Property Management vs. Self-Management in 2025 – What’s Best for Your Rental, Pros & Cons

Let’s imagine that your rental investment has gone smoothly, from acquisition to renovation, including furnishing. While these initial steps are important, self-management, in combination with the professional rental management of your property and its marketing to guests, will be even more crucial in the long-term context.

The question arises as to whether it is better to delegate management to a specialized professional or to manage your property yourself? What are the advantages and disadvantages of using a real estate agency?

What is Professional Property Management?

Before evaluating the respective merits of personal and professional property management, we must first understand what is meant by property management. Property management encompasses all the activities surrounding the life of your real estate investment. It can be divided into 3 main categories: administrative management, financial and accounting management, and technical management.

Administrative management

Managing a rental property involves posting the rental advertisement to find a client, comparing the rental applications received to select the best candidates, drafting the rental agreement, and conducting the inventory of fixtures upon arrival and departure.

You also need to deal with any potential disputes with the guests that you may have to manage.

1. Listing the property & managing bookings

The first step in managing a rental is creating a compelling rental advertisement on platforms like Airbnb, Booking.com, VRBO, or Expedia. This includes:

• Writing an engaging property description with high-quality photos.
• Setting competitive pricing based on market demand and seasonal trends.
• Managing availability and minimum stay requirements across multiple platforms using channel managers like Guesty or Hostaway to prevent double bookings.

2. Guest screening & rental agreements

Unlike traditional long-term rentals, where owners compare rental applications, short-term rental platforms handle instant bookings or request-to-book options. However, vetting guests is still essential to prevent potential issues.

• Airbnb allows hosts to set booking conditions, such as requiring verified IDs and positive reviews.
• On VRBO, hosts can request security deposits and manually approve reservations.
• For direct bookings, property managers often draft their own rental agreements to outline house rules, deposit terms, and cancellation policies.

3. Conducting check-in, check-out & property inspections

Before a guest’s arrival, the property manager must conduct an inventory of fixtures to ensure everything is in place. Upon check-out, an inspection should be done to identify damages or missing items.

• Self-check-in options (keyless entry, smart locks) on Airbnb and Booking.com streamline the process for remote management.
• Expedia and VRBO encourage hosts to have detailed property guides to prevent guest confusion.

For instance:

• An Airbnb manager may install a smart lock with a code for each guest to eliminate key handovers and enhance security.
• On Booking.com, a host may use a digital check-in form to collect guest details before arrival for a smooth process.

4. Handling disputes & guest issues

Even with careful guest selection, disputes can arise – such as complaints about cleanliness, noise, or unexpected damages. Property managers must be prepared to:

• Mediate issues between guests and owners.
• Handle refund requests or damage claims through Airbnb’s Resolution Center, VRBO’s damage protection plan, or Booking.com’s guest support team.
• Respond to negative reviews professionally to maintain high ratings.

Example:

• A guest on VRBO claims they found the property unclean upon arrival. The manager must either send a cleaning team immediately or offer compensation while ensuring the review reflects the resolution.
• On Airbnb, if a guest damages furniture, the host has 14 days to submit a claim through AirCover for hosts with supporting photos and receipts.

With property management tools like Guesty or Hostfully, managers can automate guest communication, digital contracts, and review management – and, hence, save time and improve overall efficiency.

Accounting and financial management

Renting out isn’t always smooth sailing: you’ll have many tasks to manage and other events during your investment. The main and most recurring activity is rent. You’ll need to send monthly rent receipts to your guest and conduct the annual rent review.

Accounting and financial management also involves managing unpaid rent (reminders, formal notices), and handling everything related to utilities (co-ownership fees) and taxes (property tax).

Renting out properties through platforms like Airbnb, Booking.com, VRBO, or Expedia isn’t always smooth sailing – there are also multiple financial tasks to manage beyond just collecting payments.

1. Managing rental payments & receipts

One of the most recurring tasks is processing rental income. On platforms like Airbnb and VRBO, payments are typically processed automatically, with hosts receiving payouts after guest check-in. However, if you rent directly or through Expedia Partner Central, you may need to manually track deposits and issue invoices.

