We know a lot of rental property owners think they are saving money by managing their own rental property. There’s no management fee, right? No leasing fee. You don’t have to pay for maintenance unless you really want to.

Well, we have some bad news.

You might actually be losing money.

There are a number of hidden costs that come with DIY management. Talk to any successful real estate investor who partners with a professional property management company, and they’ll tell you that they earn more and spend less thanks to our resources, technology, and expertise.

Here’s what your DIY systems are actually costing you.

Higher Maintenance Costs

One of the most underestimated expenses of DIY property management is maintenance. Professional property managers like us will have established relationships with licensed, insured vendors and contractors. These vendors offer discounted rates in exchange for the steady volume of work that we can provide. In contrast, a DIY landlord might find themselves:

Overpaying for repairs due to lack of vendor connections or negotiation power.
Choosing the wrong contractors, leading to subpar workmanship or rework (and thus, higher costs).
Delaying critical repairs, which can result in more expensive fixes later on.

Even finding a vendor who can get the work done on your timeline can be difficult these days. Waiting is one thing when it’s your own property, but when it’s a property that you’re renting out to a tenant, you need to make repairs quickly. Waiting around for a vendor or leaving a request ignored can lead to turnover at best and habitability issues at worst.

Consider a common issue like a leaky water heater. A professional manager might resolve the problem with a trusted plumber for a flat rate of $350. A DIY landlord, scrambling to find help, could end up paying $600 or more, and that’s if they are fortunate enough to avoid after-hours emergency fees.

We have seen small issues snowball with DIY landlords who fail to perform routine inspections and preventative maintenance. A minor roof leak, unnoticed for months, might lead to structural damage, mold growth, and a repair bill in the thousands.

Longer Vacancies

Vacancy can chomp through your profitability at an alarming speed. It may seem like an empty rental property is no big deal, but really, it is. Every day a unit sits empty is money lost, and not just in rent, but in utilities, upkeep, and your time. Professional property managers have the systems, marketing strategies, and tenant networks in place to reduce turnover time. As a DIY landlord, you might find yourself facing a limit to your advertising reach. For example, relying solely on Craigslist or Facebook Marketplace won’t match the exposure provided by a professional listing syndicated across dozens of platforms. Are you available for showings? If you can only show the unit on weekends or after work, you may miss qualified tenants who move quickly.

The lack of responsiveness that tenants have reported when trying to rent from a DIY landlord always astonishes us. We understand why: busy schedules often prevent landlords from responding promptly to inquiries, leading prospective tenants to move on. But you don’t want to lose tenants that way. You can’t afford it!

The Cost of Unqualified Tenants

One of the things we do best as property managers is tenant screening.

DIY landlords frequently lack the tools, experience, or time to conduct thorough background checks. As a result, it’s easy to accept the first applicant in order to avoid a vacancy. You might find yourself ignoring red flags just to get someone in place who can come up with the first month’s rent. We know a lot of landlords who skip credit checks or don’t look for evictions nationwide. Are you verifying income and rental history?

Good screening takes time.

But, it’s worth the time because poor screening increases the risk of missing rent, property damage, or even costly evictions. An unqualified tenant might seem fine during a quick phone call and a brief showing, but without proper vetting, you’re taking a pretty big chance.

A single eviction in California can cost between $4,000 to $7,000 when factoring in legal fees, lost rent, court costs, and repairs. And that doesn’t even include the emotional costs.

Professional managers typically use industry-standard screening tools and technology, adhere to fair housing laws, and maintain objective criteria to ensure high-quality tenant placement. It’s not just about avoiding a bad tenant. It’s about protecting your earnings with a great tenant who pays on time and respects your property.

Legal Mistakes in California’s Rental Environment

Perhaps the most dangerous hidden cost of DIY property management in California is the risk of legal noncompliance. The state has some of the most complex and tenant-friendly laws in the country. A misstep can quickly become a lawsuit or a regulatory violation. Common legal pitfalls that we see among DIY landlords include:

Improper notice of entry. In California, landlords must give at least 24 hours written notice before entering the unit (except in emergencies). Violating this rule can lead to fines and legal claims. You need a reason to enter the property, and your tenant has to agree.
Illegal security deposit handling. California caps security deposits at the equivalent of one month’s rent for most rental homes. There are strict rules around how and when the deposits are returned, and photos are now required when you’re making deductions, in support of whatever money you’re withholding to cover the cost of repairing damage. Mistakes with security deposits are very easy to make.
Rent control violations. Statewide rent control has been in effect since 2020. While there are plenty of exemptions available, especially for single-family homes and newer buildings, you have to make sure your lease reflects that you’re exempt. And if you’re not exempt, you need to be careful with how much and how often you increase the rent.
Wrongful eviction. “No cause” evictions are heavily restricted under the Tenant Protection Act of 2019. Failing to follow proper notice periods and just cause requirements can result in legal action, tenant relocation fees, and damages.

Even smart and experienced landlords can inadvertently violate a regulation. And while you can look up some of these laws online, professional managers spend a lot of time and resources in classes and at conferences, staying current on legislation that changes regularly. A single legal mistake in California can easily cost more than an entire year’s worth of professional management fees.

Time Is Money—And Stress

Beyond the financial risks, managing a property on your own takes time. A lot of time. You’ll have to make sure you’re available for:

Handling late-night maintenance calls
Collecting and processing rent
Resolving disputes between tenants or neighbors
Keeping up with legal changes
Scheduling vendors and inspections
Tracking income and expenses

This workload can be overwhelming, especially if you have a full-time job or live far from your rental property. What’s your time worth? Even if you “only” spend 5-10 hours a month managing your property, that’s 60 to 120 hours a year, which is time that could be spent growing your portfolio, enjoying your life, or pursuing other investments.

We know from our conversations with DIY landlords that there’s also an emotional and even an intellectual expense. The weight of tenant issues, the drama of damage disputes, and the frustration around late payments takes a toll. Many find that the stress simply isn’t worth the perceived savings.

The Myth of Savings When Managing Your Own Property

At the end of the day, many DIY landlords operate under the belief that they’re saving 8-10% by not hiring a property manager. But once you factor in higher maintenance and vacancy costs, legal risks and potential fines, time and stress, and lost rent from poor screening, you can see that the true cost of self-management can easily exceed the fees of a professional.

There’s also the opportunity cost. Professional property managers do more than check the tasks off their leasing, management, and maintenance lists. We’re also providing advice about the market, the shifting tenant demands, and the next steps that can make the difference in a higher monthly rent and a better retention plan.

When DIY Makes Sense

Is DIY management always an expensive idea?

No. Not always. To be fair, there are situations where self-management might be viable:

You live on-site or very close to your rental. Maybe you own a duplex and you’re renting out one side of it.
You have extensive property management experience.
You own a single unit with long-term, reliable tenants.
You’re highly organized and well-versed in local laws.

But for most landlords, especially those managing multiple properties or operating in regulated states like California, DIY property management is a risky proposition.

Owning rental property should be an investment, not a second job.

While managing your own property may seem cost-effective on the surface, the hidden costs can make it more expensive and frustrating than it needs to be.

This is California. A professional property manager can make a big difference in both compliance and savings.

Let’s talk about it. Contact us at Redwood Residential Property Management.

The Hidden Costs of DIY Property Management