Now and again, I know I will not make an owner happy. What they're looking for in a property manager just isn’t me. So much of this business is about preference: communication style, risk tolerance, portfolio goal alignment, etc. I hate to say it, but I usually know within the first 10 minutes with a potential owner-client that we’re not a good fit. As a company owner, it’s hard to come to terms with that fact. Having a team of property managers to keep busy, I always look for ways to say “yes” or make it work. But what I’ve come to realize in this business is sometimes a yes today creates headaches and heartaches tomorrow (and the day after that, and the day after that…). But at the end of the day, my goal is to make sure the client is happy, and sometimes, that’s not with us. It makes me think of Santa Claus in Miracle on 34th Street. He pointed people to competitors’ stores and, in exchange, gained their trust. Trust is the real currency of property management, and without it, no one wins.
Here are a few of the owner clients we tend not to be a fit for:
#1- The Burger King (Have it Your Way)
Property Management is an industry of systems and scale. As a business, we make very little on each property individually each month. As a fellow property manager once told me, “It’s a game of peanuts.” We are profitable by being able to expertly and efficiently manage a high volume of properties. There’s value in this, and that value is inherently undercut when we start taking special requests. We once had a potential owner who wanted to keep the garage full of heirloom tools while the house was rented out. They requested that we inventory the tools regularly to make sure the tenant didn’t take any of them, because they were extremely valuable. All I could think was if anything ever walked away, the landlord would be upset with both the resident and us. This is outside the scope of what we do, and I let the owner know that. Unfortunately, it cost us the business, but I am not losing any sleep at night making sure we’re protecting expensive family heirloom tools.
#2- The DIY-er
One of our most common landlords tends to be what we call the “accidental landlord.” This is often someone who lived in the house and, for whatever reason, has opted to lease it out and move on. This makes them uniquely aware of a home’s quirks, which can be a huge benefit. However, it can also be hard to realize they’re not permitted to make repairs.
When you self-manage, it’s no problem for the landlord to go over and do their own repairs. However, as a company, we’re stringently bound to ensure we’re using licensed contractors and following the property code to a “T.”
Once upon a time, we had an owner who wanted to go over to the house and do his own repairs. This was early in my management days, and my over-eagerness won out, so I agreed. The owner agreed not to mention that he was the owner and just do a few minor fixes around the house for the tenant. The next thing I knew, the owner and tenant were texting directly anytime something came up. Which, honestly, could have been ok, except that the owner decided one of the problems in the home was the tenant’s fault and he wasn’t going to fix it. Fast forward, the first time we heard about this dispute was two weeks later, when the tenant was livid and frustrated. We were inadvertently put into a lose/lose mediation situation because we hadn’t had the opportunity to inspect the initial problem or do any sort of mitigation of damages. Both the owner and resident were extremely frustrated with us while we were just trying to figure out what in the world went wrong.
Now, we ensure we’re the first point of contact with both the tenants and owners. We know we can streamline both communication and repairs, so we’re able to make everyone happier in the long run when the owner passes over the reins.
#3- The Neighbor
Occasionally, we have an owner who purchases a home next door or very close to where they live. If they’re driving by the property on a daily basis, I can guarantee they’re going to pass by the property more than we are. If they feel like the yard is looking a little high, or they notice there’s one too many cars in the driveway one day, panic can start to set in. Being a property manager is a delicate balance of ensuring we have a good relationship with the tenant because tenants who feel comfortable and “at home” in their rental are more likely to take care of the property and renew their leases, two of the largest contributors to ensuring maximum profitability for a landlord.
If we’re calling and micromanaging a tenant every day, they’re going to start looking for somewhere with a little more privacy. Our routine checks are sufficient in ensuring the property is well-maintained and cared for. It’s one of the reasons we started billing for repairs before the tenant moves out—to make sure we can protect the home asset as best as possible, and it’s left in the same condition as when they moved in.
#4- The Keyboard Landlord
There is an abundance of online education available for real estate investing, and we genuinely believe this is a positive thing. Education empowers everyday investors to build portfolios with confidence, and we’re big supporters of learning before you leap. From time to time, we connect with prospective landlords who haven’t purchased their first property yet but are already looking to assemble a strong team. We actually love that approach and are happy to advise, educate, and share insights along the way.
Challenges can arise when theoretical knowledge is treated as a substitute for hands-on experience. Property management is a learn-by-doing business, and many of the systems, policies, and best practices we use today were shaped by real-world lessons—some of them hard-earned. Those experiences have helped us refine processes that protect both our clients and their investments.
We’re always glad to explain the why behind how we operate and to collaborate with owners who value open communication. That said, our workflows are intentionally designed based on years of experience, and we’re most successful when there’s trust in those systems rather than frequent attempts to reinvent them. When education and experience work together, that’s where the best partnerships are built.
At the end of the day, this isn’t about saying certain owners are “bad” or that we only want easy clients. Property management is not easy, and every owner brings their own goals, fears, preferences, and past experiences to the table. But the best owner/property manager relationships are built on trust, clear expectations, and a shared belief in the systems being used to protect the investment. If an owner needs a level of customization, control, or communication that falls outside our operating model, that’s okay. It just may mean we’re not the right company for them. And honestly, I’d rather be upfront about that on day one than spend the next twelve months trying to force a relationship that leaves everyone frustrated. Sometimes the best service we can provide is not a signed management agreement. Sometimes it’s honesty, a helpful conversation, and pointing someone in the direction that will truly serve them best.
