There are investors who come to a decision after much deliberation on whether to hire a management company or manage the property themselves. In a market like Omaha, where rental rates are generally low, the proportion of management fees can significantly impact the overall return on investment. Looking at the numbers first can make the decision a bit easier.

When outsourcing to a property management company, typically 8 to 12% of the monthly rent is taken as a fee. According to RentCafe data, the average rent in Omaha as of 2026 is $1,338, which is a 2.51% increase from the previous year. At the same time, Zumper reports the average rent to be around $1,250, showing a difference of about $100 between the two sources, but both indicate a continuing upward trend in the market.

If we calculate the management fee at 12% of the monthly rent of $1,338, about $160 would be deducted, and when adding in maintenance reserves, the net income becomes noticeably lower than the gross yield. The industry standard is to set aside about 1% of the asset value annually for maintenance costs, and landlord insurance is typically more expensive than standard homeowners insurance due to broader coverage.

The loan structure also needs to be considered. For investment properties, a down payment of 15 to 25% is usually required, and while a credit score of 620 or higher can secure approval, a score above 740 is needed for favorable interest rates. Lenders only recognize up to 75% of the expected rental income as income, and a lease agreement or rent schedule is necessary, regardless of whether you choose to hire a management company.

Nebraska has no laws limiting rent increases statewide, and there are no rent control ordinances at the city or county level. To raise rent on a month-to-month lease, a written notice must be given at least 30 days in advance, and discriminatory or retaliatory increases are prohibited. The maximum security deposit is one month's rent, and the return period is set at 14 days.

Property taxes in Omaha are among the highest in Nebraska, as Douglas County has the highest effective tax rate in the state. The effective property tax rate in Omaha is around 1.75%, and for a home valued at $245,800, the average property tax bill is $4,295. The overall effective tax rate for Douglas County is 1.747%, which is 36% higher than the Nebraska state average of 1.281%. This means that even if you save on management fees, neglecting property tax burdens can skew the return on investment calculations.

If you are reviewing multiple properties, it is easier to compare them by placing management fees, property taxes, and insurance premiums on one table and calculating the cap rate based on net operating income versus purchase price. When considering a sale, there is also the option of deferring capital gains tax through a 1031 exchange.

There is also significant variation in property tax rates depending on the zip code in Omaha. The 68136 area has an effective tax rate that rises to 2.72%, while the 68137 area remains at around 1.99%. Before weighing the decision to hire a management company or manage the property yourself, it is advisable to first check the actual property tax bill for the property address. Landlord insurance, unlike standard homeowners insurance, includes coverage for rental loss and tenant liability, which also results in higher premiums, so it should be included in your fixed costs along with management fees in your calculations.

When comparing multiple properties, it is useful to organize the cap rates by dividing net operating income by the purchase price. After deducting management fees, property taxes, insurance premiums, and maintenance reserves from net operating income, you may find a different ranking than when looking solely at gross rent. Recent market trends show that properties in Omaha tend to have lower purchase prices, making those with relatively high cap rates still noticeable.

This article is not investment or legal advice, and tax rates and rental regulations may vary by county and property situation, so it is recommended to consult with a real estate professional and accountant before finalizing any contracts.