Biggest Mistakes New Property Managers Make

Introduction

Property management can be tough, especially when you’re just starting out. Whether you’re transitioning from managing a property on your own or stepping into the professional world, there’s a lot to juggle—legal issues, finances, dealing with tenants, and making sure everything runs smoothly.

Let’s face it, mistakes are bound to happen. But some mistakes can be a lot more costly than others. We’re talking about things that could lead to legal problems, losing money, or damaging relationships with tenants. But here’s the good news: By being aware of these common missteps and knowing how to avoid them, you can make your job a lot easier and set yourself up for long-term success.

In this guide, we’ll dive into some of the most common mistakes new property managers make and share some tips on how to steer clear of them.

Failing to Properly Screen Tenants

Tenant screening is one of the most important responsibilities of a property manager. Accepting tenants without a thorough screening process can result in unreliable renters who fail to pay rent on time, cause property damage, or create disturbances for neighbors.

Why This Mistake Happens

As a new property manager, it’s easy to get caught up in the rush to fill vacancies quickly. But when you’re in a hurry, it’s easy to overlook the importance of tenant reliability. This often happens because:

• Property owners pressure you to minimize vacancy losses.
• You might not have a solid process or tools for doing background checks yet.
• Warning signs, like a shaky employment history or a reluctance to provide references, can slip through the cracks.

Warning Signs That Require a Closer Look

Beyond standard credit and background checks, property managers should recognize potential red flags in tenant applications:

• Frequent job changes – May signal financial instability.
• Rental history gaps – Could indicate past evictions or disputes.
• Large cash payments – Might be an attempt to avoid verification.
• Reluctance to provide references – Suggests potential past issues.

How to Implement a Strong Tenant Screening Process

To protect your properties and maintain a stable rental income, follow a standardized screening approach:

• Income Verification – Tenants should earn 2.5–3× the rent.
• Rental History – Verify with two previous landlords.
• Credit & Background Check – Assess financial responsibility.
• Criminal Record Review – Check for risks where legal.
• Automation & Compliance – Use software to stay efficient and fair.

Best Online Tenant Screening Services

There are some great tools out there that can simplify your screening process:

• MyRental (CoreLogic) – Credit reports, eviction history, rental recommendations.
• SmartMove (TransUnion) – Credit scores, criminal checks, ResidentScore.
• RentPrep – FCRA-certified background checks with manual review.
• TurboTenant – Free platform with credit, eviction, and criminal reports.
• Avail – Full screening reports, including credit, background, and rental history.

Not Having Clear Lease Agreements

A lease agreement is basically the rulebook for the tenancy—it lays out the expectations and responsibilities for both you and your tenants. If it’s vague or poorly written, you’re setting yourself up for potential disputes, legal headaches, and even financial losses.

Why Lease Agreements Matter

A lease is a binding contract that protects both landlords and tenants. It should clearly define:

• Rent due dates and late fees
• Maintenance responsibilities (who handles minor repairs?)
• Guest policies and subletting rules
• Consequences of lease violations

Why This Mistake Happens

• Relying on generic lease templates without customizing them for local laws
• Failing to include specific clauses for property rules, maintenance responsibilities, and penalties for lease violations
• Not reviewing the lease with tenants before they sign

Risks of Weak Lease Terms

• Subletting Issues – Without a clear ban, tenants may rent to others, leading to unknown occupants.
• Unclear Pet Policy – Missing pet rules can result in property damage without recourse.
• Eviction Challenges – Vague violation terms make tenant removal difficult.

Pro Tip: Always include a clause requiring tenants to notify the property manager in writing before making any modifications, such as painting walls or installing fixtures.

How to Avoid This Mistake

• Work with a real estate attorney to draft a lease agreement that aligns with state and local rental laws. Realtors have access to the most recent versions of leases and addendums, tested by their team of attorneys, which protect the landlord and tenant equally.
• Include essential clauses, such as:
• Rent payment terms and late fees 
• Security deposit conditions
• Maintenance and repair responsibilities
• Subletting rules
• Pet policies and penalties for property damage
• Go over the lease with tenants to ensure they understand their obligations before signing.

