Paying someone to fix thier mistake seems odd to me.

The number one mistake that I saw buyers making was jumping right into negotiating (and not very good negotiating at that) without first spending the time to build rapport.

We made a lot of mistakes like working in the wrong order and doing work just to keep my employees busy.

Many out-of-state investors make big mistakes that cost them far more than a property manager would charge.

@Ike Okwerekwu Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

What are the odds that this is a big mistake?

Connecting with experienced investors or joining local real estate groups can provide valuable insights and help you avoid costly mistakes.

I also require additional security deposit and sometimes a guarantor if they were approved in this manner.I also agree that this situation sounds like a pattern not a one-time mistake or short term tough situation that caused this.  

At the manual evaluation step, approximately 60% more are eliminated.

E&O insurance isn’t mandated but is a standard practice in the industry to protect against mistakes or oversights.