What have been the biggest challenges for you when working with a PM company?
Investor · Member since 2022 · 16 posts · 6 votes
What have been the biggest challenges for you when working with a PM company?
Most Popular Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votesYeah, we're also a PMC that takes over properties from our bad competitors regularly.
#1 issue is a lack of even knowing what to look for, so you don't even know how to properly screen PMCs!
Copy & paste advice below:
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 (), 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!
Logical Property Management4.9459 Reviews
23 Replies
- 3wKyle MccawBusiness MemberProperty Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
@Adva Asayas From the PM side (and as an owner), the biggest problems I see usually come down to communication and lack of systems. Before hiring anyone, ask how they handle tenant screening, maintenance approvals, lease renewals, accounting, inspections, and owner communication—not just what percentage they charge.
For an owner with multiple properties or rentals out of state, a good PM should give you documented processes and good reporting so you can manage the investment without having to manage the manager. They should also have enough scale and specialization that leasing, maintenance, accounting, and collections aren't all being handled by the same overwhelmed person.
The right PM isn't an expense as much as a risk-management decision. The wrong tenant, slow leasing, poor maintenance decisions, or one mishandled legal issue can cost considerably more than the management fee.
McCaw Property Management4.4907 Reviews- Investor · Member since 2022 · 16 posts · 6 votes2w
@Kyle Mccaw Thanks, this is really helpful. When you say “good reporting,” what should I actually be looking for in the monthly reports? What are the main things you think I should be checking?
If leasing is moving too slowly or you feel a maintenance decision doesn’t make sense, how do you usually handle that as an owner? I’m trying to understand how much control I would actually have, and over which decisions. - 2wKyle MccawBusiness MemberProperty Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
@Adva Asayas Good questions. For monthly reporting, I’d want a clean owner statement showing rent collected, management fees, maintenance expenses, any outstanding balances, and enough detail that you can quickly understand the property's actual cash flow. I’d also want easy access to invoices, leases, inspection reports, and maintenance history—not just a single monthly number.
On leasing, I’d expect the PM to be able to show me the data: days on market, showing activity, applications, comparable rentals, and what they recommend changing. If a property isn't leasing, “the market is slow” isn't a sufficient answer.
As far as control, I think the PM agreement should spell that out clearly. For example, ours gives us authority to handle routine repairs up to $400 without owner approval, while larger non-emergency repairs require approval; emergencies are handled immediately to protect the property or tenant.
The goal isn't for you to approve every $150 repair—that defeats much of the purpose of hiring a PM. You want good systems, reasonable approval limits, transparency, and a PM who can explain the reasoning behind the bigger decisions. You should still own the investment decisions; the PM should handle the day-to-day execution.
McCaw Property Management4.4907 Reviews
- 3wLeo SteinBusiness MemberProperty Manager · Orange County, CA · Member since 2025 · 60 posts · 18 votes
For out-of-state and multi-property owners, the pain I hear most is opaque maintenance decisions and slow leasing feedback—not the fee percentage. What helps in practice is agreeing up front on approval thresholds, a weekly vacant-unit update with showings and reasons they didn't convert, and owner statements that reconcile to the bank deposit. In California especially, I'd also ask how they handle entry notice, habitability timelines, and deposit accounting, because those are where "we'll figure it out" gets expensive. A PM is worth it when you get documented process and clean reporting—not when you're managing the manager every week. Not legal advice, just ops pattern recognition from SoCal rentals.
Real Property Management Optimal 513 Reviews - Real Estate Agent · Memphis · Member since 2026 · 570 posts · 336 votes3w
From the PM side, the biggest challenges I see usually come down to expectations and communication.
• Frustration: Not knowing what’s happening with maintenance, vacancies, or an unexpected expense.
• What helps: Clear expectations upfront about approval limits, response times, reporting, and which decisions the PM can make without calling first.
• Systems: A good owner portal, consistent monthly reporting, documented work orders, and one clear point of contact.
• Why it’s worth it: You’re buying back the day-to-day management—tenant calls, maintenance coordination, rent collection, leasing, and follow-up—without losing visibility into the property.
The best relationships are usually the ones where the owner knows what to expect and the PM has enough authority to actually manage.
- Investor · Member since 2022 · 16 posts · 6 votes2w
@Jim Johnson Thanks Jim!
I’m trying to understand how much I can really rely on the PM’s portal and reports. What would I still need to keep checking myself outside of their system?
