Our Experience with Out-of-State Turnkey Rentals

Member since 2026 · 35 posts · 45 votes

We purchased out-of-state rental properties through Rent to Retirement last year and I wanted to share a straightforward reflection on the experience so far.

From a process standpoint, the acquisition side was smooth. The team was responsive, and the property selection and closing process were organized. It did feel fairly turnkey from purchase through onboarding.

As part of the purchase, the properties also came with one year of property management included. However, the post-purchase experience ended up being more challenging than expected. Both units in the duplexes consistently had late rent issues, and ultimately both properties experienced tenant problems that led to evictions within the first year of ownership. While tenant issues and evictions are part of rental property ownership in general, the combination of ongoing late payments and eventual evictions had a meaningful impact on cash flow and performance.

The bigger takeaway for us has not been about any one company specifically, but about strategy. We underestimated the importance of being local and hands-on. Even with a “turnkey” model that included built-in property management, we learned that strong day-to-day oversight, tighter screening control, and the ability to respond quickly are critical factors in outcomes.

Our conclusion from this experience is simple: going forward, we will focus on properties we can manage ourselves locally. That level of control and proximity is something we now see as essential to how we invest.

Every investor’s situation is different, and this reflects our personal experience.

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Stuart UdisPro Member

Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes

2mo

@Samantha Andrews Unfortunately, one of the biggest mistakes investors make in this situation is failing to properly price risk and account for the true realities of operating expenses and capital expenditures in these markets. On paper, the spreadsheet almost always paints a more favorable picture than what ultimately unfolds in practice. That's why I'm often skeptical when I observe investors immediately after closing on their first out-of-state property, what a great experience it has been and what an incredible investment they've acquired. At that stage, they haven't owned the property long enough for the operational realities, unexpected expenses, and management challenges to fully reveal themselves.

In many instances even closer proximity and hands on approaches are not enough to turn the tide as the underlying real estate is the bigger issue. When I hear both units in the duplex you acquire had trouble tenants that has me believing the underlying real estate is the core issue. Wish more investors would come forward and post stories like the one you shared. It would help investors better appreciate the risks associated with the strategy you sought out.

[email protected]

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 8k+ votes
2mo
Going to guess the real problem was the PMC was under pressure to focus on SPEED instead of QUALITY.
A big part of that was probably systemic - pressure from the builder, RTR, etc., to impress you so you buy more.
The rest was on YOU - for not taking the time to understand the PMC's screening process and making an attempt to adjust it to get tenants that better met your expectations.
There's an old landlord saying about, "it's better to deal with the pain of a vacancy instead of the pain of a nonpaying tenant".
It appears you may be making the "knee jerk" decision that all PMCs are incompetent, so you're better off DIY managing.
- While you're wrong to lump all PMCs together, you may be able to adequately DIY manage.
Good luck!
[email protected]248-209-6824
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Samantha Andrews
OP
Member since 2026 · 35 posts · 45 votes
2mo
Yes—this was our first time working with a property management company. We self-manage multiple local properties and, in this case, we incorrectly assumed the built-in property management promoted by Rent to Retirement would handle what we consider basic requirements.

I’m sure there are strong property management companies out there, but I’m not prepared to spend additional time vetting multiple firms for a single property out-of-state.

