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Bad property management is a liability for homeowners. Find out 7 red flags to avoid and what to do about difficult property management in a rental home.

Bad Property Management Is a Liability: Here's What To Do To Avoid It

Property management is difficult and time consuming. Which is exactly why people hire property management companies — to make life easier. In theory, that is. 

Not all home management operators are equal and the wrong property manager can end up creating more problems than they solve. If the company breaches their contract or tenant rights, you could end up being sued by tenants for their mismanagement. This makes getting the relationship right an all-important decision for your rental home. 

Learn what red flags to look out for — and how to fix things if you think you’ve hired the wrong property manager. 

Can I be held responsible for bad property management?

Poor property management can lead to legal battles, vacancies, and tenant claims — all of which can become costly headaches for homeowners.

How can I get out of a contract with a property management company?

Read the fine print and keep careful records of issues. Documentation can help prove a breach of contract and avoid costly termination fees.

Local city departments and the HUD can be contacted to report misconduct with your rental home. 

Managing a rental home is not always an easy and straightforward process. It’s like running a business — your home is the product and your customers are the residents who live there. Yet many property managers seem to forget this and the way they deal with tenants leaves a lot to be desired. 

But failing to please a paying resident is far from the biggest problem here. The risk of poor property management can include serious legal consequences. Whether you take the job on yourself or hire a less-than-diligent property management company, common ways that landlords can land themselves in hot water include:

Violating Federal Fair Housing laws and/or state regulations

Entering the property without adequate notice

Failing to disclose hazardous living conditions like mold issues and lead from paint



Failing to take action on poor behavior including noise complaints and criminal activity

Failing to repair damage quickly, affecting the health, safety or security of the tenants

Refusing to return the security deposit in the statutory time limit or making unauthorized deductions

Any of these violations could result in a legal battle and claims paid to the tenant could wind up being double the damages or more. 

What are the red flags I should look out for?

Frustratingly, the biggest warning signs don’t often appear until after you’ve hired a substandard property manager. But there are red flags that could signal a company that is less than trustworthy. 

If you come across any of these before signing a contract, keep researching your options. If you encounter them as a customer, keep records of their management to protect yourself if you need to end a contract. 

Sometimes companies take on more homes than they can handle, which leads to bad service. If your property manager is slow to respond to you or tenants are constantly emailing them about a maintenance issue — this is a red flag. Unhappy tenants are unlikely to renew their lease and leave your home with more vacancies. 

When hiring a property management company, you should know exactly what you will be paid in rent and when. Any property manager who can’t keep to this schedule is bad news. 

Late payments could signal that they don’t have adequate bookkeeping practices in place. Or they can’t get tenants to pay on time. We’ve even heard horror stories of companies that use rent payments to float their own expenses, leaving homeowners hanging. 

Get guaranteed rent with Belong: Rent paid every month, regardless of when your residents pay. See why thousands of US homeowners are ditching outdated Property Management in San Francisco, San Diego, Los Angeles, Tampa, Jacksonville, Concord, Berkeley, Orlando and more.

Before signing any contracts, it’s worth finding out how much property management services will really cost you. What services are covered in the monthly fee? It’s common for low-cost services to upcharge for services that you may assume are essential, such as inspections, rent collection, tenant communication, renewing a lease, and support during evictions. 

It’s easy to be persuaded by the promise of high rental yields. But over-quoting what you can earn on your home is a red flag. Not understanding your local market or pricing homes too high leads to higher vacancy rates, earning you nothing. 

One of the things that makes property management difficult and time consuming is that it’s not a 9-5 job. Life at home happens after hours, which is also when residents will need the most support. You don’t need to be on-call 24/7 when handling maintenance requests — but it helps. Problems need to be addressed quickly and someone should always be available in case of emergencies. 

Belong is available 24/7. Not just for handling maintenance requests and not someone who will pass on a message. Belong gives both homeowners and residents access to a dedicated concierge service that is available whenever you need them. 

Learn More: Discover Belong PRO, the best alternative to Property Management in Seattle, Redmond, Oakland, and many more cities across California, Florida and Washington State.