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes3wIt boils down to the company and whether they run it like a company. We are currently using five different property managers and four of them are excellent. They're responsive, they are transparent, and they communicate well with us and with the tenants. We don't always like some of the pricing they provide on repairs but outside of that, great relationships. I have one property manager who is a complete disaster. Trouble collecting rent, does not respond to tenant inquiries or maintenance requests, and does not look over the properties. At the end of the day do a very good job of vetting them and make sure to get references
7e investments53 Reviews- Investor · Member since 2022 · 16 posts · 6 votes2w
@Chris Seveney You mentioned repair pricing even with the PMs you otherwise really like. How do you decide whether a repair price is reasonable today? Do you ask for another quote, compare previous repairs, or mostly rely on the PM?
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes3w
You must ask how many units are they currently managing for Clients, and for how many years. If they don't have at least 50 units for 10 years under their belt, move on. If the company's primary business is sales, and the PM for your property would be part of the sales team, move on. You need a dedicated PM, not a part timer.
Ask about every process that is important to you. Screening. Late fee handling. Service call responses. Renewals and Annual Inspections. Do they use licensed and insured vendors, "handy" persons, or a mix of both? Or do they have in-house maintenance staff? Do they mark up repair costs? What do the monthly reports look like for property similar to yours, and do they provide all of the info you are seeking? Do they include paid invoice copies?
- Investor · Member since 2022 · 16 posts · 6 votes2w
@Richard F. Thanks Richard!
I’m trying to understand what still stays on my plate as the owner..so even with a good PM in place, what do you still need to check or stay on top of yourself so you’re not just blindly trusting everything?
- Real Estate Broker · Member since 2024 · 131 posts · 61 votes2w
@Adva Asayas Congrats on looking at this before the portfolio gets messy. The usual break points are maintenance response, lease renewals, and whether the PM actually owns the vendor relationships or just forwards tickets. For out of state or multi door owners the fee only pencils if those three are tighter than self managing. What is the biggest gap you are trying to close first, response time, accounting clarity, or not being the emergency contact?
- 2wDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Yeah, we're also a PMC that takes over properties from our bad competitors regularly.
#1 issue is a lack of even knowing what to look for, so you don't even know how to properly screen PMCs!
Copy & paste advice below:
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 (), 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!
Logical Property Management4.9459 Reviews - Investor · Charleston, SC · Member since 2018 · 198 posts · 84 votes2w
The challenge that actually stuck around after hiring a PM wasn't communication, it was verifying the numbers on the monthly statement actually matched what hit my bank account. Rent collected, the PM fee, repair invoices, and reserve movement all have to tie out, and the quiet mismatches, like a repair with no invoice or a fee that lands a month late, are the ones that slip by if you only glance at the final deposit. What's helped most is treating the statement as something to reconcile line by line every month instead of trusting the summary number.
- Investor · Member since 2022 · 16 posts · 6 votes2w
@Eduardo CavasottiThanks for sharing this - really valuable input. The reconciliation part is especially interesting.I hadn’t thought as much about that. How much time does this usually take you each month, and what are the most common mismatches you end up finding?
- Investor · Charleston, SC · Member since 2018 · 198 posts · 84 votes2w
Realistically it's 20 to 30 minutes a property once you have a rhythm going, longer the first time you set it up. Most of what I catch isn't fraud, it's normal drift: a repair invoice that never got attached, a reserve draw that posts as a lump sum instead of tied to a specific job, or a rent payment that lands in the bank a few days after the statement shows it collected. The ones that actually cost money are the mismatches nobody catches for three or four months, because by then nobody remembers what the charge was even for.
- 2wMark UpdegraffBusiness MemberReal Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 697 votes
I'm both an owner and a PM operator, so I pressure-test this a little differently.
My own properties go through the same systems as our client-owned properties. I don't want a special “owner of the company” lane because that can hide weak spots in the process.
The failure mode I worry about most is a management company optimizing for its own convenience while the owner quietly absorbs the cost through vacancy, slow collections or poor maintenance decisions.
Before hiring one, I'd ask how they handle the exceptions, not just the routine:
What happens when vacancy runs long? Rent stops coming in? A repair suddenly becomes a major expense? A renewal gets complicated?
Who owns the problem, what authority do they have, and when does the owner hear about it?
The PM is worth the money when you stop being the dispatcher without losing visibility or control of the investment.