We have a solid track record self-managing our local properties, consistently placing respectful tenants who pay on time through rigorous screening practices and consistent policy enforcement. In practice, I can manage my properties more effectively myself, and it has proven to be less work than trying to micromanage a property management company that is not meeting baseline performance expectations.
1 Reply
Jules Aton
MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
2mo
Appreciate you sharing your experience. Not a fan of this business model. I hope you are able to sell the units and move on.
2 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2mo
@Samantha Andrews Seems you have a fair amount of real estate experience. What led to purchasing in a distant market in the first place?
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1 Reply
Samantha Andrews
OP
Member since 2026 · 35 posts · 45 votes
2mo
@Stuart Udis We were lured by the cash flow opportunities in other markets. It is becoming increasingly difficult to find deals in our buy box locally. Diversification seemed like a smart idea—and it probably still is if you get the right team in place. Instead, I got an expensive, but ultimately valuable, education that will make me a smarter investor in the long run.
1 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2mo
@Samantha Andrews Unfortunately, one of the biggest mistakes investors make in this situation is failing to properly price risk and account for the true realities of operating expenses and capital expenditures in these markets. On paper, the spreadsheet almost always paints a more favorable picture than what ultimately unfolds in practice. That's why I'm often skeptical when I observe investors immediately after closing on their first out-of-state property, what a great experience it has been and what an incredible investment they've acquired. At that stage, they haven't owned the property long enough for the operational realities, unexpected expenses, and management challenges to fully reveal themselves.
In many instances even closer proximity and hands on approaches are not enough to turn the tide as the underlying real estate is the bigger issue. When I hear both units in the duplex you acquire had trouble tenants that has me believing the underlying real estate is the core issue. Wish more investors would come forward and post stories like the one you shared. It would help investors better appreciate the risks associated with the strategy you sought out.

[email protected]
5 Reply
Samantha Andrews
OP
Member since 2026 · 35 posts · 45 votes
2mo
@Stuart Udis, I appreciate your perspective. I’m currently weighing two options: selling at a loss now to exit the market, or continuing to actively manage and oversee the property management company for the next few years in hopes of reaching a break-even point or eventually selling at a modest profit.

In the meantime, I’ve taken a more proactive approach with the property management company. I provided them with a detailed operating policy outlining exactly how I expect my rental business to be managed and requested that they review, sign, and date the document to confirm alignment.

I’ll admit, I feel almost embarrassed having to spell out some of these expectations because many of them seem like basic standards that should already be part of a professional property management process. However, based on my experience so far, creating this level of structure and documentation feels like the only way to correct the issues and make sure the property is being managed in a way that protects the investment.

My takeaway for anyone considering a property management company is this: don’t assume that “professional management” means the company is actually competent at managing properties. Scrutinize everything they do, ask questions, and don’t be afraid to dig into the details. You have to stay involved and verify that decisions are being made in the best interest of your investment. Any task beyond routine, basic operations should require the owner’s approval—especially anything that impacts finances, tenants, repairs, or long-term strategy. Clear expectations, written procedures, documentation, and ongoing oversight are essential. Without that structure, decisions will likely be made based on the easiest or most convenient path rather than the approach that best protects the owner’s investment over time. In some cases, having a “professional” management company can require nearly as much oversight—and sometimes more active work—than self-managing the property directly.
That said, this is just my experience and may not reflect how all property management companies operate. I’m sure others have had different outcomes, but I will say that not micromanaging in our case has cost us financially.
1 Reply
- Drew SygitBusiness Member
  Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 8k+ votes
  2mo
  Quote from @Samantha Andrews:
  
  @Stuart Udis, I appreciate your perspective. I’m currently weighing two options: selling at a loss now to exit the market, or continuing to actively manage and oversee the property management company for the next few years in hopes of reaching a break-even point or eventually selling at a modest profit.
  
  In the meantime, I’ve taken a more proactive approach with the property management company. I provided them with a detailed operating policy outlining exactly how I expect my rental business to be managed and requested that they review, sign, and date the document to confirm alignment.
  
  I’ll admit, I feel almost embarrassed having to spell out some of these expectations because many of them seem like basic standards that should already be part of a professional property management process. However, based on my experience so far, creating this level of structure and documentation feels like the only way to correct the issues and make sure the property is being managed in a way that protects the investment.
  
  My takeaway for anyone considering a property management company is this: don’t assume that “professional management” means the company is actually competent at managing properties. Scrutinize everything they do, ask questions, and don’t be afraid to dig into the details. You have to stay involved and verify that decisions are being made in the best interest of your investment. Any task beyond routine, basic operations should require the owner’s approval—especially anything that impacts finances, tenants, repairs, or long-term strategy. Clear expectations, written procedures, documentation, and ongoing oversight are essential. Without that structure, decisions will likely be made based on the easiest or most convenient path rather than the approach that best protects the owner’s investment over time. In some cases, having a “professional” management company can require nearly as much oversight—and sometimes more active work—than self-managing the property directly.
  That said, this is just my experience and may not reflect how all property management companies operate. I’m sure others have had different outcomes, but I will say that not micromanaging in our case has cost us financially.
  
