How Can I Be a Good Property Manager for My Friends Multifamily Property?

Question

Hey everyone,

A
 friend of mine plans to purchase a multifamily property in the future 
and has asked me to be the property manager. I'll be living in one of 
the units while managing the property, but I don't have much 
experience in property management.

I'd love to hear from experienced investors and property managers:

1. What are the key responsibilities I should be aware of?

2. What systems or tools should I set up to stay organized?

3. What are some common challenges new property managers face, and how can I prepare for them?

4. Any book or course recommendations for learning property management?

5. Any legal or tenant-related considerations I should know upfront?

6. Any general roadmap on how most things/processes will play out?

He is also aware of this but trusts me with learning and adapting.

I appreciate any advice or insights you can share!

Gustavo Delgado · Answer

you can't. Too many rules and laws you need to be familiar with and you will ruin your friendship when things hit a road bumps.

Angela Harding · Answer

I too agree with William.

If this is a good friend, tell him to find a reputable property management company and you can just be the eyes and hears on the property. Not having the proper experience and knowledge could cost you a friendship and is a huge liability risk for your friend.

Angela

William J Anderson · Answer

Lucas, I respect your willingness to step up and take on property management, but I want to strongly caution you (and your friend) about the risks of managing a multifamily property without experience, certifications, or financial investment in the deal. While you're in Houston, Texas, and I’m not deeply familiar with local laws there, the core risks of putting an inexperienced manager in charge remain the same everywhere.

The Biggest Risks Your Friend is Facing by Letting You Manage the Property

1. Legal Mistakes Can Lead to Lawsuits or Tenant Claims

• Texas has landlord-tenant laws on security deposits, repairs, evictions, and fair housing compliance.
• If you mishandle security deposits, maintenance requests, or notices, your friend could get sued or be forced to compensate tenants.
• Evictions require proper legal procedures. If you don’t serve notices correctly or follow the law, tenants could delay the process for months, costing your friend thousands.

2. No Certifications, No Insurance = Maximum Liability

• Professional property managers typically have Errors & Omissions insurance, liability coverage, and legal training to protect themselves and the owner.
• If a tenant sues for wrongful eviction, habitability issues, or a lease dispute, the owner is the one legally and financially exposed.
• You likely don’t have a property management license, which might be required for certain tasks.

3. Poor Tenant Screening = High Risk of Rent Loss & Property Damage

• Good property management starts with tenant screening. Do you have a system to verify income, creditworthiness, eviction history, and rental references?
• A bad tenant can cause thousands in damages, months of unpaid rent, and expensive evictions. If screening isn’t done correctly, your friend will bear the consequences.

4. No Maintenance Plan = Rising Repair Costs & Fines

• Are you prepared to handle 24/7 emergency maintenance calls? What happens when the HVAC breaks down, plumbing leaks, or pests become an issue?
• Without a network of licensed contractors, you’re likely to overpay or hire unqualified handymen—leading to expensive fixes and possible city violations.
• Delaying repairs could mean code violations, tenant lawsuits, or loss of rent.

5. Evictions & Lease Enforcement Are Complex

• Do you know how to legally enforce a lease, issue notices to comply/pay rent, and handle lease violations properly?
• If a tenant refuses to pay, one wrong move on an eviction notice can reset the process, causing your friend to lose months of rental income.
• Courts tend to favor tenants who can prove the landlord failed to follow legal procedures—and without experience, it’s easy to make costly mistakes.

The Harsh Reality: You Have No Skin in the Game

Your friend is putting up the money, the risk, and the liability. You don’t own the property, you don’t have legal or financial exposure, and you can walk away if things go south.

But if you mismanage the property, your friend is the one who:

• Loses money from unpaid rent and legal fees.
• Pays out-of-pocket for tenant damages.
• Faces lawsuits or fines for non-compliance.
• Deals with the fallout of a bad reputation.

What Your Friend Should Do Instead

• Hire a licensed, experienced property manager who knows Texas laws, tenant screening, and maintenance management.
• If you want to be a property manager, get trained. Look into certifications, legal compliance courses, and insurance before jumping in.
• Don’t treat this like a side gig. Property management is a legal and financial responsibility—not something you figure out as you go.

Final Thought

Lucas, I get that you want to help your friend, but this is a job, not a favor. Unless you get properly trained, insured, and structured as a real property manager, you’re likely to cost your friend more than you save. I highly recommend your friend hires a professional—because cutting corners on property management rarely ends well.

Drew Sygit · Answer

@Lucas Hannon so, you're going to manage a property that you don't own?

You may want to check out state & local laws about 3rd party property management and confirm you can comply.

Regarding what to do, check out all the materials BiggerPockets has under the Manage Properties tab!