Updegraff Group Realty4.746 Reviews- Investor · Member since 2022 · 16 posts · 6 votes2w
@Mark Updegraff Thanks Mark, this is really helpful.! what are the early signs that a PM is optimizing for their own convenience rather than for the property? And how do you personally catch those issues before they become expensive?
- Property Manager · Melbourne, FL · Member since 2019 · 288 posts · 129 votes2w
I’d ask to see a closed maintenance ticket, with the photos and invoice. A portal saying “completed” doesn’t tell you much. Especially when you live out of state and can’t go check the repair yourself.
- Coral Springs, FL · Member since 2018 · 486 posts · 106 votes2w
honestly the biggest thing for me has been just knowing what's actually going on with the property. i do tax deeds in florida and mostly self-manage, so i've seen both sides.
when i was interviewing PMs the ones that scared me were the ones who said "don't worry we handle everything." because that usually means you find out about the $2,000 repair after it's done, not before. i had one PM who kept approving repairs right up to the maintenance cap without ever calling me, and by the end of the year my cash flow was basically zero because of all the little fixes that added up.
the reconciliation thing people are mentioning is huge too. i spent months before i built my own little system just trusting the owner statement and then finding out months later that a deposit never hit. by then good luck proving anything.
these days i basically treat my PM like a contractor. i want a monthly call, photos of any repair over $300, and the raw invoices not just the summary line. the PMs who push back on that are usually the ones with something to hide. the good ones don't blink at it. - Miami Dade County · Member since 2026 · 5 posts · 2 votes2w
From the management side, one of the biggest issues I see is owners losing visibility once they hand the property over. A good PM should reduce the owner’s workload without turning the property into a black box.
I would want monthly reporting that clearly shows what was collected, what was spent, outstanding balances, maintenance expenses and invoices, plus a clear picture of leasing and vacancy activity. For a vacant unit, the owner should know how many inquiries and showings there were, what feedback is coming back, and whether price or property condition needs to change.
I also think maintenance approval limits should be agreed on upfront. The owner should know what the manager can approve without calling, when photos or additional quotes are required, and when an issue gets escalated.
The simplest test is this: can you understand what happened at your property this month without having to call your manager and ask? If not, the reporting and communication probably aren’t good enough.
- Accountant · Philippines · Member since 2026 · 6 posts · 3 votes2w
From the bookkeeping side, one thing I would recommend is making sure your property management company has a reliable system for tracking rent payments, outstanding balances, security deposits, and property expenses.
I currently handle bookkeeping and utility billing for an 84-unit rental portfolio, and I've seen how important accurate records and regular communication are, especially when managing multiple properties.
Before choosing a PM company, I would ask how frequently they provide financial reports, how they reconcile tenant payments, and how they handle discrepancies between bank deposits and tenant ledgers.
Having clear financial records makes a huge difference when you're managing properties remotely.
- Real Estate Broker · Cleveland, OH · Member since 2023 · 218 posts · 83 votes1d
There's a lot of pointers about the minutiae of property management, whether you have parameters in place for accountability and so on.
Now, having managed hundreds of units, both as an investor and as a property manager, the biggest challenge in property management is that your property manager and the investor need to operate on a similar model. You need to make sure your property manager is operating on the same level.
The motto is this: your property should be able to answer three questions.
Question number one: Is this property built to perform?
Investing is a performance business. If your property isn't built or upgraded to perform, it's useless. It's like grabbing a car from the junkyard and putting it on the racetrack and expecting it to win a race. It's not going to happen.
Question number two: Is this property optimized or upgraded to make property management easier?
It's not just the property manager that makes the property management experience easier. It's how good of an investment you have. The condition of the property.
If you have a property that's in very good shape, just about anybody can manage it. However, if your property hasn't been optimized to make property management easier, now it's super important that whoever is managing your property has that as a criteria.
Question number three: Will this property hold its value when it's time to sell?
Most people don't think about that until they're ready to sell the property.
Investors are generally a group of people who often operate from the mindset that we don't fix it until it's broken. If you're buying properties from this group, or you inherit one of these properties from folks who believe that way, and you don't do the first two things I mentioned, there's a good chance you're going to bring a property to market when it's time to sell, or when an emergency forces you to sell, and that property cannot be sold for a higher price than what you paid for it.
That's the biggest challenge with property management. It's not just about rent collection and repair coordination. It's making sure the property is set up for performance, and then finding a property manager who operates from the same philosophy.
For me, that's what makes a PM worth it. Once the property is built to perform, optimized to manage, and positioned to hold its value, a good property manager helps you protect all three.
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