  Samantha,
  We fully understand the challenges OOS investors face in trying to find competent PMCs!
  Also HATE it when other PMCs make our industry look bad😡
  So, DM me if you'd like to chat about possible solutions to deal with your underperforming PMC🙃
  Would like your opinion please, on this copy & paste info we often post to help investors better understand the possibility of what you've been through and how to avoid it:
  -----------------------------------------------------------------------------
  We’re a Property Management Company (PMC) in Metro Detroit ONLY, with 25+ years of experience, and we’ve seen owners make the same mistakes, over & over again when looking to hire a PMC – which drives us nuts!.
  
  In our experience, the #1 mistake owners make is ASSUMING all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY.
  
  So, owners mistakenly think price is the only differentiator – and look for a PMC like they’d shop for groceries☹
  
  We encourage you to learn from the mistakes of others by reading posts here on BiggerPockets from owners that picked a PMC solely by price and regretted it.
  
  We recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.
  
  Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.
  
  Even if someone gives you a referral, do NOT make the mistake of assuming that just because a PMC met their expectations, they’ll meet your expectations. We all have our own expectations and what works for someone else, may not work for you.
  
  If you’re new to all of this, it's often a case of not doing enough research, as you don't know what you don't know!
  
  So, ask more questions!
  
  EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
  
  This also leads owners to ASSUME simpler is better when it comes to management contracts.
  
  The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
  
  A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?
  
  We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
  
  EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
  
  P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
  
  Here’s some articles we’ve contributed to BiggerPockets about screening a PMC BETTER than you would a tenant!
  
  20 Questions to Ask When Vetting a Property Management Company: Processes
  
  13 Questions to Ask to a PMC: Communication and Documentation
  
  24 Questions to Ask When Evaluating a Property Management Contract
  [email protected]248-209-6824
  Logical Property Management4.9450 Reviews
  Website View Page
  1 Reply
- Jules Aton
  MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
  2mo
  Quote from @Samantha Andrews:
  
  @Stuart Udis, I appreciate your perspective. I’m currently weighing two options: selling at a loss now to exit the market, or continuing to actively manage and oversee the property management company for the next few years in hopes of reaching a break-even point or eventually selling at a modest profit.
  
  In the meantime, I’ve taken a more proactive approach with the property management company. I provided them with a detailed operating policy outlining exactly how I expect my rental business to be managed and requested that they review, sign, and date the document to confirm alignment.
  
  I’ll admit, I feel almost embarrassed having to spell out some of these expectations because many of them seem like basic standards that should already be part of a professional property management process. However, based on my experience so far, creating this level of structure and documentation feels like the only way to correct the issues and make sure the property is being managed in a way that protects the investment.
  
  My takeaway for anyone considering a property management company is this: don’t assume that “professional management” means the company is actually competent at managing properties. Scrutinize everything they do, ask questions, and don’t be afraid to dig into the details. You have to stay involved and verify that decisions are being made in the best interest of your investment. Any task beyond routine, basic operations should require the owner’s approval—especially anything that impacts finances, tenants, repairs, or long-term strategy. Clear expectations, written procedures, documentation, and ongoing oversight are essential. Without that structure, decisions will likely be made based on the easiest or most convenient path rather than the approach that best protects the owner’s investment over time. In some cases, having a “professional” management company can require nearly as much oversight—and sometimes more active work—than self-managing the property directly.
  That said, this is just my experience and may not reflect how all property management companies operate. I’m sure others have had different outcomes, but I will say that not micromanaging in our case has cost us financially.
  Definitely consider sunk cost fallacy. Been there, done that with stocks and in hindsight feel like an idiot.
  1 Reply
Terra Padgett
Investor · Houston, TX · Member since 2022 · 126 posts · 122 votes
2mo
Thank you for sharing your experience. I've contemplated, looked into, and researched out of state rentals via a number of turnkey providers for about the last 5 years now. Even got under contract before (but deal fell through). I've wanted to hear positive experiences from those who are owners of out of state turnkey rentals, but of the few people I've connected with who've done it, none have shared experiences that make me excited to invest in the space. Thank you again for sharing.
3 Reply
John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
2mo
The biggest problem with out of state investing with a PM is turnovers. As we all know, turnovers within a few years absolutely crushes profits. And a PM doesn’t care about turnovers. They make more money in most cases handling it and getting a finder fee with the next tenant. I self manage 21 properties out of state because it’s fairly easy and I like to keep my tenants under market rent so they never want to leave. If I’m one of the cheapest rentals in town and take good care of my tenants, then they will most likely stay with me for many years. It sounds simple, but that’s my strategy. I also self manage 18 properties within 30 minutes of where I live. Same strategy and I have very few turnovers. But cash flow from out of state rentals is much better. Just make sure you’re a good landlord to your tenants and keep them under market rent. If you can do this, you’ll be set for many years with very few turnovers which makes this hobby passive.
1 Reply
Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
2mo
Quote from @Samantha Andrews:

