Top property management mistakes that cost owners big time

[Corey Goldstein]

Look, managing property isn’t rocket science, but it is a business. And like any business, if you ignore the fundamentals, you’ll get burned. I’ve seen smart owners lose tens of thousands because of poor management decisions, or worse, blind trust in third-party operators who don’t know (or care) how to protect the asset.

Here are the biggest property management blunders I see eating owners alive:

1. Lack of Oversight

Trust is great. But blind trust? That’s a liability. If you’re not reviewing reports, walking your property, or holding your manager accountable, you might as well throw money out the window.

2. Bad Tenants In, Good Tenants Out

Sloppy screening leads to evictions. And when your good tenants don’t get responses, don’t feel safe, or see maintenance being ignored? They’re gone. Vacancy costs you way more than a phone call.

3. Deferred Maintenance

If you’re putting off repairs to “save money,” you’re not saving—you’re bleeding. Small issues become capital expenses fast. Preventive maintenance is your cheapest insurance.

4. Zero Systems or Processes

Your property can’t run on vibes. If rent collection, lease renewals, move-outs, and maintenance requests don’t run like clockwork, you’ve got a management problem, not a tenant problem.

5. Poor Communication

Whether it’s ghosting tenants or not responding to ownership questions, silence kills trust. A tenant who feels ignored becomes a problem. An owner who feels ignored finds a new manager.

6. No Financial Clarity

If you don't know your NOI, occupancy rate, or when leases are expiring, you're not investing, you're gambling. Every dollar in or out needs to be tracked, reported, and understood.

7. High Staff Turnover

New faces every month? That's a red flag. Consistency builds community. High turnover kills it, and it usually means poor leadership or a toxic culture behind the scenes.

8. Legal & Compliance Lapses

You don’t need to be a lawyer, but your team better know landlord-tenant law cold. One wrong move, illegal notice, ADA slip-up, mishandled security deposit, and you're writing a fat check.

9. Letting Reputation Slide

In this review-driven world, your online presence matters. One-star Google and Yelp reviews from frustrated tenants will kill your leasing velocity, and your NOI, faster than you think.

10. Misaligned Incentives

If your management team's goals don't align with yours as the owner (e.g. maximizing NOI, reducing turnover, protecting the asset), you're not partners, you're adversaries.

Bottom line? If you own real estate, your property is a business. You need operators who understand that.

[Drew Sygit]

All this should be taken in the context of the Class of the Neighborhood/Property/Tenant Pool/Contractors/Etc.

They should all match up within ONE Class of each other - or bad things happen.

The challenge is getting owners to understand this.

Too many buy Class C properties, expecting Class A results!

Too many PMC's send Class A contractors, with their high prices, to work on Class C properties.

Too many PMCs use Class A screening processes on Class B, C & D tenants - setting everyone up for evictions. 

I could go on & on & ...