Example:

• Airbnb & VRBO. Payouts are sent within 24 hours of guest check-in, but processing times vary depending on the payment method.
• Booking.com. If you opt for the platform’s payment service, they collect guest payments and transfer funds to you at scheduled intervals.

To sustain transparency, sending monthly rental notifications or receipts to guests – especially in the case of long-term stays – is a most suitable practice.

2. Handling late or unpaid rent

While platforms like Airbnb require guests to pay in advance, issues may arise with chargebacks, canceled reservations, or damage deposit disputes. On Booking.com, where some listings allow guests to “Pay at the Property,” the risk of no-shows and unpaid stays is higher, requiring reminders and formal notices to recover lost income.

For instance:

• If a guest books on Booking.com without prepayment and fails to show up, you may need to enforce cancellation policies or issue payment reminders.
• On Airbnb, if a guest disputes a payment or damages property, hosts must file a claim through the Airbnb Resolution Center within 14 days.

3. Managing utility fees & taxes

Beyond collecting rent, property owners must also handle recurring expenses such as:

• Co-ownership fees (if the property is in a condo or gated community).
• Property tax and local occupancy taxes. Some platforms (like Airbnb) automatically collect and remit taxes in certain regions, but others (like VRBO) require owners to file them manually.

As examples:

• In Punta Cana, the Dominican Republic, Airbnb collects the 18% ITBIS (sales tax) and 1% tourist tax on behalf of hosts, while VRBO hosts must handle this themselves.
• In New York City, short-term rental hosts must manually report and pay occupancy taxes, which vary by borough.

If you integrate property management software like Guesty or Hostaway, you will be able to automate rental invoices, tax reports, and utility expense tracking – saving time and reducing errors. These instruments are used in self-management as well as by professional property management.

Technical management

A property, whatever its type, is aging and, therefore, requires attention. While minor daily maintenance is the guest’s responsibility, major repairs and renovations fall to the rental manager or the owner themselves if they haven’t delegated the task. Finding the right tradespeople, requesting and comparing quotes, and monitoring repair work are just some of the technical activities involved in managing a rental property.

This is particularly the case when the guest moves out, with the entire issue of restoring the property to its original state. Other key issues include monitoring annual boiler maintenance (if applicable), ordering any missing diagnostics such as the Energy Performance Certificate (EPC), and handling various disasters that may arise.

Professional Property Management
vs. Self-Management

Are you hesitant about delegating property management to a professional manager or self-management? Here’s an overview of the advantages and disadvantages of both types of management.

What are the advantages of managing your property yourself?

You don’t need to be a real estate professional to manage your property yourself. However, it is essential to be organized and well-informed about your obligations towards your guests.

Complete autonomy

As the sole master on board, you will be able to decide what you think is best to ensure the profitability of your rental investment.

First, in the layout of the apartment or house, you decide how the rooms are organized to best meet local rental demand. You can either rent it furnished or unfurnished, depending on what seems most appropriate to you, and choose the best tax regime for the type of rental.

Furthermore, you’re the one who posts the listings, conducts the visits, and selects the guests. You’ll be able to choose those you consider most convincing and reliable. People with a stable profile and who plan to stay for a long time.

You’re also not bound by a property management contract, which can only be terminated at a certain time of year or only during specific events (sale or death).

Responsiveness and proximity

When you manage your property yourself, it’s easier to build a relationship of trust with the guest. A relationship that’s less impersonal than through an agency, since you’ve personally selected the guest. Your relationship can be more direct and straightforward.

The guest can easily report a problem (a nuisance, a disturbance) or a malfunction in the property, and you can then intervene quickly since there are no intermediaries, which is crucial, for example, in the event of water damage.

Lower costs

Rental management agencies are free to set their prices, except for certain activities regulated by specific laws in different countries (inventory of fixtures, for example). On average, rental management carried out by a property manager costs 7% of the rent.

