If you get your property management wrong, you could lose tens of thousands of dollars. A sketchy property manager could take all your rent and run, leaving you with the bills and no hope of recovering your long-lost rent checks. That’s precisely what happened to today’s guest, a seasoned real estate investor who’s even looked up to as an expert in the industry. Even he made a sizable property management mistake, and in this episode, we’re trying to help you avoid the same fate.
The BiggerPockets Podcast Network is bringing you a crossover episode with the Real Estate Rookie podcast’s Ashley Kehr and the BiggerPockets Money podcast’s Scott Trench. Scott is not only the host of BiggerPockets Money but also the CEO of BiggerPockets. And today, he’s sharing every painful detail about how he lost over $40,000 by hiring a bad property manager. This IS an avoidable mistake, but some easily overlooked red flags could put you in the same position as Scott unless you’re very careful.
Scott shares the entire story and gives the top red flags to look out for. He’ll explain why he DOESN’T give his whole portfolio to one property manager, why you MUST set communication standards from the start, the questions EVERY investor should ask before hiring a property manager, and the fees you should refuse to pay the next time you outsource your property management. Need a property manager? We’ll share the best tool ANYONE can use to find a property manager TODAY!
In This Episode We Cover
Deadly property management red flags and signs you should run from a property manager
Why you never, EVER give your entire portfolio to a single property manager/property management company
Simple questions to ask that immediately show if a property manager is legit
Negotiating fees and why Scott is okay with paying a higher monthly rate
Communication expectations and what a property manager should be sending you EVERY month
The easiest way to find a great property manager wherever you invest
And So Much More!
(00:00) Intro
(01:31) Hiring the Property Manager
(03:48) Things Start Going Wrong
(06:23) Losing $40K!
(09:43) Property Manager Red Flags
(15:50) Questions You MUST Ask
(23:45) Negotiating Fees
(30:16) Asset Type Matters!
(35:05) Communication Expectations
(37:40) Vetting for Legitimacy
(43:27) Find a GREAT Property Manager
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-418
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