I get this question all the time from investors with 2 to 10 doors. You have a full time job, maybe a family, and you are wondering if paying someone to handle the rentals is worth it.
I manage 13 doors myself and I also run Northome Property Management for other small investors in the West Metro. Here is how I think about it.
The real cost of self-managing
Self-managing saves the fee, but it costs time. Tenant calls at 8pm. Showing properties on weekends. Chasing rent. Coordinating repairs. For most people with a day job, that time adds up fast.
In Minnesota, you also have to know the laws. Security deposit rules, eviction timelines, habitability requirements. One mistake can cost more than a year management fee.
What property management actually costs in Minnesota
Most companies charge 8 to 10 percent of rent plus leasing fees and markups on repairs. For a $1800 rent unit, that is $144 to $180 a month per door. Add leasing fees of half a month rent every time a tenant moves, and it gets expensive for small portfolios.
At Northome we charge a flat $125 per month per property. No leasing fees. No markups on repairs. No percentage. That is the model I use for my own doors and for the clients I take on.
When self-managing makes sense
If you have one or two properties close to where you live, and you enjoy the work, self-managing can work. You learn the business and keep more cash flow.
But once you hit 4 or 5 doors, or if the properties are spread out, or if you travel, the time trade-off usually wins. Most of my clients come to me after they tried self-managing and realized they were losing weekends and evenings.
The decision for small investors
If your goal is to grow your portfolio or keep your time free for your main job or family, hiring a manager who understands small portfolios is usually the better move. Especially when the fee is flat and transparent like ours.
The math changes when you have 20 plus doors. Below that, a good local manager often pays for itself in time saved and fewer mistakes.
People often ask me about the BRRRR strategy. The rent and refinance parts go smoother when you have reliable management in place. Tenants who pay on time and properties that stay in good shape make the numbers work better when you go to refinance.
If you are a small investor in the West Metro wondering whether to self-manage or hire help, call me at 952-994-4451 or use the contact form on this site. I manage 13 doors myself and I keep it straightforward.