The Top 10 Costly Mistakes Landlords Make When They Don’t Use a Licensed Property Manager

Owning rental property can be a powerful way to build long-term wealth—but only if it’s managed correctly. Many landlords choose to self-manage their residential properties, often believing they’re saving money. In reality, self-management frequently leads to costly mistakes that reduce profits, increase legal exposure, and create unnecessary stress.
Here are the top 10 mistakes landlords make when they don’t use a licensed professional property manager—and why working with an experienced team can protect your investment.

1. Improper Tenant Screening
One of the most common mistakes is inconsistent or incomplete tenant screening. Missing red flags like prior evictions, unstable income, or poor rental history can result in months of unpaid rent and expensive evictions.
A licensed property manager uses consistent, legally compliant screening standards to protect you from bad tenants and discrimination claims.

2. Violating Fair Housing Laws
Many landlords unintentionally violate federal or state fair housing laws through advertising language, screening questions, or inconsistent application of criteria. Even one complaint can lead to thousands of dollars in fines and legal fees.
Professional property managers are trained to follow fair housing laws strictly and consistently, reducing your legal risk.

3. Using Weak or Outdated Lease Agreements
Online or generic leases often fail to include state-specific clauses, HOA requirements, maintenance responsibilities, or legally required disclosures. This can make leases unenforceable when problems arise.
Licensed property managers use current, state-approved lease agreements designed to protect landlords in court.

4. Mishandling Security Deposits
Failing to meet deadlines, making improper deductions, or not providing proper documentation can result in penalties—sometimes up to double or triple the deposit.
A professional manager ensures deposits are handled, documented, and returned according to the law.

5. Delayed or Poor Maintenance Decisions
Small maintenance issues become expensive problems when ignored. Unlicensed or uninsured contractors can also expose owners to liability.
Property managers maintain vendor networks, negotiate better pricing, and document repairs properly—protecting both the property and the owner.

6. Incorrect Rental Pricing
Overpricing leads to longer vacancies. Underpricing leaves money on the table every month. Emotional or outdated pricing strategies can cost landlords thousands per year.
Professional managers rely on real-time market data to maximize rental income while minimizing vacancy.

7. Inconsistent Rent Collection
Allowing late payments, accepting partial rent incorrectly, or failing to issue proper notices weakens your legal position and encourages poor tenant behavior.
Licensed property managers enforce clear, consistent rent collection policies that protect your rights.

8. Improper Eviction Handling
Self-help evictions, incorrect notices, or missed court procedures can delay the process for months—or expose landlords to lawsuits.
A professional property manager understands the legal eviction process and ensures everything is done by the book.

9. Poor Record Keeping
Incomplete records, mixed funds, and missing documentation can create problems during audits, disputes, or tax season.
Property managers provide organized financial records, maintenance logs, and year-end reporting, giving you peace of mind.

10. Emotional Decision-Making
Many landlords avoid rent increases, give repeated chances to problem tenants, or delay action because they feel uncomfortable enforcing rules.
Professional managers remove emotion from the process and make business-focused decisions that protect your investment.

Why Professional Property Management Pays for Itself
A licensed property manager doesn’t just collect rent—they protect your asset. The cost of management is often far less than the cost of:
One bad tenant
One legal mistake
One prolonged vacancy
In most cases, professional management increases net income while reducing risk and stress.

Ready to Protect Your Investment?
If you’re tired of late payments, tenant issues, or legal uncertainty, professional management may be the smartest move you make.
Contact Mo Wilson Properties today to learn how we can help you maximize returns and minimize headaches.