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Is it actually profitable to let a property management company rent out your apartment?

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Vic_B
Joined:
20.06.2020
Posts: 2453
Topic Starter
04.06.2025 04:42
I'm thinking about buying a small condo to rent out, but I don't really have the time to deal with tenants, maintenance issues, and late rent payments. A friend suggested hiring a property management company to handle everything from A to Z. However, when I calculate their fees-usually around 8 to 10 percent of the monthly rent plus placement fees-it feels like it might eat up all my profits. For those of you who use one, do you still make a decent passive income, or is it not worth the hassle?
13 replies in this topic
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Oli_L
Joined:
16.07.2022
Posts: 40
01.08.2025 09:18
Honestly, if you have zero free time, it's the only way to do it. Just factor their fees into your initial math before buying the condo.
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SomeoneSomewhere
Joined:
05.07.2020
Posts: 491
23.08.2025 11:15
In reply to a previous post
I completely agree with the first point. If the numbers don't work with the 10% fee included, then it's simply a bad investment and you shouldn't buy that specific property.
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Amelie_Z
Joined:
14.06.2025
Posts: 725
24.10.2025 15:10
My experience has been a mixed bag. The company I hired is great with maintenance, but their tenant placement fee basically took my entire first month's rent every year.
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Profit_Maker
Joined:
30.11.2023
Posts: 1300
03.11.2025 06:16
In reply to a previous post
That sounds brutal! A whole month's rent just for placement seems high. Mine only charges half a month.
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Lida_C
Joined:
16.07.2020
Posts: 123
03.11.2025 09:16
You are trading cash flow for peace of mind. Are you willing to take midnight phone calls about a leaking toilet? If not, pay the fee.
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Lida_C
Joined:
06.01.2025
Posts: 1380
06.12.2025 03:44
In reply to a previous post
Spot on. People forget about the mental toll of being a landlord.
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Alice_K
Joined:
30.04.2024
Posts: 1059
10.12.2025 18:41
I tried self-managing for six months and hated every second of it. Handed it over to a management company and my profits dropped, but I finally got my weekends back.
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SomeoneSomewhere
Joined:
24.08.2021
Posts: 1590
28.12.2025 10:37
In reply to a previous post
How did you find a reliable company? There are so many shady ones out there.
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greg_b
Joined:
30.12.2020
Posts: 1080
14.01.2026 06:43
In reply to a previous post
Look for local, independent agencies rather than the big national chains. They usually care more about your specific property.
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Gosh_Bolo
Joined:
13.09.2025
Posts: 2279
28.01.2026 07:19
If your profit margin is so razor-thin that an 8% fee wipes it out entirely, you are buying the wrong property in the wrong location.
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Nico_N
Joined:
21.09.2024
Posts: 2373
08.03.2026 05:35
In reply to a previous post
This right here. Real estate investing is all about the numbers. Don't buy a negative cash flow property hoping management will magically fix it.
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robert_d
Joined:
10.12.2024
Posts: 1419
27.03.2026 21:31
Make sure you read the contract carefully. Some companies charge hidden fees for things like routine inspections or coordinating repairs.
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Max_D
Joined:
03.03.2024
Posts: 2281
10.04.2026 16:24
In reply to a previous post
Great advice about the hidden fees. Also check what the penalty is if you want to fire them and switch to another company.

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