How do we ensure we are protected?

This will protect you in the long run! 

What is lacking is protection from a sudden surge in inflation - or devaluation of the dollar.What I try to do, to get the best of all worlds, is I have 50% of my portfolio in performing notes, and the other 50% in real property. 

To protect my investment I always get a Home Warranty for rentals.  

That's a much smaller loss than what you've currently paid.A good PM would give you regular updates and take charge of the situation to protect your income.

That said, they have more incentive to chase big accounts and those of debtors who have significant assets to protect. 

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

.- Consider liability protection: Look into forming an LLC or other business entity.Starting with cash is a smart move to minimize risk and learn the process.

The name was edited to protect the innocent.

Warren Buffet says "Diversification is protection against ignorance.