We purchased out-of-state rental properties through Rent to Retirement last year and I wanted to share a straightforward reflection on the experience so far.

From a process standpoint, the acquisition side was smooth. The team was responsive, and the property selection and closing process were organized. It did feel fairly turnkey from purchase through onboarding.

As part of the purchase, the properties also came with one year of property management included. However, the post-purchase experience ended up being more challenging than expected. Both units in the duplexes consistently had late rent issues, and ultimately both properties experienced tenant problems that led to evictions within the first year of ownership. While tenant issues and evictions are part of rental property ownership in general, the combination of ongoing late payments and eventual evictions had a meaningful impact on cash flow and performance.

The bigger takeaway for us has not been about any one company specifically, but about strategy. We underestimated the importance of being local and hands-on. Even with a “turnkey” model that included built-in property management, we learned that strong day-to-day oversight, tighter screening control, and the ability to respond quickly are critical factors in outcomes.

Our conclusion from this experience is simple: going forward, we will focus on properties we can manage ourselves locally. That level of control and proximity is something we now see as essential to how we invest.

Every investor’s situation is different, and this reflects our personal experience.
Hi Samantha, thanks for sharing your experience. I think one of the biggest lessons for newer investors is that "turnkey" doesn't necessarily mean "hands-off." Even with a property manager in place, the quality of tenant screening, rent collection processes, communication, and overall oversight can have a huge impact on performance. Tenant issues can happen in any market and with any management company, but having clear expectations, reviewing reports regularly, and staying involved often makes a big difference. On the flip side, I know plenty of investors who have built successful out-of-state portfolios, but they usually spend a lot of time upfront building a strong local team and verifying that everyone is aligned with their investment goals. It sounds like you took away some valuable lessons about the level of control and involvement that fits your investing style, and that's knowledge that will likely help you make even better decisions on future acquisitions.
[email protected]614-300-7535
Jimmy Lieu, Red 1 Realty4.9119 Reviews
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1 Reply
Shiloh LundahlPro Member
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
2mo
Hi@Samantha Andrews my experience with out-of-state property managers are there are some good ones and some bad ones. However, what I find even better than having a property management company is having an assistant manager properties. This means that you may need to have more properties for that assistant to manage. An assistant in my opinion is much better than property management company because your assistant's top priorities with your properties or whatever you tell them they are. Additionally, I like the lease option model much better than your regular rental model because tenant buyers tend to take care of properties much better than your average renter and they come in with an option fee upfront, which, if they don't exercise the option, that option fee is helpful to get the property repaired for the next tenant buyer who also gives you an option fee. So turnovers are not usually as costly of an experience where you lose months of rent and cash flow because of repairs. I did this model out of state for a couple years until my business partner and I split up the company and he kept the out-of-state properties and I kept the ones in state.
480-206-1209 Podcast Guest on Show #287
1 Reply
Jordan RayBusiness Member
Real Estate Agent · Memphis, TN · Member since 2023 · 623 posts · 321 votes
2mo
Quote from @Samantha Andrews:

We purchased out-of-state rental properties through Rent to Retirement last year and I wanted to share a straightforward reflection on the experience so far.

