Should I manage my property myself or hire a property manager?

The option: Manage the property yourself

The do-it-yourself approach is tempting. You retain full control and save on fees. But what does it actually mean to have to manage a property yourself ?

The advantages:

• Cost savings: The most obvious argument. If you manage your property yourself , you keep around 4–5% of the rental income. With an annual income of 50,000 Swiss francs, that's a considerable 2,000 to 2,500 francs that you pay yourself as "salary" if you manage the property yourself .
• Complete control: Nobody knows the house as well as you do. If you decide to manage the property yourself , you decide which tradespeople come and which tenants move in. You have direct access.
• Speed: You don't have to wait for callbacks from the management. If you can manage your property yourself , decisions are made immediately.

The challenges:

to manage their property themselves often underestimate the effort involved.

• Legal know-how: Do you know the difference between termination and extraordinary termination? Do you know how to correctly calculate a rent adjustment based on the reference interest rate? If you want to manage your property yourself , you need to be familiar with tenancy law (Swiss Code of Obligations). A single procedural error can cost you thousands of francs.
• Constant availability: If the heating fails on Christmas Eve, your phone rings. If you want to manage your property yourself , you are the first point of contact for any emergency.
• Emotional distance: It's difficult to remain objective when a tenant tells a story about financial problems. Professionals maintain distance, but you, as the owner who wants to manage your property yourself , are often emotionally involved.

The option: The external administrator

The alternative to managing the property yourself is to hire a property management company. You delegate the responsibilities but retain the rights.

The advantages:

• Professionalism: A property manager knows the laws and the prices of tradespeople. They protect you from mistakes that can happen when laypeople manage a property themselves .
• Time savings: You receive your money monthly and an annual report. The professional takes care of the rest. You don't have to worry about whether you have the time to manage the property yourself .
• Buffer function: The property manager acts as a lightning rod for tenant complaints. They implement unpopular measures (reminders, terminations) objectively – something that is difficult when you have to manage the property yourself and know the tenant personally.

The disadvantages:

Besides the costs, the loss of control is a concern. A poor property manager can diminish the value of the property by letting it fall into disrepair. If you don't want to manage the property yourself , you must at least monitor the property manager.

Checklist: Can I manage my property myself?

Before you decide to manage the property yourself , ask yourself the following questions:

• Do you live nearby?

To manage a property yourself , you need to be able to be on-site. If you live in Zurich and the house is in Ticino, managing the property yourself is almost impossible. Every viewing, every move-out inspection becomes a major undertaking.

• Do you have time?

Managing 4-5 apartments will cost you an average of 10-15 hours per month (accounting, communication, organization). Do you have this time to manage your property yourself ?

• Are you administratively strong?

The utility bill is the ultimate challenge for anyone who wants to manage their own property . You have to collect invoices, apply allocation keys, and submit the bill on time. Mistakes here lead to disputes.

• Can you say "no"?

If you want to manage your property yourself , you have to be tough when the rent isn't paid. Are you the type of person who can handle that?

Hybrid models: The middle ground

be "all or nothing" . Thanks to digitalization, managing your own property is becoming easier.

There are software solutions that can support you if you want to manage your property yourself . They automatically generate utility bills and send reminders for outstanding rent.

Alternatively, you can outsource only parts of the property. You can delegate the commercial administration (accounting) but retain the technical management (tradespeople, building maintenance) and thus partially manage the property yourself . This saves costs compared to a full mandate.

When you definitely shouldn't manage the property yourself

There are scenarios in which experts strongly advise against managing the property yourself :

• Great distance: If you live abroad.
• Large properties: From about 6-8 units onwards, managing the property yourself without professional software and experience becomes a full-time job.
• Complex technology: This applies to buildings with complicated heating or ventilation systems. Laypeople who want to manage their own property often lack the necessary technical understanding.

Conclusion

The decision of whether to manage your property yourself or hire a professional is a balancing act between money and time and nerves.

If you live nearby, enjoy administration, and are not afraid of tenancy law, managing your own property is a lucrative way to increase returns and maintain contact with the grassroots.

However, if your free time is precious to you or you want to avoid conflict, the fee for a property manager is money well spent. Remember: the costs incurred if you make mistakes managing your property yourself (legal disputes, vacancies) are often higher than the fee of a professional.

Maybe start small. Try practicing managing a single apartment yourself . If it becomes too much for you, you can always switch.

If you are unsure how much effort managing your specific property actually entails, or whether digital tools could help you manage the property yourself , Loft offers neutral analyses and modern solutions for owners.

Glossary

• Property management: The professional management of a property by a third party. It is an alternative to having to manage the property oneself .
• Utility bill: The annual statement of consumption-based costs (heating, water). One of the most complex tasks when managing the property yourself .
• Minor maintenance: Repairs that the tenant must pay for themselves (up to approximately CHF 150-200). Anyone who wants to manage the property themselves needs to know where this limit lies.
• Reference interest rate: The relevant interest rate for rent adjustments. Its correct application is mandatory for anyone who wishes to manage their own property .
• Rental law (Swiss Code of Obligations): The Swiss Code of Obligations governs the relationship between tenants and landlords. Sound knowledge is essential to manage a property legally .