Tips on Diversifying Property Managers and Having an Exit Strategy

This chapter explores the significance of diversifying property managers for risk management and having an exit strategy in place. It stresses the importance of proactive management and introduces a property manager finder tool on BiggerPockets to help investors locate top-tier property managers.

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Episode notes

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!

Links from the Show

BiggerPockets Money Facebook Group

Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums

Finance Review Guest Onboarding