There are many bad property managers out there. If you can’t find a good one, you shouldn’t hire one. I’ve been in property management long enough to know this industry has a problem. And yes, I’m saying that as someone who works in it every day.
If you’ve ever heard a horror story about a property manager, you’re not alone. Fear of late owner distributions, ignored calls, and careless spending are just a few of the reasons why many Oxford rental owners may decide to self-manage.
And the truth? Those fears are valid.
Bad property management exists, and it can cost you more in stress and money than doing it yourself. Nationwide, about 65% of rentals are self-managed, often because owners have either experienced or witnessed the fallout of a bad management company.
I hear these stories from Oxford property owners on a semi-regular basis.
Here in Mississippi, the bar is especially low. There’s little regulation and almost no oversight.
HOA managers and short-term rental managers don’t need a license at all. Long-term rental managers technically need one, but licensing falls under the Mississippi Real Estate Commission, which focuses on sales. That means there’s virtually zero formal training on managing rentals. You end up with real estate agents running property management as a side gig or launching companies without the knowledge to do it well. And if someone is focused on sales, and property management is only a side gig, who do you think they’re going to spend more time on? A buyer or seller that could earn them $10,000 to $15,000 in two months, or your property that might bring in $2,400 for the entire year?
So if you’re going to hire a property manager, you need to go in with your eyes wide open.
Poor communication
If a manager is slow to respond to you or doesn't give clear information, they’re likely even slower and less clear with tenants. That leads to frustration, unresolved issues, and higher turnover.
Unfortunately, it’s tough to spot communication issues before you hire someone. But Google reviews can give you a clue. Is there a pattern of bad reviews? Even if people don’t explicitly mention communication, most complaints trace back to unclear expectations and poor follow-through.
Even if a manager communicates well with owners, we’ve found it’s surprisingly common for them to treat residents like an afterthought. That leads to a bad resident experience, which ends up costing you money.
Make sure to ask about their written communication policies. They should have clear standards for how quickly they respond to both owners and residents, with different timelines based on urgency.
If there’s no policy in place, you have no idea if your question will be answered in an hour or a week, and neither do your tenants.
Lack of Transparency
Poor maintenance and invoicing clarity
For many property owners, this is the number one fear: money being spent without oversight. Too often, managers approve maintenance work and send nothing but a generic invoice. No context. No explanation. No photo of the repair. No note about what was actually done or why. That lack of clarity opens the door to all kinds of problems. It can lead to double-billing, inflated repair costs, or unnecessary work. And when no one is clearly responsible, you’re left wondering where your money went and whether the issue was ever really handled.
But the issue isn’t just missing details. It’s also a lack of transparency in how maintenance is billed. Some managers employ their own in-house maintenance techs without clearly explaining how those services are priced or documented. Others use a more questionable practice called “white labeling,” where they pay the vendor directly, then re-invoice the owner from the management company, adding a hidden markup.
White labeling creates too much room for abuse. When the invoice comes from the manager instead of the actual vendor, there’s no way for the owner to verify what was paid or whether the markup is fair. It’s not a practice we support. A better approach is for owners to receive original vendor invoices and see any markup disclosed clearly on the statement.
In-house maintenance, on the other hand, can be a good arrangement but only if it’s fully transparent. If a manager employs their own techs or owns a maintenance company, you should know that upfront. And you should clearly understand how those services are priced.
For example:
- Hourly billing should show labor hours and material costs.
- Percentage-based billing should clearly state the percentage charged.
- Book time billing should include a clear pricing list.
Bottom line: Transparency is a must.
Reports that are vague or not sent at all
We’ve spoken to owners who tell us their manager isn’t sending statements regularly, or that they’ve gone several months without receiving one at all.
A professional manager should be using property-management-specific software with built-in accounting safeguards. They should send detailed, itemized statements on the same day every month. If a statement doesn’t clearly show rent received, expenses paid, and maintenance activity, that’s a red flag. It either means the operation is poorly run or something questionable may be going on with the money.
It still amazes me that some owners will go months without receiving proper statements, yet continue letting those managers handle their property. If we did everything else poorly, the one thing we must get right is accounting.
And one last note: If a manager isn’t willing to invest in management software, you have to wonder where else they’re cutting corners. Good software is a minor expense in the grand scheme of running a business. If they won’t invest in their own operation, they shouldn’t be running yours.
Maintenance & Repairs Red Flags
The number one reason most residents choose not to renew their lease is poor maintenance service. When repairs are not handled well, residents do not just get frustrated; they start making plans to leave. That leads to higher turnover and more costs for you as the owner.
Repairs take too long
When a manager does not treat maintenance with urgency, it creates frustration for residents and can cause further property damage. Even small delays, like a leaky faucet or running toilet left for weeks, send the message that the property is not well cared for.
While a drippy faucet or a leaking toilet may seem like a minor repair, residents have different personalities and priorities. Some people might not be bothered at all, while others are very conscious of their utility costs. For those residents, something as simple as a running toilet or a leaky faucet can feel like money going down the drain. Literally. Regardless of the resident’s personality, a good manager handles maintenance issues promptly and thoroughly to protect the property and maintain trust.