From a process standpoint, the acquisition side was smooth. The team was responsive, and the property selection and closing process were organized. It did feel fairly turnkey from purchase through onboarding.

As part of the purchase, the properties also came with one year of property management included. However, the post-purchase experience ended up being more challenging than expected. Both units in the duplexes consistently had late rent issues, and ultimately both properties experienced tenant problems that led to evictions within the first year of ownership. While tenant issues and evictions are part of rental property ownership in general, the combination of ongoing late payments and eventual evictions had a meaningful impact on cash flow and performance.

The bigger takeaway for us has not been about any one company specifically, but about strategy. We underestimated the importance of being local and hands-on. Even with a “turnkey” model that included built-in property management, we learned that strong day-to-day oversight, tighter screening control, and the ability to respond quickly are critical factors in outcomes.

Our conclusion from this experience is simple: going forward, we will focus on properties we can manage ourselves locally. That level of control and proximity is something we now see as essential to how we invest.

Every investor’s situation is different, and this reflects our personal experience.

Welcome to BiggerPockets! Thanks for sharing your experience. I think one of the biggest misconceptions newer investors have is that "turnkey" means "hands-off," when in reality every rental property still requires oversight, even if you have professional management in place. That's one reason I encourage investors looking at markets like Memphis to spend time understanding the neighborhoods, rents, market trends, and local operators before buying. A strong property manager is important, but so is having a solid boots-on-the-ground team that includes an investor-friendly agent who also owns rentals, a reliable general contractor, and lending contacts who understand the local market. Even as an out-of-state investor, the more local expertise you can surround yourself with, the better your odds of success. I don't necessarily think your experience means out-of-state investing doesn't work, but it does highlight that the quality of the team and ongoing oversight can be just as important as the property itself. That's why I always recommend investors start building those relationships early and learn the market before they buy, rather than relying solely on a turnkey provider to handle everything. Feel free to reach out, talk soon!
[email protected]662-642-1458
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2 Reply
Samantha Andrews
OP
Member since 2026 · 35 posts · 45 votes
2mo
I appreciate everyone’s input and feedback on my post. The range of perspectives has contributed to a constructive discussion around the issue.

I shared my experience in order to provide other potential out-of-state investors with a more complete picture of what they may encounter.

I also contacted Rent to Retirement to share my experience. They were sympathetic, but ultimately do not have control over the property management company and were unable to provide any financial assistance, which we understand.

A key takeaway for me is that, while an investment may be marketed as “turnkey,” the company facilitating the sale does not have the ability to guarantee a "turnkey" experience. They function only as an intermediary. As a result, it is essential for investors to independently and thoroughly vet both the builder and the property management company, rather than trust in the reputation of the company facilitating the sale. Looking back, we recognize that we did not conduct sufficient independent due diligence.
2 Reply
Jon Westrom
Property Manager · Fort Worth, TX · Member since 2014 · 77 posts · 29 votes
2mo
This is one of the most honest posts I've seen on here in a while... and it points to something most turnkey pitches don't tell you. Built-in management that came with the deal is almost never the same as management that's accountable to you. The PM's client is whoever hired them ... and in a turnkey deal, that's usually not you. Tenant screening and day-to-day responsiveness are where the real money is made or lost. Glad you figured it out early, most people learn this lesson a lot more expensively.
1 Reply
Tabish MasoodPro Member
Investor · Sterling, VA · Member since 2026 · 89 posts · 48 votes
2mo
Thank you for sharing this. One thing I think newer investors often overlook is that “turnkey” doesn’t eliminate risk—it primarily shifts where the risk exists.

Instead of construction risk or lease-up risk, you’re placing a lot of trust in the acquisition team, property manager, tenant screening process, and local market dynamics. If any one of those pieces underperforms, the investor can still experience significant challenges despite buying a property that was marketed as turnkey.

I also think there’s an important distinction between being local and having control. Some investors successfully own properties hundreds or thousands of miles away, but they usually have strong systems, trusted property managers, and clear performance expectations. Others prefer local investing because it naturally provides more oversight and faster decision-making.

