These are some of the ways the clients could be affected by property managers who are not prepared: Extended VacanciesInadequate marketing strategies and tenant screening processes can result in prolonged vacancy periods, translating into substantial lost rental income.High tenant turnover due to poor resident relations further exacerbates vacancy losses.Inadequate Maintenance and RepairsNeglecting preventive maintenance and delaying necessary repairs can lead to accelerated property deterioration and higher long-term repair costs.This can also negatively impact tenant satisfaction, contributing to higher turnover rates.Legal and Compliance IssuesLack of knowledge or disregard for landlord-tenant laws and regulations can expose investors to costly legal disputes and penalties.Failure to properly handle security deposits, evictions, or fair housing practices can result in significant financial liabilities.Ineffective Financial ManagementInaccurate budgeting, expense tracking, and financial reporting can lead to uninformed decision-making and missed opportunities for cost savings.Failure to optimize tax strategies and leverage available deductions can further reduce net returns.Diminished Property ValueInadequate maintenance, high vacancy rates, and poor tenant screening can negatively impact a property’s perceived value and appreciation potential.This can significantly affect the long-term return on investment when it comes time to sell the asset.While a 10% management fee may seem reasonable for a well-performing property manager, the cumulative impact of mismanagement can quickly escalate the effective cost to investors, potentially outweighing any perceived savings on the management fee itself.

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

It allows you to put 5% down, whereas the minimum for a conventional product is 15% (I'm not a lender, but that's the last I was told by my go to lender).

@Dick O'Hare I have not used Blueprint's products yet, but I have a business partner who has worked with Jeff Welgan and that's how I was introduce.

I looks like the former, based on the following definition --"The term placed in service means the time that property is first placed by the taxpayer in a condition or state of readiness and availability for a specifically assigned function, whether for use in a trade or business, for the production of income, in a tax-exempt activity, or in a personal activity."

@Rys F.Be careful on the dumpsters - they get filled the trades will hit you up for delays and lost productivity if they are full and not emptied and they cannot do their work.

That is your message, your business, your modiel, your product , your service.

Seems like I should just accept a poor performing investment and wait.

Hey- Tiamo from the BiggerPockets product team here.

And that’s what ppl think they can find if they listen to real estate podcasts that set improper expectations (and really just want them to spend money on their products/deals)That being said year 1/2 can be rough with unexpected (should have expected) repairs from the prior owner.