This is far from negligible, even though there are cheaper basic options. By working alone, you save money since you don’t pay a portion of the rent, which allows you to maintain a higher profitability rate.

A rental agency that charges you 5% of the rent, for example, translates to a 0.5% reduction in rental profitability. Over a year, this roughly corresponds to one less month’s rent collected. Moreover, the property manager charges you for other items, specific services such as leasing fees, drafting legal documents, technical services, etc. These fees increase the cost of rental management.

What are the disadvantages of renting out your property on your own?

However, managing a property alone is not without its drawbacks. Not delegating will require time, motivation, and, above all, solid organizational skills.

Organization as a crucial element

Writing titles, descriptions, house rules, etc., posting a listing, scheduling visits from interested guests or constantly answering to them in apps and messangers, and selecting a guest are all very time-consuming activities. Managing your apartment or house alone requires dedicating time.

The tasks are numerous and, above all, repetitive, especially if your guests frequently leave the apartment.

In a high-demand area, it will be relatively easy to find a renter; however, if this is not the case, it can be a long process.

Furthermore, you mustn’t miss important deadlines (e.g., property income declarations), carry out property inspections, manage late rent and unpaid rent, take care of regularizing condominium fees, handle any damages, and manage guest terminations (and their notice period). These are just some of the things that require a lot of organization.

Comparison of self-management vs. property management company

Task	Self-management	Property management company
Listing creation & optimization	Host writes descriptions, house rules, and takes photos	Professional team creates optimized listings with SEO-friendly content and high-quality images
Guest communication	Host responds to inquiries, screens guests, and manages check-ins/check-outs	Dedicated team handles guest communication 24/7, ensuring quick responses
Managing booking platforms (Airbnb, Booking.com, VRBO, Expedia)	Host manually updates availability, pricing, and reviews	Uses channel managers to sync listings across platforms and adjust pricing dynamically
Scheduling property viewings	Host arranges and conducts visits for potential guests	Management company schedules visits and provides virtual tours
Handling repetitive tasks (key exchanges, cleaning, maintenance)	Host coordinates cleaning services, checks property condition after each stay	Cleaning, maintenance, and key exchanges are handled automatically through service providers
Finding new guests	Host must market the property and wait for inquiries	Professional marketing ensures higher occupancy rates and quicker guest placement
Financial management (rent collection, unpaid rent handling, tax declarations)	Host manually tracks payments, follows up on unpaid rent, and handles tax reporting	Company automates rent collection, manages late payments, and provides tax assistance
Property inspections & maintenance	Host inspects the property before/after each guest, finds repair services	Regular inspections and maintenance handled by a dedicated team
Handling guest disputes & cancellations	Host resolves conflicts, negotiates cancellations, and deals with property damage	Management team handles disputes, damage claims, and ensures smooth guest transitions

Lack of motivation

For an apartment, all the activities we’ve just discussed are possible, but if you rent out multiple properties, things become more complicated. If the property is far from your home, or if you own several properties, the logistics can become truly daunting and discouraging.

Not all investors are destined to become rental managers of their apartments. You may want to make your assets grow without spending all your evenings and weekends there, which is why professional rental management is so popular.

Forgetting legal rules

The rental management business is a regulated activity. It is governed by various laws designed to protect both the owner and the guest. A rental agreement, for example, should not be drafted lightly. While free templates are available online, they often omit clauses. If you rent furnished accommodations, you can’t just use any furniture; there are administrative rules governing this.

You must monitor changes in the rent controls introduced by different laws, which are usually expanding to more and more cities, as well as the annual rent revaluation (via the rent review index), and the same goes for changes related to rental taxation.