Best Digital Tools for Lease Agreements

If you want to streamline the process, check out these tools to create and manage lease agreements more efficiently(however all of these cost money):

• Rocket Lawyer – Customizable, state-specific leases with e-signing.
• LawDepot – Ready-to-use agreements tailored by location.
• LegalZoom – Professional leases with legal guidance.
• eForms – Free and paid templates for various states.
• DoorLoop – Property management software with e-signing.

Neglecting Maintenance and Letting Requests Pile Up

Keeping up with maintenance is crucial for happy tenants and maintaining the value of your property. Delaying repair requests or fixing things can lead to major issues like property damage, unhappy tenants, and even legal trouble.

Why This Happens

• Delaying urgent repairs (e.g., leaks, HVAC issues).
• New managers underestimate the importance of preventive maintenance
• Lack of an organized system for tracking maintenance requests
• Budget constraints leading to deferred repairs

Preventing Maintenance Mistakes

• Use a tracking system – Ensure timely repairs.
• Prioritize prevention – Schedule annual HVAC checks, plumbing inspections.
• Build a contractor network – Enable quick responses.
• Schedule regular upkeep, such as quarterly pest control and drain jetting(apts).
• Educate tenants – Encourage prompt issue reporting.

Best Property Management Software for Maintenance Tracking

• Buildium – Online requests, work order tracking, vendor management.
• AppFolio – Automated requests, real-time tracking, vendor integration.
• TenantCloud – Task assignment, progress tracking, expense logging.
• Propertyware – Vendor management and automated work orders for single-family rentals.
• DoorLoop – Tenant portals, maintenance tracking, accounting integration.

Poor Communication With Tenants and Owners 

When communication is lacking, things can quickly go downhill. Whether it’s tenants feeling left out of the loop or owners frustrated with no updates, poor communication can lead to misunderstandings, dissatisfaction, and even negative reviews. And when tenants feel like they’re not being heard, it often leads to higher turnover.

Why This Mistake Happens
Why do these communication breakdowns happen? Here are a few reasons:

• No clear expectations from the start – If communication isn’t clearly set up early on, things can get messy.
• Lack of engagement – If tenants feel ignored or aren’t getting regular updates, they start to feel disconnected.
• Missed messages – Relying on outdated methods can result in messages slipping through the cracks.
• Infrequent or unclear updates – When updates aren’t consistent or clear, confusion and frustration can build.

Preventing Communication Issues

• Use tenant portals – Streamline payments, requests, and lease updates.
• Set response time policies – Ensure replies within 24 hours.
• Send monthly owner updates – Cover financials, vacancies, and maintenance.
• Offer multiple channels – Use email, text, phone, and online portals.
• Implement proactive outreach – Schedule tenant check-ins and owner reports.

Tenant and Owner Portals for Centralized Communication

These portals allow tenants and property owners to access important information, make requests, and receive updates in real-time. Utilizing these platforms can improve efficiency and reduce miscommunication.

• Rentec Direct – Tracks payments, handles maintenance requests, and streamlines messaging.
• Hemlane – Centralized hub with automated email notifications.
• Yardi Breeze – Cloud-based portal for documents, financials, and real-time updates.
• Buildium – Mobile-friendly portal with automated messaging and maintenance tracking.
• AppFolio – Intuitive dashboard for communication, document management, and payments.

Failing to Keep Proper Records and Documents

Keeping your records organized isn’t just about tidying up your desk—it’s crucial for running your property management business smoothly. If you’re not keeping track of everything, you might run into some big problems down the road. Disorganized records can lead to:

• Financial management – Tracks income and expenses accurately.
• Legal protection – Supports lease enforcement and dispute resolution.
• Operational efficiency – Maintains professionalism and compliance.

Why This Mistake Happens

• Disorganized storage – Paper records or scattered spreadsheets make access difficult.
• Undocumented tenant communications – Missing rent, maintenance, or violation records create legal risks.
• Financial mismanagement – Lost transactions lead to incorrect accounting and missed tax deductions.
• Lack of maintenance tracking – Unresolved issues increase liability concerns.

