Do I include property management if I self-manage?
Yes, include it. A management fee belongs in operating expenses whether or not you pay one, because self-managing is a job you are doing for free. Leave it out and the property looks better than it is, and you cannot compare it to one that is professionally managed.
Why it matters
It is the difference between the property earning a return and you earning a wage you forgot to bill for. It also matters at exit: a buyer will underwrite with a management fee, so a valuation built without one falls apart the moment you try to sell.
What it does to the number
Setting management to 0% on a $2,200/month rental removes about $2,000 a year from expenses. That lifts NOI, and at a 6% cap it inflates the implied value by roughly $33,000 — a valuation gain produced entirely by not paying yourself.
Worth knowing
- 8% of collected rent is the default here. Single-family typically runs 8–10%, small multifamily somewhat lower.
- It is charged on collected rent, so it comes after the vacancy haircut, and it excludes ancillary income.
- Leasing fees and renewal fees are usually separate from the monthly percentage.
- If you self-manage, treat the fee as what you are paying yourself — then decide whether the job is worth it.
The rule this calculator locks
A management fee (% of collected rent, default 8%) is included even when the owner self-manages, because $0 management overstates real-world performance.