I get this question all the time from investors who own 3 to 8 doors in the West Metro. They wonder if paying someone to manage the properties is worth it when the portfolio is still small.
If you have 3 to 10 rental properties, you have probably asked yourself whether to keep managing them yourself or bring in a professional. I own 13 doors and manage them through Northome Property Management. Here is how I think about the decision.
Time is the real cost
Managing even 5 doors takes more time than most people expect. Tenant calls, maintenance coordination, lease renewals, showing properties, and chasing rent add up. Many investors I talk to say they spend 5 to 10 hours a week on management tasks once they hit 5 doors.
The numbers
Typical management companies charge 8 to 10 percent of rent plus a leasing fee of one month’s rent. On a $1,800 unit that is $144 to $180 per month plus $1,800 when the tenant turns over. Northome charges a flat $125 per door per month with no leasing fees or markups on repairs.
Legal exposure in Minnesota
Minnesota has specific rules on security deposits, habitability, and eviction timelines. Missing a deadline or using the wrong form can cost you months of rent or worse. Professional managers stay current on the law so you do not have to.
When self-managing makes sense
If you live close to the properties, enjoy the work, and have fewer than 4 doors, self-managing can work. Once you add more properties or your time gets tight, the math usually favors hiring help.
If you are a small investor in the West Metro trying to decide whether to keep managing your own rentals, call me at 952-994-4451 or use the contact form. I manage 13 doors myself and I keep the service simple and flat rate.