All Forum Posts by: Lucas Hannon

@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! 

Lucas,

I just wanted to take a moment to apologize if my previous response came across as too harsh or condescending. That was never my intent. I’m incredibly passionate about real estate and property management, and sometimes that passion makes me come off stronger than I mean to.

The last thing I want to do is discourage you from learning. In fact, I respect the hell out of the fact that you’re stepping up and trying to gain knowledge in this business. Property management isn’t easy, and anyone willing to take the time to figure it out deserves credit.

My concern was never about you personally—it’s about making sure you set yourself and your friend up for success. Mistakes in this business can be expensive, legally risky, and stressful, and I’ve seen too many people learn the hard way when they didn’t have the right knowledge or systems in place.

If I came across as talking down to you, I truly apologize. That wasn’t my goal. I just wanted to highlight the risks so that you (and your friend) can be better prepared. If you’re serious about property management, I’d actually love to help point you toward good resources—books, courses, or even personal experiences that can help you avoid some of the common pitfalls.

At the end of the day, we’re all here to learn and grow together. If you ever want to talk shop, swap stories, or discuss strategies, I’d be more than happy to. Again, my apologies for the way I came across—I only meant to be helpful, not discouraging.

Looking forward to hearing more about your journey, Lucas. Wishing you success in whatever path you take in real estate!

Best,

William J. Anderson 

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

• 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.

• 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.

• 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.

• 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.

• 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.

Hi there,

Pretty new to REI as well.

Things I've done to gain knowledge:

-Listen to BP podcast

-Read RE books

-Enrolled in a RE course (I take an exam in a few months to obtain my license)

-Look at listings throughout the day in states I've been eye-ing

-Analyze potential deals by plugging numbers in a spreadsheet (to calculate what ROI will be first year, second year, etc)

-Been reaching out to seasoned RE investors

-Saving more $ to increase capital

Good luck to us! We got this!