Episode #418
Find an investor-friendly property manager today: https://www.biggerpockets.com/business/finder/property-managers?utm_source=podcast&utm_medium=mention&utm_campaign=pmfinder
If you get your property management wrong, you could lose tens of thousands of dollars. A sketchy property manager could take all your rent and run, leaving you with the bills and no hope of recovering your long-lost rent checks. That’s precisely what happened to today’s guest, a seasoned real estate investor who’s even looked up to as an expert in the industry. Even he made a sizable property management mistake, and in this episode, we’re trying to help you avoid the same fate.
The BiggerPockets Podcast Network is bringing you a crossover episode with the “Real Estate Rookie” podcast’s Ashley Kehr and the “BiggerPockets Money” podcast’s Scott Trench. Scott is not only the host of BiggerPockets Money but also the CEO of BiggerPockets. And today, he’s sharing every painful detail about how he lost over $40,000 by hiring a bad property manager. This IS an avoidable mistake, but some easily overlooked red flags could put you in the same position as Scott unless you’re very careful.
Scott shares the entire story and gives the top red flags to look out for. He’ll explain why he DOESN’T give his whole portfolio to one property manager, why you MUST set communication standards from the start, the questions EVERY investor should ask before hiring a property manager, and the fees you should refuse to pay the next time you outsource your property management. Need a property manager? We’ll share the best tool ANYONE can use to find a property manager TODAY!
Find an investor-friendly property manager today: https://www.biggerpockets.com/business/finder/property-managers?utm_source=podcast&utm_medium=mention&utm_campaign=pmfinder
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Join BiggerPockets for FREE 👇
https://www.biggerpockets.com/signup?utm_source=owned_media
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Join the Real Estate Rookie Facebook Group:
https://www.facebook.com/groups/realestaterookie
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Find an Investor-Friendly Agent in Your Area:
http://biggerpockets.com/agentmatch
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Find Investor-Friendly Lenders:
http://biggerpockets.com/findlenders
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Property Manager Finder:
https://biggerpockets.com/findapm
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Want to Self-Manage Your Rentals Instead? Grab the New Book, “Self-Managing Landlord”:
https://store.biggerpockets.com/products/self-managing-landlord?utm_source=youtube&utm_medium=description&utm_campaign=none
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Ask Other Investors Your Property Management Questions on the BiggerPockets Forums:
https://www.biggerpockets.com/forums?utm_source=owned_media
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Past Episodes Mentioned in Today’s Show:
Real Estate Rookie 59 – Rookie First-Time Home Buyer Questions Answered by Scott and Mindy:
https://www.biggerpockets.com/blog/rookie-podcast-59-scott-and-mindy?utm_source=youtube&utm_medium=description&utm_campaign=none
Real Estate Rookie 200 – Scott Trench’s 10-Step Checklist to Buy Your First Rental Property: https://www.biggerpockets.com/blog/rookie-200?utm_source=youtube&utm_medium=description&utm_campaign=none
Real Estate Rookie 401 – Boost Your Cash Flow in 2024 with These “Self-Management” Tips:
https://www.biggerpockets.com/blog/rookie-401?utm_source=youtube&utm_medium=description&utm_campaign=none
BiggerPockets 513 – The “Red Flags” of Investment Fraud from a Former $3.8M Ponzi Scheme Manager:
https://www.biggerpockets.com/blog/money-513?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Ashley and Scott on BiggerPockets:
Ashley: https://www.biggerpockets.com/users/echopm?utm_source=youtube&utm_medium=description&utm_campaign=none
Scott: https://www.biggerpockets.com/users/scotttrench?utm_source=youtube&utm_medium=description&utm_campaign=none
Show notes at: https://link.chtbl.com/Rookie
00:00 Intro
01:31 Hiring the Property Manager
03:48 Things Start Going Wrong
06:23 Losing $40K!
09:43 Property Manager Red Flags
15:50 Questions You MUST Ask
23:45 Negotiating Fees
30:16 Asset Type Matters!
35:05 Communication Expectations
37:40 Vetting for Legitimacy
43:27 Find a GREAT Property Manager
