DIY or placement service: what does the math say?
The real comparison isn't service fee vs zero. It's TOTAL expected cost — vacancy, time invested, bad-tenant risk — weighted by probabilities. Here's the math, brutal and honest.
Comparison
Your assumptions
Common to both scenarios
Typically 50-100% of one month
If you do it yourself
With a specialized service
Enter monthly rent to compare scenarios.
Methodology
How total cost is calculated
For each scenario (DIY and service), we sum four cost categories. The total represents the mathematical expectation of cost — the average expected cost, which can be higher or lower in any specific case.
1. Service fee
Zero for DIY. For the service: the announced fee, generally between 50% and 100% of one month's rent for a specialized placement in Quebec.
2. Lost rent during vacancy
Monthly rent × vacancy days ÷ 30. DIY typically has longer vacancy (40-60 d on average); a specialized service drops to 15-25 d thanks to professional listing, rigorous pre-screening, and an existing candidate pool.
3. Cost of your time
Hours invested × your hourly opportunity rate. That's the money you DON'T earn while filtering candidates at 10 PM or coordinating Saturday visits. Often overlooked in the DIY math — it's the angle that flips the decision.
4. Risk cost (bad tenant)
Probability × full bad-tenant cost. Without rigorous verification, risk runs 5-12%. With a service including credit, references, TAL, and OACIQ signing, risk typically drops below 2%. The probability-weighted gap × cost ($15,000 median) creates a huge spread — often invisible until you compute it.
Full formula
Total costscenario = fee + (rent × vacancy_days ÷ 30) + (hours × hourly_rate) + (bad_tenant_probability × bad_tenant_cost)
The winning scenario is the one with the lowest expected total cost. The difference between both totals is the net advantage of the service (positive) or DIY (negative).
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Frequently asked questions
Practical answers for tenants and owners across Greater Montreal.
- Why include the cost of my time?
- Because your time has value — time spent on placement is time NOT going to your main work, family, or other investments. Even at a modest $30/hr, 25 hours of placement equals $750 of real opportunity cost. That's the angle that often flips the DIY/service math.
- How do I estimate bad-tenant probability?
- Without rigorous verification (credit, phone references, TAL search, employment validation), the observed rate in practice is 5-12% depending on process quality. With full professional verification and an OACIQ broker coordinating signing, the rate typically drops below 2%. Our 8% vs 1.5% defaults reflect the Quebec market reality.
- Is the $15,000 bad-tenant cost realistic?
- It's the median observed in Quebec in 2024-2026 — based on average TAL delay (4-9 months), typical arrears, damages, legal fees, and post-eviction vacancy. A light case can be $6,000-$8,000; a heavy case with significant damage can exceed $25,000. Our dedicated 'Bad tenant cost' tool lets you fine-tune by scenario.
- Can the math favour DIY?
- Yes, in specific scenarios: owner with lots of available time AND screening experience AND a locally tight market (short guaranteed vacancy) AND solid verification capability (already done Equifax credit with consent). If you check those 4 boxes, math can flip to DIY. For most owners without that combination, the service wins.
- Is a one-month-rent service fee a good benchmark?
- It's the Quebec-market median for a specialized tenant placement. Some services charge less (50% of one month) with lighter verification; others more (up to 1.5 months) with a fuller service including pro photos and an OACIQ broker for signing. Our fee is shared during the free evaluation — it depends on unit type, city, and complexity.
- Does this calculation account for quality of life?
- Not directly — it quantifies financial costs and time opportunity cost. The stress of evening visits, callbacks to filter candidates, and fear of signing with the wrong profile aren't in the math. For many owners, that's what tips the balance toward the service even when the math is close: delegating stress has real value.
AA Location — Specialized placement service
Make the math real — turn ROI into reality
Professional listing, rigorous pre-screening, full verification, lease signing coordinated by an OACIQ broker. You keep the final decision. Free evaluation, no commitment.