One lesson I took from your experience is the importance of evaluating the property management company with the same level of scrutiny as the property itself. A great property in a good market can still struggle if tenant screening, rent collection, and enforcement processes aren’t executed consistently.

The fact that both properties experienced similar tenant issues suggests there may be broader lessons around screening criteria, collections processes, or market-specific tenant dynamics that are worth understanding before writing off out-of-state investing entirely.

Either way, sharing both the successes and challenges helps set more realistic expectations for investors who may believe turnkey investing is completely passive.
[email protected]
1 Reply
Samantha Andrews
OP
Member since 2026 · 35 posts · 45 votes
2mo
I think it's worth sharing that I reached out awhile back regarding a second Rent-To-Retirement property in a different market. This time, I approached the process more deliberately and requested to speak directly with both the property manager and the builder rather than relying on packaged materials alone.

During the review, I noticed that the rent assumptions in the pro forma appeared elevated compared to comparable rentals in the surrounding area. That discrepancy prompted a deeper line of questioning. I asked the property manager what similar units were actually achieving in rent and how consistently they were being leased.

She explained that the property itself—a model home with many near-identical units in close proximity—was not currently rented. She also noted that during the winter season, they had reduced rents on the same model by $500/month in order to secure tenants. In my own projections, this turned the property from a cash flow positive investment to a cash flow negative investment.

This detail raised concerns about the reliability of the pro forma and the underlying assumptions driving the returns. It ultimately marked the point where I became significantly more cautious about out-of-state turnkey rental offerings, particularly where projected rents appeared disconnected from actual achieved market performance.

As always, this is just my experience. I understand others have had positive outcomes with out-of-state turnkey rentals, and it may be helpful for more people to share what has worked well for them. I would also be interested in hearing specifically from other Rent-to-Retirement investors who have held their properties for at least a year and have had positive experiences, as I know there are many investors in that position.
0 Reply
Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
2mo
Quote from @Samantha Andrews:

We purchased out-of-state rental properties through Rent to Retirement last year and I wanted to share a straightforward reflection on the experience so far.

From a process standpoint, the acquisition side was smooth. The team was responsive, and the property selection and closing process were organized. It did feel fairly turnkey from purchase through onboarding.

As part of the purchase, the properties also came with one year of property management included. However, the post-purchase experience ended up being more challenging than expected. Both units in the duplexes consistently had late rent issues, and ultimately both properties experienced tenant problems that led to evictions within the first year of ownership. While tenant issues and evictions are part of rental property ownership in general, the combination of ongoing late payments and eventual evictions had a meaningful impact on cash flow and performance.

The bigger takeaway for us has not been about any one company specifically, but about strategy. We underestimated the importance of being local and hands-on. Even with a “turnkey” model that included built-in property management, we learned that strong day-to-day oversight, tighter screening control, and the ability to respond quickly are critical factors in outcomes.

Our conclusion from this experience is simple: going forward, we will focus on properties we can manage ourselves locally. That level of control and proximity is something we now see as essential to how we invest.

Every investor’s situation is different, and this reflects our personal experience.
Thanks for the post review.
1 Reply
Samantha Andrews
OP
Member since 2026 · 35 posts · 45 votes
2mo
I wanted to provide one final update regarding the property management issue discussed in this post.

Both my partner and I received written notice from the property management company that they will no longer be managing our properties effective August 15 due to a decision to downsize their client base.

As a result, we will not receive the full first year of property management that was represented as part of the purchase agreement with Rent to Retirement. The included property management period was an important part of the overall investment package and was one of the factors considered when evaluating the purchase.

While we understand that businesses may make operational decisions and circumstances can change, the outcome is that the agreed-upon property management support will end before the promised one-year period is complete.

I will continue to provide updates as we transition to a new property management arrangement and navigate the next steps with these properties.
1 Reply
- Drew SygitBusiness Member
  Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 8k+ votes
  2mo
  Quote from @Samantha Andrews:
  
  I wanted to provide one final update regarding the property management issue discussed in this post.
  
  Both my partner and I received written notice from the property management company that they will no longer be managing our properties effective August 15 due to a decision to downsize their client base.
  
