536: My Property Manager Robbed and Ghosted Me ($40K Stolen!)

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!

In This Episode We Cover

Deadly property management red flags and signs you should run from a property manager

Why you never, EVER give your entire portfolio to a single property manager/property management company

Simple questions to ask that immediately show if a property manager is legit

Negotiating fees and why Scott is okay with paying a higher monthly rate

Communication expectations and what a property manager should be sending you EVERY month

The easiest way to find a great property manager wherever you invest

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums

Finance Review Guest Onboarding

Join BiggerPockets for FREE

Mindy on BiggerPockets

Scott on BiggePockets

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Find an Investor-Friendly Agent in Your Area

Find Investor-Friendly Lenders

Property Manager Finder

Want to Self-Manage Your Rentals Instead? Grab the New Book, “Self-Managing Landlord”

Ask Other Investors Your Property Management Questions on the BiggerPockets Forums

Past Episodes Mentioned in Today’s Show:

Real Estate Rookie 59 - Rookie First-Time Home Buyer Questions Answered by Scott and Mindy

Real Estate Rookie 200 - Scott Trench’s 10-Step Checklist to Buy Your First Rental Property

Real Estate Rookie 401 - Boost Your Cash Flow in 2024 with These “Self-Management” Tips

BiggerPockets 513 - The “Red Flags” of Investment Fraud from a Former $3.8M Ponzi Scheme Manager

Connect with Ashley on BiggerPockets

Connect with Scott on BiggerPockets

00:00 Intro

01:20 Hiring the Property Manager

03:37 Things Start Going Wrong

06:12 Losing $40K!

09:32 Property Manager Red Flags

15:39 Questions You MUST Ask

23:34 Negotiating Fees

30:05 Asset Type Matters!

34:54 Communication Expectations

37:29 Vetting for Legitimacy

43:16 Find a GREAT Property Manager

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-536

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