The average DIY landlord in "high-cost-of-living" areas lose $1,716 every year by self-managing.
But wait, how?
I'm sure you've thought to yourself…
"Property Management is expensive; I'll just do it myself."
If so, you're not alone...
Of the nearly 50 million rental units in the United States, around 41% are managed by owner-landlords. That's millions of people managing their own properties.
And the #1 reason for self-managing?
The cost of property management services.
It's true, the hard costs of hiring a property manager can seem expensive…
But what if I told you the cost of doing it yourself might be greater?
You'd tell me I'm crazy, right?
Well, let's do the math.
According to Cubit, the average household income in a sample high-cost-of-living area is $131,688.
The average number of hours worked per week is around 34.6.
That's an average of $73 per hour.
Now let's walk through the math for self-managing your rental property…
The average time commitment for managing a rental property (between leasing, maintenance calls, coordinating visits, and more) is about 4 hours per month…
$73 * 4 hours = $292 per month...
With many property managers offering full-service management fees for as little as $149 per month, these DIY landlords are actually losing $143 every month in opportunity costs...
$292 - $149 = $143
That’s $1,716 every year.
And if you have a performance-based job with some upside leverage (business owner, salesperson, software engineer, etc), the impact is even larger.
Of course, there are other variables to consider, so it's not a simple black-and-white equation.
Plus, math can be complicated…
That's why we created The Hidden Cost Calculator™ to help you determine if you should hire a property manager or do it yourself.
It considers the estimated rental value of your property, the estimated maintenance work required, and the opportunity cost of your time based on your household income.
Try the FREE calculator today and discover your Hidden Cost Estimate™ in just 60 seconds 🙂