Legal considerations in rental management in different countries

Legal aspect	USA	UK	Germany
Rental contracts	Varies by state; some states require detailed lease agreements	Assured Shorthold Tenancy (AST) is the standard for most rentals	Must comply with the Tenancy Act; contracts typically favor guests
Furnished rental rules	No strict furnishing requirements, but Airbnb-style rentals are restricted in some cities	No furnishing demands, but furniture must meet fire safety standards	No specific list, but furnished property has different tax rules
Rent control laws	Some cities like New York, San Francisco, and Los Angeles have rent control	Rent increases limited by Government Rent Cap (e.g., London, Manchester)	Rent caps apply in Berlin, Munich, Frankfurt
Rental taxation	Different tax rates for long-term and short-term rentals; short-term rentals may be taxed as a business	Rental income is taxed, but owners can deduct expenses	Rental income is subject to growing tax rates, and a decline is possible for tax benefits
Rental income tax filing	Federal and state-level taxation, complex deductions possible	Self-assessment tax return required	Must declare rental income in annual tax return

Filing rental income tax returns is another important point. Depending on whether you rent your apartment as an unfurnished rental, a furnished rental, or a seasonal rental, the tax status will differ, along with the reporting rules. Applying complex aspects such as depreciation for furnished rentals to your tax returns requires extensive knowledge. Otherwise, you risk being subject to a tax adjustment.

Intermediate rental management solutions

For owners who don’t want to delegate all rental management while still receiving support and assistance, there are intermediate solutions. These have been multiplying in recent years.

• The idea is to delegate only part of the management, particularly the administrative side (preparing and sending rent receipts) and drafting the rental agreement. Paid platforms and software exist to make your life easier.
• Delegate only part of the management – the administrative and accounting side – to keep control of the rest.
• In return, the cost of this type of rental management remains much lower than rental management by a property manager, at 2 to 3% of rent. However, this is only administrative.

Their main strength is that they automate routine management procedures: generating a standard rental agreement, a condition report template, sending out calls and rent receipts at fixed deadlines, reviewing rents… all these sensitive and important steps for which virtual assistance will be welcome.

Benefits of Professional Property Management

A property manager is a professional who provides advice and expertise throughout the entire management of your property. They are obligated to work in your best interest to maximize the profitability of your rental investment. This is why they provide assistance with property, legal, and tax matters.

We believe that using a real estate agency specializing in property management is essential in at least four situations:

• You are an expatriate. This means that when investing in real estate in France, you don’t have much choice but to use a property manager unless you’re involved in multiple flights, which is not very cost-effective.
• You own multiple properties. The more rental properties you own, the more complex and time-consuming management can become. This is especially true if your rental apartments or houses are located far apart. You’ll be traveling a lot, which can be exhausting in the long run.
• You’re new to rental real estate. Taxation, legal framework, renovations – rental real estate is an activity that requires knowledge in many sectors. If you’re new to real estate and lack the motivation to delve into all the intricacies of tax regulations, then working with a property management agency is definitely an excellent way to grow your assets while maintaining peace of mind.
• You’re overloaded. Whether you’re overwhelmed professionally or personally, it’s difficult to give your rental property(ies) the attention they deserve. The property manager relieves you of these additional tasks.

These are all legitimate reasons to entrust your assets to a real estate agency for management. Of course, you’ll have to pay management fees, but that’s the price you pay for day-to-day peace of mind. No guest search, no contract to draft, no cold calls from a guest with a problem… the property manager takes care of all the work.

Professional property management is a solution that takes all this stress and work off your hands. Especially if you subscribe to a rent guarantee with the property manager, the latter will work to recover unpaid or late rent and manage any potential disputes. There are management options tailored to your situation; you don’t have to entrust the entire management process, but only part of it; it’s up to you to decide.

Final thoughts

In summary, no management method is superior to the other. If you become the owner of a single property, located two streets away from your home, and it’s a student studio, property management software and a little self-management are all you need. On the other hand, if we’re talking about a six-unit investment property located on the other side of the world, professional property management makes perfect sense.

Agreeing to lose a little rental income and paying management fees for peace of mind is ultimately the real trade-off. Some investors who don’t have the time, desire, or expertise to take on the management of their rental apartment will prefer to delegate, while for others, having complete control over everything that happens in their home is essential.

FAQ on Property Management
Company vs. Self-Management

Updated on: 2025-03-24. Author: Karina

Tags: Hospitality management Property Management