One of the most difficult parts of managing a rental home is finding good tenants. This is what property management companies should do best, using tenant screening to verify employment, finances, references, and weed out potentially bad tenants. 

Before choosing a management company, find out what their history is like for finding (and keeping) residents. You can ask for their eviction rates and success rates to assess how they compare in the market. 

The only way to know your rental home is in good condition and residents are complying with their lease is through inspections. Without them, you could be in for a surprise when the residents move out. 

How to deal with a bad property management company

Avoid the Headaches of Bad Property Management

Protect your rental home asset and see why SFist, Expertise.com and Bay Area homeowners all rate Belong the best property management solution in San Francisco.

The Best Property Manager in San Francisco According to SFist and Expertise.com

A rental home is likely the most valuable asset you’ll ever own. How it’s managed and cared for can have a huge impact on both your net worth and overall financial freedom. This is why finding people you can trust to look after your rental and prioritize your own financial goals is a big deal. 

But the property management industry has failed at this for too long — putting profit at the expense of the people who own and rent homes. Belong exists to challenge the status quo of property management. We’re a modern, people-first alternative, which is why we’re thrilled to be recognized by SFist and Expertise.com as the best option for rental home management in San Francisco. 

If you’re deciding if Belong could be a good fit for you and your rental home, here’s why these two companies rate us the best property manager in San Francisco. 

Sfist.com: #1 Best Featured Property Manager in San Francisco

Since 2004, SFist.com has dedicated itself to providing guides to the best of everything in San Francisco. They put Belong at #1 of 11 Best Featured Property Managers in San Francisco. 

In their own words, here’s why SFist gives Belong 5-stars:

Belong is a cutting-edge property management company offering homeowners stress-free, hands-off rental management solutions. Serving both homeowners and tenants, Belong goes above and beyond to provide a concierge-like service that ensures every detail is handled seamlessly. With over 1,942 homeowners trusting in their service, Belong offers homeowners guaranteed rental payments, maximized rental value, and 24/7 professional responses to inquiries. By prioritizing financial alignment, Belong fosters a true partnership with their member community, ensuring long-term wealth and rental income stability. Their dedication to customer satisfaction can be seen in their reviews, making them an ideal choice for property management.” 

- SFist, 11 Best SF Property Management Companies in 2023 

Expertise.com: 19 Best Property Management Companies in San Francisco

When it comes to research, Expertise.com doesn’t muck around. They vet more than 60,000 businesses every month to find the best of the best. Belong sits on their 2023 list of Best Property Management Companies in San Francisco. 

Expertise.com researches professionalism and combines online reviews to determine how customers feel. They awarded Belong a glowing 5 stars for professionalism and 4.7 stars for reputation.

Belong doesn’t call itself a property management company because we are taking things in a whole new direction. We combine industry-busting technology with human smarts to make renting lovable for both homeowners and their residents.

Here are 12 ways Belong is unlike any property manager you’ve seen:

Guaranteed Rent 
Receive your rent on time, every month, regardless of when it’s paid by residents



24/7 Concierge Support
Both homeowners and residents have access to real-time support with Belong PRO, going above and beyond emergency maintenance requests.



Transparent fees
No hidden costs like setup fees or lease renewal charges.



Modern-day marketing
No extra fees for rental marketing must-haves like photography and video.



Market-driven insights
Belong utilizes market data and real-time interest to maximize the value of your home.



Everything at your fingertips
Get support, documents, cash flow insights, contractors, even finance and insurance solutions, all in one easy app. 



Long-term residents
Belong takes a personalized approach to match the right people, so they stay longer and feel at home.



Innovative financial solutions
Homeowners can manage cash flow effectively, even splitting the cost of maintenance and placement fees.



Eviction protection
Owners are shielded from up to $15,000 in legal costs if we ever place the wrong people.



Extensive vendor network
Belong connects homeowners with a vetted network of over 10,000 professionals for repairs and renovations.



Comprehensive insurance solutions
Belong offers insurance options that protect homeowners, their properties, and residents.



