The biggest mistakes new property managers make often come from lack of preparation, rushed decisions, and underestimating the complexity of property management. Whether yThe biggest mistakes new property managers make often come from lack of preparation, rushed decisions, and underestimating the complexity of property management. Whether you’re transitioning from self-managing a rental or stepping into the professional world, the role comes with challenges—legal requirements, finances, tenant relations, and maintenance.
Let’s face it, mistakes are inevitable when you’re new. However, some missteps can be costly and lead to legal issues, financial loss, or damaged relationships with tenants. The good news? By knowing the biggest mistakes new property managers make and understanding how to avoid them, you can set yourself up for long-term success.
Failing to Properly Screen Tenants
Tenant screening is one of the most critical responsibilities of a property manager. Skipping or rushing this step can result in unreliable renters who pay late, damage property, or disturb neighbors.
👉 Related: Tenant Screening Strategies for Reliable Renters
Why This Mistake Happens
New managers often rush to fill vacancies because:
- Owners pressure them to reduce vacancy losses
- They lack proper screening tools
- They miss red flags like employment gaps or weak references
How to Fix It
- Verify income at least 2.5–3× rent
- Call two previous landlords
- Run credit, background, and eviction checks
- Use property management software for automation and compliance
Top Screening Tools: SmartMove, RentPrep, TurboTenant, Avail.
Not Having Clear Lease Agreements
A vague lease is a recipe for disputes. The lease should clearly outline rent, maintenance responsibilities, guest rules, and consequences for violations.
👉 Related: Can a Tenant Break a Lease Before It Starts?
Why It Happens
- Relying on generic templates
- Missing key clauses like subletting or pet policies
- Not reviewing the lease with tenants
How to Avoid It
- Work with an attorney or use updated state-specific leases
- Include essential terms: rent, deposits, maintenance, pets, subletting
- Review with tenants before signing
Digital Lease Tools: Rocket Lawyer, LegalZoom, DoorLoop.
Neglecting Maintenance Requests
Delaying repairs frustrates tenants and lowers property value. Preventive maintenance and timely responses are crucial.
Prevention Tips
- Use a tracking system for requests
- Schedule annual inspections (HVAC, plumbing)
- Build a contractor network
- Educate tenants to report issues quickly
Best Maintenance Tools: Buildium, AppFolio, TenantCloud.
Poor Communication With Tenants and Owners
Without clear communication, relationships quickly deteriorate.
Causes
- No communication system in place
- Ignored tenant requests
- Inconsistent owner updates
Solutions
- Use portals for payments and updates
- Respond within 24 hours
- Send monthly owner reports
- Offer multiple contact channels
Top Tools: Rentec Direct, Yardi Breeze, AppFolio.
Failing to Keep Proper Records
Disorganized records lead to legal and financial issues.
Fix It With
- Digital storage for leases and receipts
- Cloud-based backups
- Documenting tenant interactions
- Move-in/move-out photos
Best Record-Keeping Tools: Buildium, TenantCloud, Yardi Breeze.
Not Leveraging Technology
Many new managers still use outdated manual processes, which wastes time.
Smart Solutions
- Automate rent collection
- Use smart locks, thermostats, and security systems
- Adopt digital marketing tools for listings and tours
- Track performance with analytics
Top Tech: AppFolio, Buildium, DoorLoop, Matterport.
Ignoring Marketing & Tenant Acquisition
Relying on old methods like yard signs leads to vacancies.
Fix It With
- SEO-optimized listings with photos and details
- Social media ads and virtual tours
- Encouraging tenant referrals and reviews
Platforms: Zillow Rental Manager, Apartments.com, Facebook Marketplace, Matterport.
Not Staying Updated on Laws & Trends
Rental laws, taxes, and market conditions change constantly.
Stay Informed By
- Joining associations like NARPM or IREM
- Attending legal seminars
- Subscribing to real estate law blogs
- Consulting attorneys when needed
👉 Related: What a Landlord Cannot Do in California
Overlooking Tenant Retention
It’s cheaper to keep good tenants than to find new ones.
Retention Strategies
- Fast maintenance responses
- Renewal perks (discounts, free cleaning)
- Regular communication
- Community-building efforts
Benefits: Stable income, reduced turnover costs, stronger reputation.
Micromanaging Instead of Delegating
Trying to do everything leads to burnout.
When to Delegate
- Managing more than 20 properties
- Overwhelmed by admin and repairs
What to Delegate
- Maintenance → vendors
- Bookkeeping → accountant/software
- Tenant screening → property management software
- Marketing → VA or agency
Delegation frees you to focus on growth.
Measuring Success as a Property Manager
Track these KPIs:
- Occupancy rate (95%+)
- Tenant satisfaction scores
- Maintenance response time (<24 hours)
- Revenue growth
Final Thoughts: Succeeding as a New Property Manager
The biggest mistakes new property managers make can be avoided with preparation, technology, and ongoing education. By screening tenants carefully, drafting strong leases, responding to maintenance promptly, and communicating effectively, you’ll reduce risk and build stronger relationships.
Continuous learning and adopting the right tools will keep you ahead of legal changes and market shifts. Focus on tenant retention, smart delegation, and strategic planning to build a scalable, successful property management business.
Ready to avoid these mistakes and grow your business? Learn more about our property management services or explore our franchise opportunities today.