  As a result, we will not receive the full first year of property management that was represented as part of the purchase agreement with Rent to Retirement. The included property management period was an important part of the overall investment package and was one of the factors considered when evaluating the purchase.
  
  While we understand that businesses may make operational decisions and circumstances can change, the outcome is that the agreed-upon property management support will end before the promised one-year period is complete.
  
  I will continue to provide updates as we transition to a new property management arrangement and navigate the next steps with these properties.
  
  This is just the PMC's way of getting rid of a client who's "called them out".
  They are showing their "true colors" by avoiding the issue, rather than admitting a mistake and working out a solution.
  Lack of integrity:(
  [email protected]248-209-6824
  Logical Property Management4.9450 Reviews
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  1 Reply
Jules Aton
MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
2mo
Ugh but at least you can either sell or vet a solid new PM to assist. I have to wonder if they encourage new clients to join here and post about how amazing the experience has been immediately after closing and before real life comes into play. Seems to be a trend.
1 Reply
Ed O.
Investor · Statewide, MO · Member since 2011 · 813 posts · 424 votes
2mo
Sorry to hear about your bad experience.
Another example of another well known turn key operator, whose pro formas did not happen. It sucks and is not surprising that the included low quality 1 year property management did not even fulfill their year.
It is mind blowing how these operators will fill any home (they don't own) with any warm body that can fog a mirror. They get paid a commission at move in, the turn key seller makes a fat chunk of money and then when people get thrown out or don't pay, they make even more money.
There's few good turn key operators out there, I can think of one in Indy and one in Memphis - and all the rest have countless stories like this here.
1 Reply
Samantha Andrews
OP
Member since 2026 · 35 posts · 45 votes
2mo
I wanted to provide one final follow-up to close the loop on this experience.

After learning that the property management company would be ending its relationship with us before the promised one-year management period was complete, I reached out to Rent to Retirement a second time to share what had happened.

They called me directly to discuss the situation and expressed genuine concern about our experience. Initially, they offered to work with both the builder and the property management company to try to make things right. However, during the conversation, they explained that they had actually ended their relationship with both the builder and the property management company shortly after we purchased our properties last year. As a result, they were no longer in a position to intervene directly.

Instead, they offered us a discount on any future purchases through Rent to Retirement as a goodwill gesture.

I think it's important to acknowledge that they did make an effort to address our concerns, even though the available options were limited by the fact that they no longer had a relationship with the companies involved. While we most likely will not be purchasing additional out-of-state turnkey rentals through Rent to Retirement—or any other turnkey provider—I believe it's only fair to recognize that they attempted to respond constructively after hearing about our experience.
1 Reply
- Jules Aton
  MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
  2mo
  Quote from @Samantha Andrews:
  
  I wanted to provide one final follow-up to close the loop on this experience.
  
  After learning that the property management company would be ending its relationship with us before the promised one-year management period was complete, I reached out to Rent to Retirement a second time to share what had happened.
  
  They called me directly to discuss the situation and expressed genuine concern about our experience. Initially, they offered to work with both the builder and the property management company to try to make things right. However, during the conversation, they explained that they had actually ended their relationship with both the builder and the property management company shortly after we purchased our properties last year. As a result, they were no longer in a position to intervene directly.
  
  Instead, they offered us a discount on any future purchases through Rent to Retirement as a goodwill gesture.
  
  I think it's important to acknowledge that they did make an effort to address our concerns, even though the available options were limited by the fact that they no longer had a relationship with the companies involved. While we most likely will not be purchasing additional out-of-state turnkey rentals through Rent to Retirement—or any other turnkey provider—I believe it's only fair to recognize that they attempted to respond constructively after hearing about our experience.
  Well they responded but it doesn't sound constructive. They offered you no help but to spend more money with them? I find it hard to believe there are no other vendors able to step in and assist with their product.
  0 Reply
Samantha Andrews
OP
Member since 2026 · 35 posts · 45 votes
2mo
Summary of Our Experience

For anyone who comes across this discussion in the future, here is a concise summary of our experience.