How to Avoid This Mistake

• Go digital – Store leases, finances, and maintenance logs securely.
• Use property management software – Track payments, deposits, and expenses in one system.
• Document tenant interactions – Keep records of complaints, repairs, and agreements.
• Take move-in/out photos – Prevent disputes over property condition.
• Back up files regularly – Use cloud storage or external drives to avoid data loss.

Digital Tools for Property Management

• Buildium – Ideal for mid-sized portfolios, with accounting, lease tracking, and maintenance management.
• AppFolio – AI-driven automation for large-scale property management.
• TenantCloud – Great for independent landlords, with rent collection and lease storage.
• Yardi Breeze – Cloud-based platform for financial reporting and document management.
• DoorLoop – User-friendly software for lease tracking and digital record-keeping.

Leveraging these tools ensures compliance, reduces errors, and improves efficiency.

Not Leveraging Technology for Efficiency

In today’s fast-paced property management landscape, embracing technology isn’t just a nice-to-have—it’s essential for success. Yet, many property managers still rely on outdated manual processes that slow them down and miss out on opportunities to improve both efficiency and tenant satisfaction.

Why This Mistake Happens

• Old-School Processes: Many property managers still rely on manual systems, leading to mistakes, delays, and extra work.
• Missed Smart Tech Opportunities: Not utilizing smart home technology like keyless entry and smart thermostats means missing out on ways to boost tenant satisfaction and cut costs.
• Lack of Automation: Without automation, repetitive tasks like reminders and inquiries can take up valuable time.
• Not Using Digital Marketing: Failing to leverage online tools can lead to longer vacancy times and missed chances to attract quality tenants.

How to Fix It

• Automate rent collection and lease processing using property management software to ensure timely payments and reduce administrative workload.
• Implement smart home technology such as keyless entry, smart thermostats, and security systems to enhance tenant experience and reduce maintenance costs.
• Use AI-driven chatbots and automated responses to improve tenant communication and handle common inquiries efficiently.
• Adopt digital marketing tools for listing optimization, SEO, and virtual tours to attract quality tenants faster.
• Leverage data analytics to monitor tenant behavior, market trends, and property performance for better decision-making.

Technology Solutions for Property Managers

Integrating the right tools can enhance efficiency, streamline operations, and provide a seamless experience for tenants and owners.

• AppFolio: Automates rent collection, lease management, and accounting.
• Buildium: Simplifies communication and document storage.
• TenantCloud: Ideal for small landlords, offering online payments and maintenance tracking.
• Keyless Entry: August Smart Locks, Schlage Encode.
• Smart Thermostats: Nest, Ecobee.
• Security Systems: Ring, SimpliSafe.
• DocuSign: E-sign leases and store documents securely.
• DoorLoop: Manage leases and communication all in one.

Why It Matters

Adopting the right technology can save you time, improve tenant satisfaction, and lower costs. These tools help you stay organized, keep tenants happy, and make property management more efficient overall.

Ignoring Property Marketing and Tenant Acquisition Strategies 

If you’re not actively marketing your properties, you’re facing longer vacancy periods and missing out on income. A strong marketing strategy is key to attracting good tenants, keeping your properties full, and maximizing your profits in today’s competitive rental market.

Why This Mistake Happens

• Relying on outdated or passive marketing methods (yard signs, newspaper ads).
• Poor rental listings (low-quality photos, weak descriptions, no SEO).
• Lack of digital ads and social media outreach.
• No virtual tours or video walkthroughs.
• Ignoring online reviews and reputation management.

How to Avoid This Mistake

• Optimize listings with SEO, professional photos, and detailed descriptions.
• Use social media ads and content marketing to target renters.
• Offer virtual tours and 3D walkthroughs for remote applicants.
• Encourage tenant referrals and online reviews for credibility.
• Invest in paid digital ads to expand reach.
• Automate follow-ups to respond quickly and schedule viewings.

