Saving money is an absolute priority, especially as a real estate investor. But sometimes when we think we’re saving, we’re actually costing ourselves more.
Property management, for example. If you’re managing your own rental property because you think you’re saving money on leasing and management fees, you might be surprised to learn that a lot of independent landlords actually spend more when they’re managing alone. That’s due to a lack of resources, relationships, and expertise.
Many landlords, especially first-time property owners, are tempted to manage their rentals on their own to save money. At first glance, this makes sense: why pay a property management company when you can do the job yourself?
But, here’s the truth. DIY property management often comes with a number of hidden costs, and these costs can erode profits, increase risk, and turn your investment goals into a full-time headache.
If you're a landlord in Virginia considering managing your own rental property, we’re here to unpack the often overlooked costs of DIY property management so you can make an informed decision about what’s best for your time, money, and long-term success.
Longer Vacancies for DIY Properties Leads to Lost Revenue
One of the most expensive pitfalls of DIY property management is extended vacancies. Every day your rental sits empty is a day you’re losing income, and many DIY landlords underestimate how hard it can be to fill a unit quickly.
Professional property managers typically have established marketing channels, partnerships with listing sites, and know exactly how to price and advertise your property to reduce vacancy time. Sometimes, our relationships with well-qualified tenants can help us find a suitable resident before we even advertise. But for a DIY landlord, you might find:
Lack access to high-traffic rental platforms
Listings with unprofessional photos or vague descriptions
A real struggle to find time for showings
Pricing of the unit that is too high or too low
Even a two-week delay in finding a tenant can cost you hundreds or even thousands of dollars, especially in more competitive Virginia markets like Virginia Beach.
The Hidden Costs of Higher Turnover and Tenant Churn
Tenant turnover is one of the biggest expenses in rental property ownership. The process of cleaning, repairing, marketing, and re-leasing a property adds up fast. There’s also the vacancy gap that’s always going to hurt, no matter how long you’ve been in the business of renting out homes.
DIY landlords often experience higher turnover rates due to slow response times to maintenance requests. There’s often poor communication due to a lack of established expectations or policies. Many tenants find their independent landlords have a lack of professionalism in managing disputes or complaints. They get frustrated, especially if lease terms are not enforced consistently.
Virginia tenants today expect a high level of service. If they don’t get it, they’ll leave, especially in competitive areas where rental options are abundant. A property management company not only helps retain good tenants but also handles renewals, rent increases, and relationship management to keep turnover low.
Incorrect Rental Pricing
Many landlords assume they know the value of their rental property, but pricing a rental correctly requires a deep understanding of the local market, a lot of reliable data, and the ongoing collection of insights and analytics that explain what similar homes are renting for in your neighborhood.
Set the rent too high, and the property sits empty. Set it too low, and you leave money on the table.
Professional property managers use market analysis tools, neighborhood comps, and data from similar units to optimize pricing. DIY landlords often rely on gut instinct or out-of-date listings.
Virginia’s rental markets vary greatly by city and region, and mispricing your rental, even by $100 a month can cost you $1,200 a year or more.
Costly Maintenance Mistakes and DIY Management
Another hidden cost of DIY management comes in the form of unreasonable or poorly managed maintenance.
Experienced property management companies like ours have negotiated rates with licensed vendors and contractors, and we also remain committed to regular preventative maintenance schedules that can help us catch problems before they escalate.
DIY landlords are often in danger of overpaying for repairs by hiring random contractors who are not licensed or insured, under-maintaining the property, which may lead to bigger repairs later, and trying to handle repairs and replacements themselves, risking further damage or legal issues.
Would you like an example?
Let’s say you need to replace a hot water heater. A property management company might have a trusted vendor who can do it for $900. They’ll stand by their work, and it will be completed right away with minimal disruption to your tenants. A DIY landlord calling around last-minute may pay $1,400 or more, and wait longer for service.
Virginia’s landlord-tenant laws require landlords to maintain certain standards of habitability. Failing to do so not only frustrates tenants but also opens you up to legal liability and complaints to the Virginia Department of Housing and Community Development.
Bad Tenants are Expensive Trouble
Screening tenants is one of the most important tasks in property management, and one of the riskiest to get wrong. An unqualified tenant can cost you thousands in unpaid rent, property damage, eviction proceedings, and stress.
As professional property managers, we’re creating consistent and objective screening procedures that allow us to identify the most qualified residents from your pool of applicants. We’re evaluating:
Criminal and credit background checks
Rental history verification
Employment and income verification
We’re using standardized criteria to ensure fair housing compliance.
DIY landlords are busy and eager to get a tenant in place. They might skip steps, rush the process, or make decisions based on instinct rather than data, and this can lead to placing renters with histories of late payment or eviction. It can result in a tenant experience that leads to property damage.
Evictions are far more expensive than property management fees.
Evicting a tenant in Virginia can take 1-3 months and cost you $2,000–$5,000 or more in legal fees, court costs, and lost rent. Avoiding just one bad tenant could cover years of professional management fees.
Limited Access to Technology and Tools puts DIY at an Expensive Disadvantage
Today’s property management is powered by technology. Property managers use online platforms to streamline tasks like:
Rent collection
Lease signing and renewals
Maintenance ticket tracking
Financial reporting
Tenant communication
DIY landlords often lack these tools or don’t use them effectively. This results in delays in rent payments (or missed payments entirely), unorganized bookkeeping and tax headaches, miscommunication with tenants, and difficulty keeping track of lease expirations and renewals.
In contrast, as a professional property management company, we use software to automate much of the administrative burden and provide you with regular financial reports, year-end tax documents, and tenant performance summaries.
Time Is Money: The Value of Your Time
Many DIY landlords fail to account for the opportunity cost of their time. Answering late-night maintenance calls, driving across town for showings, chasing down rent payments; all of these tasks add up. Even if you spend 10 hours a month managing a single property, think about how much that time is worth and what you could be doing with it instead. When you’re juggling multiple properties or have a full-time job, the costs go even higher, especially when you calculate stress, lost time with family, or missed professional opportunities.
Professional managers not only handle the day-to-day operations of a rental property or an entire portfolio, we also protect your peace of mind and free up your schedule to focus on the big picture: growing your portfolio, not micromanaging tenants.
Legal Risks and Compliance Pitfalls
Virginia’s landlord-tenant laws are nuanced and frequently updated. If you’re not well-versed in security deposit limits and deadlines, notice requirements for entry or rent increases, procedures for lease termination or eviction, and fair housing guidelines…you’re taking a legal risk. Violating Virginia laws, even if it’s unintentional, can result in fines, lawsuits, and damage to your reputation as a landlord.
A professional property manager stays up to date on Virginia-specific legislation, handles legal documentation, and ensures you remain compliant at every step.
DIY property management may seem like a smart way to save money, but for most landlords in Virginia, it often ends up being more costly in the long run. From extended vacancies to legal pitfalls, the hidden costs can quickly exceed the typical 8-10% management fee.
A good property manager does a lot more than collect rent and find tenants. We protect your investment, reduce risk, and maximize your income all while giving you your time back.
Looking for the right property management partner to help you avoid costly mistakes, retain great tenants, and build lasting wealth through real estate? We have an idea. Contact us at Doud Realty Services, Inc. We provide expert property management in Norfolk, Portsmouth, Hampton Roads, as well as surrounding areas such as Virginia Beach, Suffolk, Chesapeake, and Newport News. We’d love to show you how you can save money and even earn more by working with a talented team like ours.