But when you buy outside your local area, one big question immediately follows:

Should you self-manage — or hire a property manager?

Self-managing a rental property from out of state can dramatically increase your returns — or quietly erode them. The difference comes down to systems, risk tolerance, and operational discipline.

Let’s break down the pros and cons.

Why Investors Consider Self-Management

1. Higher Cash Flow

The most obvious advantage: you keep the management fee.

Most professional property managers charge:

• 8%–12% of monthly rent

• Leasing fees (often 50%–100% of first month’s rent)

• Renewal fees

• Maintenance markups

On a $2,000/month rental:

• 10% management = $200/month

• $2,400 per year

• $24,000 over 10 years (not including rent increases)

For investors running tight margins — especially BRRRR operators or value-add buyers — that 10% can be the difference between:

• A deal that works

• And a deal that doesn’t

If you’re holding dozens of units, self-managing can mean six figures annually in retained revenue.

2. Full Operational Control

Investors who self-manage control:

• Tenant screening criteria

• Rent increases

• Vendor selection

• CapEx timing

• Lease terms

• Section 8 participation

• Insurance claim handling

If you’re executing a specific strategy — like mid-term rentals, Section 8 maximization, rent-to-own, or heavy value-add — control matters.

Property managers often:

• Avoid creative strategies

• Default to “standard procedures”

• Resist aggressive rent optimization

As an investor, you may move faster and think more strategically than a third-party manager.

3. Better Tenant Screening

Most long-term profitability comes down to who you place in the property.

If you’ve built strong screening systems:

• Income verification

• Background checks

• Landlord references

• Behavior-based screening

• Clear qualification standards

You may outperform a management company that is simply trying to fill vacancies quickly.

For investors focused on stable rent collection (especially with government-backed programs), tenant selection is everything.

4. Stronger Financial Visibility

Self-managing forces you to know:

• True operating costs

• Maintenance frequency

• Turnover costs

• Vendor pricing

• Real NOI performance

Many investors discover that when they delegate too early, they lose operational control,  and expenses quietly inflate.

If you’re scaling intentionally, understanding your numbers deeply can give you a competitive advantage.

The Downsides of Long-Distance Self-Management

Now for the part many investors underestimate.

1. You Are Managing Vendors — Not Just Tenants

When you self-manage remotely, you aren’t fixing things — you’re coordinating people who fix things.

That means:

• Finding plumbers, electricians, HVAC techs

• Negotiating pricing

• Verifying quality

• Handling emergencies

• Preventing vendor fraud

• Ensuring invoices are legitimate

Without boots on the ground, you rely heavily on:

• Tenant descriptions

• Contractor honesty

• Photos and videos

In weaker markets, vendor overcharging is common — especially when they know you’re out of state.

2. Emergency Response Becomes Stressful

Midnight water leak?
Tenant locks themselves out?
HVAC fails during extreme weather?

If you’re not local:

• You can’t drive over.

• You can’t visually inspect damage.

• You must rely on others.

Time zone differences can compound the issue.

The stress level increases significantly when:

• You have multiple properties

• You work full-time

• You lack a trusted vendor network

3. Legal Risk Increases

Landlord-tenant laws vary widely by state and city.

If you invest remotely, you must understand:

• Eviction timelines

• Notice requirements

• Fair housing compliance

• Security deposit handling rules

• Habitability standards

• Rent control laws (if applicable)

A local property manager usually understands:

• Local judges

• Court procedures

• Filing nuances

Mistakes in notice wording or timelines can cost months of lost rent.

4. Vacancy Can Cost More Than Management Fees

One extended vacancy can wipe out a year of saved management fees.

If you’re remote:

• Showings are harder to coordinate

• You rely on lockboxes or third parties

• You may misjudge market rent

• You may miss subtle neighborhood shifts

Professional managers often:

• Have leasing pipelines

• Know hyperlocal rental comps

• Have in-house marketing systems

Vacancy risk is one of the biggest financial variables in remote investing.

5. Scaling Becomes Harder

Managing 1–3 out-of-state properties? Possible.

Managing 20? Much harder.

At scale, self-management requires:

• Virtual assistants

• Bookkeeping systems

• SOPs

• Automated rent collection

• Maintenance tracking software

• Legal compliance monitoring

You are no longer just an investor.

You are running a remote operations company.

When Self-Managing Remotely Makes Sense

It can work well when:

• You own in landlord-friendly states

• You have strong vendor relationships

• You use standardized systems

• You invest in stable tenant classes

• You have long-term holds (low turnover)

• You’re highly process-oriented

It works best for:

• Investors who treat real estate as a business

• Operators comfortable with systems and delegation

• Portfolio builders focused on maximizing cash flow

When Hiring a Property Manager Is the Smarter Move

You should strongly consider management if:

• You value time over incremental cash flow

• You are scaling rapidly

• You invest in tenant-heavy turnover markets

• You operate in tenant-friendly jurisdictions

• You dislike operational headaches

• You lack vendor infrastructure

For many high-net-worth investors, the question becomes:

Is the 8–10% fee buying me peace of mind and scalability?

Often, the answer is yes.

Hybrid Models: A Middle Ground

Some investors structure hybrid approaches:

• Self-manage leasing, outsource maintenance

• Hire leasing-only services

• Use virtual assistants for tenant communication

• Use local “property inspectors” periodically

• Switch to professional management once scale increases

This can preserve margins while reducing risk.

Self-managing an out-of-state rental property is not inherently good or bad.

It is a leverage decision.

You are trading:

• Time

• Stress

• Legal exposure

• Operational responsibility

For:

• Higher margins

• Greater control

• Operational transparency

The most successful remote investors do not wing it.

They build systems first.

Before choosing to self-manage from afar, ask yourself:

• Do I have repeatable processes?

• Do I have vetted vendors?

• Can I absorb a vacancy or legal mistake?

• Is my time better spent acquiring more deals?

In real estate, returns don’t just come from properties.

They come from operational excellence.

And remote self-management demands exactly that.