Effective Digital Platforms for Tenant Acquisition

• Listing Optimization & SEO Tools
  • Zillow Rental Manager – Syndicates listings across multiple platforms for maximum visibility.
  • Apartments.com – Offers advanced search filters for targeted marketing.
  • RentRedi – Automates listing distribution and lead tracking.
• Social Media & Digital Marketing
  • Facebook Marketplace – Direct listings and targeted local advertising.
  • Instagram & TikTok – Ideal for showcasing properties through short videos and reels.
  • LinkedIn – Effective for targeting professionals and corporate rentals.
• Virtual Tour & Video Walkthrough Tools
  • Matterport – Creates immersive 3D virtual tours.
  • Zillow 3D Home – Affordable solution for virtual property tours.
  • YouTube – Perfect for video walkthroughs and property highlights.

Not Staying Updated on Industry Trends and Legal Requirements – The Importance of Ongoing Education

Property management isn’t a static field—things change all the time. From rental laws to market shifts, staying up-to-date is essential to avoid legal headaches and maintain a successful business. Ignoring these updates can result in costly fines, lawsuits, and tenant disputes.

Why This Mistake Happens

• Underestimating legal complexity, leading to accidental violations.
• Relying on outdated knowledge due to a lack of ongoing education.
• Failing to monitor state and local law updates, which can vary widely.
• Lack of expert legal guidance, increasing the risk of costly mistakes.

Key Areas to Keep an Eye On

• Fair Housing Laws: Avoid discrimination and ensure compliance.
• Eviction Regulations: Follow proper procedures to prevent legal disputes.
• Security Deposit Rules: Know the right way to handle deposits to avoid conflicts.
• Rent Control & Pricing: Stay compliant with rent increase and eviction limits.
• Property Maintenance Codes: Keep your property in line with habitability standards.
• Tax Laws: Ensure you’re reporting accurately and maximizing deductions.

How to Stay Updated

• Join Professional Associations – Stay informed through industry updates and legal resources:
  • NARPM – Training, legal updates, and best practices.
  • IREM – Property management education and insights.
  • NAA – Rental housing regulations and advocacy.
• Attend Legal & Industry Seminars – Learn about regulatory changes through state and local real estate board courses.
• Subscribe to Real Estate Law Blogs & Newsletters – Get updates from legal experts and property management organizations.
• Consult Legal Experts – Ensure compliance before implementing policy changes.
• Leverage Technology – Use property management software with legal updates and document automation.

The Competitive Advantage of Staying Informed

Property managers who prioritize ongoing education not only avoid legal pitfalls but also gain a competitive edge. Staying ahead of market trends allows them to:

• Adjust rental strategies to match demand.
• Implement new technologies that improve efficiency.
• Strengthen relationships with tenants by demonstrating professionalism and compliance.

Overlooking Tenant Retention Strategies – Why It’s More Cost-Effective to Keep Tenants

We all know tenant turnover can be a headache. It’s not just about finding new tenants—it’s about the costs that come with it. Retaining good tenants means fewer vacancies and less time spent on marketing.

Why This Mistake Happens

• Prioritizing new tenants over keeping the current ones.
• Delayed maintenance making tenants feel neglected.
• Poor communication creates dissatisfaction
• Inflexible lease renewals pushing tenants to leave.

Hidden Costs of Tenant Turnover

• Marketing: Ads, listings, and promotions.
• Vacancy Loss: No rent coming in while the unit is empty.
• Repairs & Cleaning: Fixing up the unit after tenants leave.
• Leasing & Screening: Background checks and admin work.

Retention Tips

• Respond quickly to maintenance requests: Address issues within 24-48 hours.
• Offer renewal perks: Small incentives like free carpet cleaning or minor rent discounts.
• Improve communication: Use tenant portals and check in regularly.
• Create community: Hold events and offer referral bonuses.

Long-Term Benefits of Tenant Retention

• Stable Rental Income – Reduces financial uncertainty with consistent occupancy.
• Lower Costs – Minimizes turnover-related expenses like repairs and marketing.
• Stronger Reputation – Positive tenant reviews attract quality renters.

