Why is it so hard to find a good property manager?

Question

Hey everyone,

Full transparency, I'm a property manager myself, and this post is about learning, not pitching anything. I’m always looking to improve what I do, and honestly, the best way I know how to do that is to ask the people I'm serving.

What do most property managers get wrong and what do you wish more property managers understood?

I’ll go first. I think many property managers operate from a “minimize complaints” mindset instead of owning hard conversations and giving clear, strategic recommendations.

If you were hiring a property manager today, what actually matters to you?

• What grabs your attention?
• What are your must haves?
• Where do you look for them?  Bigger Pockets, Google, Instagram?

A lot of managers can look good on paper.  But what things make you think "yeah, this person gets it, I can trust them with my investment?”

If you’ve had a great manager, what did they do differently?
If you’ve had a bad one, what went wrong?

Would love a real conversation about this, no pitching, just honest answers about what makes the best property managers in your opinion.

This community has more hard-earned investor perspectives than anywhere else.

I appreciate your time!

Drew Sygit · Answer

We have more challenges with inexperienced investors than experienced ones.

Many newbies are clueless about the realities of rentals😒

The 2nd biggest challenge is with investors transistioning from DIY management to hiring a PMC.
- Some think they're hiring a personal assistant that should be available 24/7😝
- Some can't seem to grasp that while they may have done some things better than a PMC, a good PMC will actually do more things better than them.
- Others want to micro manage everything because they think they know better.

On the other side, many PMCs aren't really running a business. All they know how to do is put out today's fires and MAYBE avoid tomorrow's. They also seem to communicate as little as possible and not very thoroughly when they do😣

James Jones · Answer

Most property managers get one thing wrong. They manage tasks, not assets.

If I am hiring today, here is what actually matters:

Clear underwriting standards

Show me your screening criteria in writing. Credit floor. Income multiple. Rental history requirements. No “it depends.”

Delinquency process

What happens on day 1 late? Day 5? Day 10? When do you file? I want a system, not emotion.

Vendor controls

Do you bid large jobs? Do you mark up? How do you prevent scope creep? How do you document before and after?

Communication cadence

I do not want random updates. I want structured reporting. Monthly owner statements. Vacancy updates weekly. Bad news early.

Asset mindset

Are you advising on rent increases, CapEx timing, and lease strategy? Or just forwarding emails?

Green flags:

Proactive rent comps before lease expiration.

Photos with every turnover.

Hard conversations about bad tenants.

Clean financials that reconcile.

Red flags:

Overpromising rent.

Fear of eviction.

Vague answers about process.

High turnover on their own team.

The best managers think like operators. The bad ones think like customer service reps.

Trust comes from systems, not personality.

Drew Sygit · Answer

Written systems and procedures.

Chris Seveney · Answer

The first issue we have is getting across with the property management agreement. We completely understand that the property manager is not responsible for what the tenant does. But the majority of the agreements I see have the owner responsible and to indemnify the property manager even if the property manager is doing something illegal. So first I have to get through all the contracts. The next thing is, how do they track payments? We have seen some who use no third-party system and just send you money, but when you have ten doors with that property manager, you have no idea which one it is for or who is paying and who is not. If people want to get rich, my recommendation is to go start a property management company in a rural area. The quality is awful

Chris Seveney · Answer

even that i push back on - especially gross negligence which is nearly impossible to prove.

I indemnify for my mistakes and they indemnify for theirs.

Matt Sutton · Answer

Couldn't agree more.  Communication, transparency, and unrealistic expectations can make or break a business.  Drew, what do you see the biggest difference being between a PMC putting out fires and one that's running a real business?

Drew Sygit · Answer

Haven't seen any of our competitor PMAs requiring an owner to indemnify the PMC for illegal activities.

Most exclude illegal and fraud issues.

They do include indemnification for errors though, except gross negligence.

Richard F. · Answer

As a retired Residential PM, NOT an owner of the company or rentals, I have had quite a few different Client Owners over 30 years. I always strive to just shoot straight with them. They don't always like it, and, a very few fired us because of that, but far more stayed with us for many years. I had a couple of Clients that, on their own accord, changed management companies soon after I did, because of my systems, all around operational knowledge, and, frankly, trust.

Through all the years, and with anywhere from 100 - 800 units under my oversight, I never provided my cell number to anyone but Vendors, Owners, and of course Staff. Tenants were instructed from Day 1, only call office phone, leaving voice mail if no live answer (our systems all had an "after hours" emergency function), or email. All were checked whenever I returned to my desk, and responded to in some manner (either scheduling a service call or informing when I would have a complete response for them) within one business day (or less for the actual emergencies, obviously). Depending on the company I was working for, we had in-house Maintenance Staff, which, properly staffed with competent people, is ideal; or, I used a mix of Licensed Contractors and unlicensed Handymen for specific tasks, or in cases where Client Owners had preferred vendors (with appropriate release of our liability). When you fail to respond timely, you usually generate yet another call or email to take up more of your time.

Also, when considering whether to accept Management of a property, I insisted on at least a partial walk through of the property with the owner, and a full discussion of our Standards, Processes, and certain documents. When Owners want to limit spending to a ridiculous low amount, I remind them of the cost for a simple R & R of a toilet, or water heater, or refrigerator, and why we have to use licensed and insured vendors for the most part. I would require their maximum spend without approval to be an amount that would allow for that high of an expenditure, or, more simply (usually) maximum equal to one month rent, so we would not have to request funds back from them to handle a routine issue. I also clearly explained the laws with regard to dealing with actual emergencies (fire, flood, sudden major damage) as well as resolution timelines required. I will push the fact they need to have something significant for reserves if a major issue arises or if they are already aware of a needed roof replacement or other issues. I also don't hesitate to push for a reno if the unit is in poor condition. I lay out the expected increase in rents and property value, as well as the higher quality of Tenants that will be attracted, leading to a long period of minimal expenses and turnovers, and far fewer headaches for all involved.

When I perform a walk through with an Owner, if a Tenant is present I just look and take some pics, then give the Owner my unbridled opinion and recommendations of what needs to be done, and why. Primarily, I advise them, I am lazy. I do not want properties or tenants that are crap. Owners need to provide clean, safe, secure units, and Tenants need to meet their obligations of paying on time and taking reasonable care of the Owners property. I also make it clear this has little to do with the income level of Tenants.

I developed my maintenance standards when I was handling over 100 Section 8 units in 1940 and 1950 detached homes and walk up apartments. It's all about attracting, approving, and managing the top 10% of the tenant pool for a particular rental tier. There are good and bad prospects in every tier. The bad rich ones are actually the worst! Finishes will vary from higher priced units, but that does not change the basic standard.

Zachary Elliott · Answer

Also in property management but from my side of the table, the biggest gap I see is managers underestimating how much trust is built (or destroyed) by communication and transparency. Investors don’t just want rent collected; they want to understand what’s happening with their asset and why decisions are being made the way they are.

Why is it so hard to find a good property manager?

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