No communication with residents
Too often, managers do not acknowledge maintenance requests at all. Residents submit an issue and then hear nothing, no confirmation it is being handled, no details on who will fix it, and no timeline for completion. This silence damages trust and leaves residents wondering if the issue will ever be addressed.
At a minimum, residents should receive:
- Immediate confirmation their request was received.
- The name or company of the person assigned to the job.
- An estimated date or time window for completion.
Letting repairs slide
Sometimes a manager makes decisions based on what they’d tolerate in their own home. If they could live with a dripping faucet or a running toilet, they may assume it’s fine for your rental too.
But managing rentals is a business. If that same manager ran a burger joint and served undercooked patties or stale buns, customers would stop coming. The same thing happens with rentals: poor maintenance leads to unhappy residents and a damaged reputation.
And reputation matters. Good residents pay attention to who manages a property before they sign a lease. If they’ve heard bad things, they’ll choose a different home.
When that happens often enough, it snowballs. Quality applicants pass on your property, and you start attracting tenants who are more likely to cause problems and less likely to take care of the home.
Property Assessments & Inspections Red Flags
Thorough turnover inspections are one of the most effective ways to protect your property’s value, yet many managers treat them as a box to check. At move-in and move-out, the inspection should be detailed enough to catch even minor damage, document it properly, and ensure it is charged to the correct party when appropriate.
Unfortunately, many managers do a “walk-through” in 15 minutes, glancing at the paint, replacing a few light bulbs, and calling it good. This approach misses small but important issues like water damage under sinks, broken fixtures, or signs of pest problems. Over time, these missed items can add up to major repairs that you, the owner, will end up paying for.
A proper inspection between residents should:
- Document the property’s condition with photos and detailed notes.
- Check all major systems and appliances for function and safety.
- Look for signs of leaks, mold, or hidden damage.
- Clearly list and charge for any tenant-caused damage.
Without this level of inspection, your property will gradually decline in condition. That makes it harder to attract quality residents, and after enough years of neglect, the cost to bring the home back to standard can be staggering.
Tenant Screening Red Flags
The quality of your residents directly impacts your property’s value, your expenses, and your peace of mind. The wrong placement can cost far more than a few weeks of vacancy, so tenant screening must be thorough, consistent, and based on educated decision-making.
Rushing to fill vacancies with weak or uninformed screening
A quick placement might look good on paper, but speed often sacrifices quality. If a manager’s priority is filling the unit fast, they may skip essential steps, or worse, they may not have strong screening standards to begin with.
Good screening goes beyond a surface check. It means understanding what the results actually mean and how they signal potential risk:
- Credit scores: Know which ranges are acceptable and which indicate high risk.
- Income ratios: Apply the right rent-to-income percentage for your market.
- Rental history: Look for patterns of late payments or landlord disputes.
- Background checks: Use them where legal and review results with fairness and consistency.
- Fraud detection: Spot fake pay stubs, altered IDs, or fabricated references.
What you find in screening often predicts how the applicant will treat the property. A thorough, educated process protects your investment, keeps repair costs low, and secures residents who will respect and care for the home.
Legal & Compliance Red Flags
Property management is not just about collecting rent and arranging repairs. It also involves staying on top of legal requirements and enforcing the lease consistently. A manager who is careless in these areas can expose you to costly risks.
Sloppy with lease enforcement
Some managers treat lease enforcement as an afterthought. Once a resident moves in, their focus shifts to collecting the rent, taking their commission, and sending the remainder to the owner. This “do as little as possible” approach means violations like unauthorized pets, excessive occupants, or property damage often go unchecked. Allowing these issues to slide sends a message to residents that rules are flexible, which can invite even more problems. Consistent enforcement protects your property and prevents small issues from becoming costly repairs or disputes.
Not up-to-date on Fair Housing laws
Fair Housing laws apply to everyone involved in renting a property, including you as the owner. Your property manager is legally considered your representative, which means that if they violate these laws, you can be held liable for their actions. One misstep, whether intentional or not, can lead to complaints, investigations, fines, or lawsuits.
Some common ways managers unintentionally violate Fair Housing laws include:
- Using discriminatory language in rental ads, such as stating a preference for families without children or for certain age groups.
- Not having written screening criteria and failing to apply the same standards for every applicant can lead to biased decisions and result in discrimination claims.
- Mishandling Emotional Support Animal (ESA) requests. Some managers automatically assume an ESA is “fake” and either deny the request or impose restrictions. This can be an extremely costly mistake. Fair Housing laws require ESAs to be treated as a reasonable accommodation for tenants with disabilities, which means no pet deposits or breed restrictions. Even if a manager suspects the documentation is questionable, there is a legal process for handling it, and skipping that process can result in fines or lawsuits.
A good manager invests in ongoing legal education, keeps detailed written policies, and follows them consistently to prevent discrimination and ensure compliance.
Final Thoughts
There are a lot of bad property managers out there. If the one you’re considering won’t do what a manager should do, you’re better off not hiring them. At least then, you’re not paying someone to do a poor job and leave you with bigger problems.
But here’s the thing: managing a property badly, whether it’s done by a paid manager or by you, still creates the same mess. The same resident turnover. The same maintenance issues. The same lost income. If you’re going to manage it yourself, you have to be willing to do it well. Otherwise, you’re just another version of the problem you were trying to avoid, and now you’ve got all the headaches.
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