We purchased two newly constructed duplexes (four doors total) through Rent to Retirement. Within the first 12 months of ownership, two of the four units resulted in evictions after ongoing rent payment issues.

During the process, the property management company acknowledged that one of the tenants had been placed into one of our units while actively fleeing an eviction. They explained that this occurred due to an internal oversight during their screening process.

Then, before the promised first year of complimentary property management was complete, both my partner and I received notice that the property management company would no longer be managing our properties because they were downsizing their client portfolio. As a result, the included one-year property management period ended early, requiring us to transition to a new management company before the agreed-upon term had concluded.

Rent to Retirement did contact us after we shared our experience. They expressed concern, attempted to determine whether they could help resolve the situation, and ultimately explained that they had already ended their relationship with both the builder and the property management company shortly after our purchase. While they were unable to directly resolve the issues, they did offer us a discount on a future purchase as a goodwill gesture.

Our biggest takeaway is not that every turnkey investment will have this outcome. Rather, it is that investors should independently evaluate the builder, the property management company, and the financial assumptions behind any investment instead of relying solely on the reputation of the company facilitating the transaction. Once the purchase is complete, if the investment begins to underperform due to issues with the builder, property manager, or tenant placement, unwinding those problems can be expensive, time-consuming, and difficult.

This reflects our personal experience and should be considered alongside both the positive and negative experiences of other investors.
1 Reply
Samantha Andrews
OP
Member since 2026 · 35 posts · 45 votes
2mo
I suspected that was likely the case. At this point, however, it doesn't change the outcome. The management relationship is ending, and our focus is on ensuring a smooth transition and positioning these properties for better long-term performance.

The positive takeaway is that this experience has been an invaluable learning opportunity. It has given me a much deeper understanding of property management, tenant screening, and the importance of operational oversight. While I certainly would have preferred a different outcome, I am a significantly better and more informed real estate investor because of the lessons we've learned.
1 Reply
Samantha Andrews
OP
Member since 2026 · 35 posts · 45 votes
2mo
I wanted to provide another update as we continue working through the transition with these properties.

We interviewed three different property management firms. Interestingly, the company we felt most comfortable with took the time to visit the property in person, drive through the neighborhood, and evaluate the area before deciding whether they would work with us. After doing so, they called us back and explained that they would not be able to take us on as clients because they could not confidently guarantee the quality of tenants they would be able to place in that neighborhood.

Their feedback was that we are dealing with both a property management issue and a location issue. While management quality and tenant screening clearly played a role in our experience, the underlying challenge, in their opinion, is that the neighborhood itself presents additional risk factors that make successful long-term management difficult.

The frustrating part is that this property was represented as a Class A investment in the Rent to Retirement pro forma. Looking back, one of the biggest lessons from this experience is the importance of independently verifying every assumption—not just relying on an investment package, projected returns, or someone else’s classification of a property or neighborhood.

In hindsight, we should have personally traveled to the market and visited the properties before purchasing. Ultimately, we made a mistake, and it is one we will not make again. The biggest lesson learned is simple: trust, but verify. Before purchasing an out-of-state investment, we should have physically visited the properties, walked the neighborhood, and evaluated the market ourselves—even if that meant spending money on flights, hotels, and taking the time to be there in person. The cost of doing that due diligence would have been insignificant compared to the cost of learning this lesson after the purchase.
0 Reply
Victor PatelBusiness Member
Real Estate Broker · Cincinnati, OH · Member since 2022 · 133 posts · 85 votes
1mo
Thanks for sharing your experience. I think one of the biggest misconceptions about "turnkey" investing is that it means "hands-off" investing. Unfortunately, no investment property is truly passive.

Even the best property managers can't eliminate tenant risk. Late payments, job loss, life events, and evictions happen in every market. The key is having strong screening, proactive management, and an owner who stays engaged.

That said, I don't think investing out of state is inherently a bad strategy. Many investors have built excellent portfolios remotely by partnering with exceptional local teams. The challenge is finding and continually evaluating those teams, because property management quality can vary significantly.

Your experience is a good reminder that investors should perform just as much due diligence on the property manager as they do on the property itself. A great property in the hands of poor management can quickly become a disappointing investment.
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