Renting as an Individual or with a Company? | Midas Management
Are you renting out your apartment yourself, or entrusting it to an expert? We have compared the pros and cons of independent renting versus using a property management company to help you make the right decision.
Reading time: 8 minutes
When deciding to rent out your property, you actually choose from three options: managing the entire process yourself, using a real estate agent to find a tenant, or hiring a full-service property management company for the entire rental period. The time required, risk, and cost of these three solutions differ significantly – and the cheapest option is not always the best choice in the long run.
This article will help you decide which path best suits your situation.
1. Self-management (as an individual, independently)
In this case, the owner advertises the property, screens applicants, signs the contract, and handles daily matters – from maintenance to collecting rent – themselves.
Advantages
No management fee, the full rental income remains with the owner. Complete control over every decision.
Disadvantages
Significant time investment: advertising, handling inquiries, viewings, and contracting. The owner must respond to every issue, even in the evening or on weekends, and also bears the risk of legal and taxation errors.
Who is this solution for?
For those who live in Budapest, have free time and an affinity for administration, and rent out only one or very few properties.
2. Using a real estate agent / broker
A real estate agent is typically involved in the process until a tenant is found: they advertise the property, organize viewings, and help with contracting. After that, daily management returns to the owner.
Advantages
Expert assistance during the tenant search phase and market knowledge to determine a realistic rent.
Disadvantages
After signing the contract, daily operations, maintenance coordination, and financial administration fall back on the owner. In the case of a tenant change, agency fees may arise again.
Who is this solution for?
For those who are happy to handle daily tasks themselves but need help with the time-consuming part of finding a tenant.
3. Full-service property management
A property management company is continuously present as the owner's representative, from the tenant search to daily operations, financial accounting, and the end of the rental period.
Advantages
The owner does not have to deal with daily administration, maintenance, or tenant communication. Professional market pricing, regular accounting, and faster response times support a stable rental relationship.
Disadvantages
When calculating return on investment, the monthly or percentage-based management fee must be taken into account, and the owner is less close to daily decisions.
Aspect | Self-management | Agent | Full-service management |
|---|---|---|---|
Time required | High | Medium | Low |
Continuous presence | Owner | None | Yes |
Maintenance | Owner | Owner | Service Provider |
Financial administration | Owner | Owner | Assisted by Service Provider |
Who is this solution for?
For those who rent out a premium property, do not live in Budapest, own multiple properties, or do not want renting out to be a time-consuming task.
Comparison at a glance
When is it worth switching from a real estate agent to a property manager?
Many owners decide on full-service management when they realize that daily administration takes up more time than they thought, when they had to resolve a problematic tenant situation, when they move abroad, or when they buy multiple properties.
How does Midas Management help you decide?
During the free property assessment, we review which model brings the best results for your property, life situation, and goals. Whether you need a tenant search or full rental life cycle management, Midas Management will propose the right solution.
Frequently Asked Questions
Is it worth hiring a real estate agent if I could handle the rental myself anyway?
If you have the time and affinity for administration and only want to outsource the time-consuming tenant search phase, this can be a good solution. If daily management would also be a burden, it is worth considering full-service property management.
How much more expensive is full-service property management compared to an agent?
This varies by property. For a proper comparison, you should consider not only the fee but also the time, stress, and risk avoided.
Can I switch from a real estate agent to full-service property management in the middle of a rental period?
Yes, this is a common step. The switch is typically easiest when tenants change or during contract renewal, but it is also possible earlier.
What if I am currently dissatisfied with self-management?
A free consultation can help clarify whether you need an agent or full-service management.
Not sure which solution fits your property?
Request a free consultation from Midas Management, and together we will find the best path.
+36 30 551 1722 · info@midaspm.com · Dorottya utca 6., Budapest
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