Micromanaging Instead of Delegating 

As a new property manager, it’s easy to fall into the trap of wanting to control every detail. You might think that doing everything yourself will get the best results. But here’s the thing—micromanaging can actually hold you back, leading to burnout, inefficiency, and missing opportunities for growth. The key to success? Learning when and how to delegate.

Why This Mistake Happens

• Lack of trust – Fear that others won’t meet expectations.
• Desire for control – Worry that outsourcing lowers quality.
• Budget concerns – Viewing hiring as an expense, not an investment.
• Difficulty letting go – Struggling to shift responsibilities.

When It’s Time to Delegate

• If you’re managing more than 20 properties, struggling with maintenance requests, or drowning in admin work, it’s a sign that delegation is overdue. Delegating doesn’t mean losing control—it’s about freeing up time for growth while ensuring your tenants get the best experience.

When to Delegate & Who to Hire

Task | Solution | Benefits

• Property Management Operations → Hire an assistant property manager
  Supports tenant relations, lease renewals, and daily operations efficiently.
• Maintenance Coordination → Establish a preferred vendor list
  Ensures timely, reliable, and cost-effective property repairs.
• Bookkeeping & Financial Tracking → Use accounting software or hire a property accountant
  Minimizes errors, ensures compliance, and saves time on financial management.
• Tenant Screening & Lease Processing → Automate with property management software
  Accelerates approvals, reduces errors, and enhances the tenant experience.
• Marketing & Tenant Acquisition → Hire a virtual assistant or work with a marketing agency
  Strengthens online presence and helps reduce vacancy rates.

How to Delegate Effectively

Start by identifying the tasks that take up the most time but aren’t directly helping your business grow. Use tools to automate repetitive tasks like rent collection or lease signing. When hiring, be clear about expectations and check in regularly to monitor progress—without hovering. Remember, delegation is all about focusing on growing your business, not getting bogged down in the details.

Long-Term Benefits of Delegation

• Reduced stress and improved work-life balance.
• Increased efficiency and better time management.
• Higher tenant and owner satisfaction due to faster response times.
• More time for strategic planning and business expansion.

How to Measure Success as a Property Manager

Success in property management isn’t just about avoiding mistakes—it’s about continuous improvement. Here are some key performance indicators (KPIs) to track:

Key Metrics to Track

• Occupancy rate – Aim for 95% or higher 
• Tenant satisfaction score – Conduct surveys 
• Response time to maintenance requests – Under 24 hours 
• Annual revenue growth – Track rental income increases

Final Thoughts: Succeeding as a New Property Manager

Starting out as a property manager can feel like a lot to juggle, but avoiding some common mistakes can really set you up for success. Here’s a quick checklist of things to keep in mind:

• Screen Your Tenants Carefully: You want reliable tenants who will take care of your property and pay rent on time.
• Draft Clear Lease Agreements: Make sure your lease is solid and easy to understand to avoid future headaches.
• Respond Quickly to Maintenance Requests: Nobody likes waiting on repairs. Fast responses keep tenants happy and your property in good shape.
• Communicate Effectively: Whether it’s tenants or property owners, clear communication is key to smooth relationships.
• Stay Organized with Digital Tools: Using tools to track everything—payments, repairs, leases—keeps you on top of things and compliant with the law.
• Stay Current on Industry Trends and Legal Updates: Laws and market conditions change, and staying updated can save you from costly mistakes.
• Focus on Tenant Retention: It’s way cheaper to keep good tenants than to constantly find new ones.
• Don’t Be Afraid to Delegate: You can’t do everything yourself! Delegating tasks will help prevent burnout and free up your time to grow your business.

Investing in Training, Technology, and Planning for Long-Term Success

The best property managers know that it’s not just about avoiding mistakes—it’s also about continually improving. Investing in training helps you stay sharp and ahead of industry changes. Embracing technology makes your day-to-day tasks easier and faster, while also improving the experience for tenants and owners. And strategic planning ensures you’re not just managing properties but building a scalable business for the future.

By focusing on these areas and committing to continuous improvement, you’ll be well on your way to creating a thriving property management business.

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