If you own rental property in Brooklyn: whether it's a small walkup in Bed-Stuy, a mixed-use building in Bushwick, or a larger multifamily in Flatbush: you've probably asked yourself this question at least once: should I keep managing this myself, or is it time to bring in a professional?
There's no universal answer. The right choice depends on your building's size, your available time, your expertise with NYC regulations, and your long-term investment goals. This guide breaks down the real costs, scenarios, and decision factors so you can make an informed choice for your Brooklyn property.
What Does Self-Managing Actually Involve?
Self-management sounds straightforward until you list everything it includes. As a self-managing owner, you're responsible for:
- Tenant screening and leasing (advertising, showings, background checks, lease preparation)
- Rent collection and bookkeeping (tracking payments, late fees, security deposits, tax documentation)
- Maintenance coordination (finding vendors, getting quotes, supervising repairs, handling emergencies)
- Compliance and legal requirements (HPD registrations, DHCR filings for rent-stabilized units, Local Law 97, lead paint disclosures, annual inspections)
- Tenant relations (noise complaints, lease violations, renewal negotiations)
- Evictions and legal proceedings (when necessary)
For a small 2-4 unit building in Crown Heights or Park Slope where you live on-site, this might feel manageable. But as unit count increases or rent stabilization enters the picture, the complexity grows exponentially.
How Do the Costs Actually Compare?
The surface-level math seems simple: property management fees typically run 7% to 10% of monthly rent. Skip the fee, save money, right?
Not always. Here's a more complete cost framework to consider:
Time Cost
Your time has value. If you're spending 10-15 hours per month on property management tasks, calculate what that time is worth. For many Brooklyn owners with full-time jobs, that "free" self-management costs more than a professional fee when you factor in opportunity cost.
Vacancy Loss
Professional management companies in Brooklyn typically fill vacancies faster through better marketing, established listing networks, and streamlined showing processes. A unit sitting empty for an extra month in Williamsburg or Downtown Brooklyn can cost you $3,000-$5,000 in lost rent: far more than a management fee.
Vendor Pricing
Self-managing owners pay retail rates for plumbers, electricians, and contractors. Brooklyn property management companies negotiate preferred rates through volume relationships. On a $2,000 repair, that difference might be 15-25%.
Compliance Risk
Miss a DHCR filing deadline on a rent-stabilized unit? Forget to register with HPD? Overlook a Local Law 97 benchmark? The fines and legal exposure can dwarf years of management fees. (For more on rent-stabilized compliance, see our guide to rent-stabilized property management.)
Bookkeeping and Tax Coordination
Professional managers provide organized monthly statements, year-end reporting, and 1099 preparation. Self-managing means either doing this yourself or paying a bookkeeper separately.
Legal and Eviction Costs
When evictions become necessary, professional managers know the process, have attorney relationships, and handle it efficiently. DIY evictions often drag out longer and cost more in legal fees and lost rent.
What About Different Building Types?
The self-manage vs. hire decision looks different depending on what you own.
Small Buildings (2-6 Units)
If you own a small building in Bay Ridge, Sunset Park, or Brooklyn Heights and live nearby (or on-site), self-management can work: especially if all units are market-rate. You'll know your tenants personally, handle minor issues quickly, and keep costs low.
But consider professional management if:
- Any units are rent-stabilized
- You have a demanding full-time job
- You live more than 30 minutes away
- Tenant turnover is frequent
Mid-Size Buildings (10-50 Units)
At this scale, self-management becomes a part-time job minimum. Buildings in Bushwick, Flatbush, or Bed-Stuy with 15-30 units generate constant maintenance requests, turnover, and compliance requirements. Most owners at this level find that professional rental property management in Brooklyn actually costs less than DIY when you add up independent manager salaries, accountants, legal consultants, and full-price vendor work.
