone or computer.
2. Key Benefits
Here are the major advantages of using rental property management software:
- Fewer Late Payments: Auto-reminders and digital rent portals encourage on-time payments.
- Tenant Screening Works Better: You can quickly check criminal records, income, and credit. This helps you avoid picking the wrong tenants, which saves money.
- Ready-Made Documents: The software has templates for things like leases, eviction notices, and late rent warnings. These help you follow the law because they use tested formats.
- Handling Maintenance: Tenants can send in problems using the software. You can quickly reply or send a repair person. You can also easily follow the job from start to finish.
- Clear Money Tracking: You can instantly see income, costs, and reports ready for taxes. This makes doing your taxes and seeing how much money you’re making easier.
- Manage From Anywhere: This is good for owners who live far away. You can check how things are going, talk to tenants, and change rents—all from somewhere else.
3. Cost Comparison: Software vs. Property Managers
Let’s break down the cost:
- Property Manager Fees: 8–12% of monthly rent ($160–$240 on a $2,000 unit) + extra fees for filling empty units, renewing leases, or handling maintenance.
- Software Fees: Starting from $10 up to $100/month, often the same price no matter how much the rent is.
That means the yearly cost of software might be $120 to $1,200. This is much cheaper than paying manager fees for many units. The catch? You still handle some work. But it’s work done smarter, faster, and in one place.
Real-Life Benefits for Las Vegas Landlords
Steve Hawks, a respected Las Vegas realtor and investor, notes that landlords using efficient systems for rental property management often report 10–15% higher returns. Why?
- Better Retention: Happy tenants stay longer, reducing turnover costs.
- Faster Repairs: Software makes sure issues are reported and fixed quickly.
- Scalability: Once systems are set, adding new properties doesn’t make things much harder.
Digital landlords can even have the software automatically raise rents based on local laws. They can also look at what’s working well across their different properties and see what brings in more money in each place. They’re no longer guessing—they’re strategizing.
Who Should Still Consider a Property Manager?
Property management isn’t one-size-fits-all. For some landlords, hiring professional managers is still very helpful, especially when:
- You live out-of-state or travel often
- You own 10+ properties and need someone else to handle everything
- You dislike talking with tenants or dealing with legal details
- You simply don’t have the time or want to manage
Even then, using property management software can help you keep an eye on things. Many landlords use software alongside property managers. This helps them see exactly what’s happening, get reports, and check how well the manager is doing.
Stay in Control—Without Losing Your Sanity
Self-managing rentals can look like the cheaper option. But hidden costs from time, stress, tenant turnover, and legal mistakes can eat away at that saving. If you plan to manage rentals for a long time to build wealth, using tools like property management software is a smart move.
Landlords across the country are discovering that control isn’t the same as doing everything yourself. With the right tools, you can automate tasks, give work to others, and keep everything in one place. This takes care of the most tiring parts of managing. It lets you add more properties without getting worn out.
Trending Right Now: The Digital Landlord Movement
More property management software is available now. This is leading to more landlords using digital tools. No more paper checks, locked filing cabinets, or homemade spreadsheets. Landlords who use technology are doing better than others. This is true in Las Vegas too.
Whether you have just one condo or are managing a good number of properties, there are tools that fit your budget, what you want to achieve, and how comfortable you are with technology. Steve Hawks keeps showing Las Vegas investors better tools and how to make more money. He shows them that you can have control and make things easy at the same time.
So the real question isn’t whether you’re spending money—but whether you’re spending it wisely. Using digital tools to manage your properties might be one of the best money decisions you make.