The $10,000 Mistake: The Hidden Costs of Self-Management
Owning a rental property can be a rewarding investment, but it also comes with risks—especially if you choose to manage the property yourself. While self-management might seem like a way to save money, one misstep can lead to significant financial consequences.
Take one of our recent clients, for example. They thought they could handle everything from tenant screening to maintenance on their own, but it didn’t take long before things went sideways. After renting to what seemed like a promising tenant, they were left with over $10,000 in damages, two months of unpaid rent, and a property that needed major repairs.
Here’s how self-managing cost them more than they ever anticipated:
$10,000 in Damages: The tenants neglected the property, causing significant damage. The carpets were ruined, the walls were painted by the tenants poorly, oil stains covered the floors, and the property was left in complete disarray, requiring extensive cleaning and junk removal.
Unpaid Rent: For two months, the tenants stopped paying rent, which added another layer of financial stress. By the time the eviction process was started, they had already cost the owner thousands of dollars.
Vacancy Delays: After finally evicting the tenants, it took another month to clean and repair the property before it could be rented out again, leaving the owner with three months of lost rental income.
This situation isn’t uncommon for self-managing landlords. Without proper tenant screening, documentation, and regular inspections, you risk far more than you’re saving by handling everything on your own.
What’s the solution? Professional property management. With experts on your side, you can avoid costly mistakes and protect your most valuable asset.
The Hidden Costs of Self-Managing Your Rental Property
This post is part of our three-part series exploring the risks and challenges of self-managing rental properties. In this series, we dive into real-life examples of costly mistakes landlords face and how professional property management can help protect your investment. Be sure to check out the rest of the series:
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About Power Properties Ltd.
Founded in 1980, Power Properties has been providing hassle-free property management services to property owners, property investors and non-residents with homes in Calgary, Alberta for over 40 years. Our full-service property management includes everything from move in to move out, so you don’t have to worry about the day-to-day operations of your rental property. With a team of licensed professionals, years of experience, and award-winning service, you can rest assured that your property is in good hands.