Mixed Rent-Stabilized Properties
If your building has rent-stabilized units: common throughout Crown Heights, Flatbush, and older Williamsburg properties: the compliance burden alone often justifies professional management. Rent stabilization involves:
- Annual DHCR registrations
- Proper lease renewal procedures (specific timing and language required)
- Rent history documentation
- MCI and IAI tracking
- Overcharge exposure management
One mistake here can result in rent rollbacks, penalties, or years of legal headaches. (Check out our rent stabilization requirements breakdown for details.)
Condo and Co-op Buildings
Condo and co-op management involves board relations, common area maintenance, reserve fund management, and shareholder/owner communication: a different skill set than standard rental management. Professional apartment management companies in Brooklyn with condo/co-op experience handle these complexities while keeping boards informed and buildings well-maintained.
What Should You Ask When Interviewing Management Companies?
If you're leaning toward hiring professional management, ask these questions before signing:
- What's your fee structure? (Flat fee vs. percentage? What's included vs. extra?)
- How do you handle maintenance requests? (Response times? Emergency protocols?)
- Do you have rent-stabilization experience? (Critical for Brooklyn)
- What technology do you use? (Owner portal? Tenant portal? Mobile access?)
- How do you screen tenants? (Credit, background, income verification process?)
- What's your average vacancy time?
- Can I see a sample monthly owner statement?
- How do you handle evictions?
- What vendors do you use, and how are they selected?
- What's your communication style? (Monthly calls? Email updates? Portal only?)
What Are the Red Flags to Watch For?
Not all management companies in Brooklyn deliver equal value. Watch out for:
- Hidden fees for routine services (lease renewals, inspections, vendor coordination)
- Poor communication or slow response times during the interview process
- No rent-stabilization expertise (dangerous if you own regulated units)
- No owner portal or transparent reporting
- Vague answers about vendor selection or markup policies
- High turnover in their own staff
- No local Brooklyn presence (out-of-borough companies may not understand neighborhood dynamics)
Decision Checklist: Should You Self-Manage or Hire?
Use this framework to guide your decision:
Self-management might work if:
- You own fewer than 6 units
- All units are market-rate (no rent stabilization)
- You live within 20-30 minutes of the property
- You have 10+ hours per month available
- You're comfortable with NYC housing regulations
- You have reliable vendor relationships already
Professional management makes sense if:
- You own 10+ units
- Any units are rent-stabilized
- You live far from the property or out of state
- You have a demanding career or other priorities
- Tenant turnover or vacancies are frequent
- You're not confident navigating HPD, DHCR, or Local Law 97
Why Brooklyn Owners Choose LLM
At Landlord Management (LLM), we specialize in Brooklyn property management for owners who want professional oversight without hidden costs or communication headaches.
What sets us apart:
- Transparent pricing: no surprise fees for routine services
- 24/7 owner and tenant portal: real-time access to statements, maintenance, and documents
- Rent-stabilization expertise: we handle DHCR filings, renewals, and compliance so you don't have to
- Vendor cost savings: our volume relationships mean better rates on repairs and maintenance
- Simple, clear communication: you'll always know what's happening with your property
Whether you own a six-unit in Park Slope or a 40-unit in Flatbush, we tailor our approach to your building's needs.
Ready to see if professional management makes sense for your Brooklyn property?Request a proposal and we'll walk through your specific situation: no pressure, no obligation.
Frequently Asked Questions
How much do Brooklyn property management companies typically charge?
Most charge between 7% and 10% of monthly collected rent, though fee structures vary. Some charge flat fees per unit. Always ask what's included versus billed separately.
Is self-management realistic for rent-stabilized buildings?
It's possible but risky. Rent stabilization compliance is complex, and mistakes can result in significant financial penalties. Most owners with regulated units benefit from professional management with DHCR experience.
What neighborhoods in Brooklyn does LLM serve?
We manage properties throughout Brooklyn, including Williamsburg, Bushwick, Bed-Stuy, Crown Heights, Park Slope, Flatbush, Sunset Park, Bay Ridge, Downtown Brooklyn, and Brooklyn Heights.