3 Costly Mistakes Property Managers Make (And How to Fix Them)
Effective property management requires more than just collecting rent and handling maintenance requests. Small inefficiencies—often overlooked—can add up to significant losses over time. Three areas, in particular, tend to cause unnecessary expenses and vacancies: turnover delays, vendor inefficiencies, and lease renewals.
Through experience managing multiple properties, we have identified these common pitfalls and developed strategies to mitigate them. Whether self-managing or working with property managers, optimizing these processes leads to higher profitability and smoother operations.
1. Turnover Delays: The Hidden Cost of Vacancy
Every day a rental unit sits vacant represents lost income. However, many property managers wait until a tenant moves out before addressing market rent, listing the unit, or scheduling necessary repairs. This reactive approach often adds two to four weeks of unnecessary vacancy—a costly oversight.
How to Fix It:
✅ Pre-list units before move-out. If permitted by local regulations, begin marketing at least 30 days before the lease ends. This minimizes downtime between tenants.
✅ Assess market rent in advance. Regularly reviewing comparable listings allows for proactive pricing adjustments rather than last-minute changes.
✅ Coordinate vendors early. Ensuring cleaning, painting, and repairs are scheduled in advance prevents delays.
📉 The Impact: Reducing vacancy by even one to two weeks per turnover can significantly improve annual rental income.
2. Vendor Costs: Overpaying Without Realizing It
Property managers often default to the same vendors without reassessing costs or negotiating better rates. Landscaping, maintenance, and trash collection are prime examples where inefficiencies can lead to thousands of dollars in excess expenses annually.
How to Fix It:
✅ Compare vendor rates across properties. Identifying pricing discrepancies can reveal cost-saving opportunities.
✅ Renegotiate contracts annually. Many vendors offer lower rates for long-term relationships or bundled services.
✅ Hold property managers accountable. If vendor costs at one property are significantly higher than others, an evaluation is needed to determine the cause.
📉 The Impact: Regularly reviewing vendor expenses ensures that operating costs remain competitive without compromising service quality.
3. Lease Renewals: Preventing Unnecessary Turnover and Rent Loss
Lease renewals are often overlooked until the last minute, leading to preventable vacancies or units rented below market value. Many tenants would renew with proper engagement, but a lack of proactive communication results in unnecessary turnover.
How to Fix It:
✅ Track lease expirations 90 days in advance. This allows time for renewal discussions and rent adjustments.
✅ Offer renewal incentives when necessary. A small incentive, such as a minor upgrade or rent discount, can encourage long-term retention.
✅ Review market rents before renewal offers. Keeping rents in line with market conditions ensures steady income growth.
📉 The Impact: A well-managed renewal process reduces vacancies, minimizes tenant turnover costs, and maintains rental income stability.
Final Thoughts: Optimizing Property Management for Better Returns
While these inefficiencies may seem minor, they compound across multiple properties and can significantly impact overall profitability. Implementing structured processes for turnovers, vendor management, and lease renewals leads to better cash flow, reduced costs, and improved operational efficiency.
Tracking these key areas through systems and data-driven oversight is essential for scaling a rental portfolio. Whether using TrackMyRentals, a custom spreadsheet, or other property management tools, maintaining visibility into these aspects ensures higher returns and a more efficient operation.