5 Costly Mistakes Property Managers Make That Are Tanking Your ROI

Let’s be real, property management can make or break your real estate investment. And too often, I see managers running properties like it’s 1999, throwing away your returns like they’ve got money to burn. Here are the top five mistakes I see (and if your PM is guilty of these, it’s time for a serious talk).

1. “Set It and Forget It” Rent Pricing

Your property manager should be adjusting rent like a surgeon, precise, calculated, and always maximizing cash flow. But most? They slap a number on it, call it good, and leave thousands on the table. You wouldn’t let a stockbroker ignore market trends, so why let your PM?

2. Hiring the Cheapest Maintenance “Guy”

Oh, your PM’s cousin’s neighbor’s handyman is fixing your plumbing for cheap? Great, until it leaks again, floods the unit, and now you’re paying triple. Proper maintenance is an investment, not an expense. Stop cheaping out and start hiring pros who do it right the first time.

3. Ignoring Preventative Maintenance

A good property manager doesn’t just react to problems, they prevent them. That leaky roof? It’s been “patched” three times, and now it needs a full replacement. That A/C? Dead in the middle of summer because nobody changed the filters. This is how you hemorrhage profits.

4. Letting Bad Tenants Slide

Late payments, pet “surprises,” mystery roommates, bad tenants don’t become good ones. But some property managers are too lazy (or scared) to enforce lease terms. This isn’t daycare. Set standards, enforce them, and protect your investment.

5. Failing to Optimize for Market Conditions

If your PM isn’t testing short-term rental demand, adjusting lease terms for seasonality, or offering incentives to get the best tenants, you’re losing money. Every property needs a strategy. No strategy? No maxed-out ROI.

If your property manager is making these mistakes, they’re costing you serious money. And if you want your ROI to grow, not shrink, it’s time to work with people who know how to play the game right. Let’s talk.