Lightning-fast listing responses
Belong directly integrates with top rental platforms such as Zillow and Zumper, getting you responses faster and vacancies filled. 


By partnering with Belong PRO, you won’t have to deal with the common complaints of traditional property management companies including poor communication, bad tenants, hidden fees, low-quality maintenance work, and high property vacancy. 

See why thousands of US homeowners are ditching outdated Property Management in San Francisco,San Diego, Los Angeles, Tampa, Jacksonville, Concord, Berkeley, Orlando and more.

What happens when you inherit a house? From other benefactors to mortgages and housekeeping, we cover what to expect and how to get help making key decisions

What To Expect When You Inherit a House and How To Handle It

What happens when you inherit a house? It's a question that is often asked at an emotional and stressful time in a person's life, when faced with the prospect or reality of losing a loved one. 

Inheriting a house comes with many financial decisions and tax implications to consider. You'll also need to involve any other benefactors, such as siblings. Belong breaks down some of those key decisions and who can help you navigate them.

What happens when you inherit a house with siblings or other people?

Multiple benefactors = many opinions. One may want to sell, another may want to hang onto the home to rent or even move in. The shared gift of a home can be a tricky situation to navigate. It's important to expect some bumps along the way, but to stay open with communication and try to respect everyone's opinion.

You'll need to work together to come to an agreement that works for everyone. Your options include:

One person buys out the other/s, either in cash or by financing part of the home's value to either move in or use the home as a rental property

Sell the home and split the profits after expenses

Rent out the home and share the profits after expenses

Allow one person to move in and owe rent to live in the home

How to handle inheriting a home with beneficiaries

Regardless of the decision you come to, a family attorney is the best place to start. This will help you to get advice, facilitate discussions between heirs, and have an agreement put in writing to avoid misunderstandings or complications after a decision is made. 

If you and the other beneficiary/ies can't agree, a family lawyer can also advise next steps. You may need to file a suit for partition, ordering the sale of the home. Be aware that this is a costly process and could erode your profits considerably when the sale comes through. 

For families who want to hold off making any snap decisions on the house you’ve inherited, the rental market is a good option. Turning the home into a long-term rental can allow you to earn income and appreciation on the home, while everyone takes their time to consider their options. Of course, managing a rental home also comes with significant work, so we recommend hiring a professional to take the stress (and potential arguments!) out of renting the home. 

What happens when you inherit a house with outstanding debts?

If the home you have inherited has a mortgage or outstanding debts against it, this could influence any decisions you make. In most instances, proceeds from an estate are used to clear any outstanding debts before any remaining funds are transferred to beneficiaries. Mortgages can be a bit different, though. 

The deceased estate may have been used to clear the mortgage, or there could still be money owing on the home. Be sure to speak to the financial institution that holds the debt, to discuss any clauses.

If the mortgage holder dies and their home is transferred to a relative or living trust, the mortgage repayments can usually be assumed by the heir/s. If you are not related to the deceased, you may need to watch out for due-on-sale clauses, which require mortgages to be paid in full when a home is sold or transferred. You would need to refinance the home at the current interest rate if this is the case, so seek professional financial advice specific to the home and your situation. 

Some people draw equity on their home during retirement by way of a reverse mortgage. You'll need to speak to the lender about how to satisfy this loan and the time restrictions on doing so. You may need to refinance this loan, use your own funds, or use the proceeds from a home sale to close this mortgage. 

If the property you are inheriting is worth less than the outstanding debt against it, the lender may agree to a 'short sale' and accept any proceeds from the sale, rather than go into foreclosure. 

How to handle inheriting a home with a mortgage

Again, this is a scenario where a family attorney is a good place to get legal advice on how to handle your specific situation. In the US, the Commercial Financial Protection Bureau (CFPB) has information about how to obtain mortgage information on a home you have inherited, as well as a list of HUD-approved counseling agencies and a hotline for anyone with questions relating to consumer finance and treatment from lenders. 

What happens when you inherit a rental home?

What happens when the house you have inherited isn't used as a main residence, but as a rental home? This adds another layer of complexity to the matter, as there could be residents already living in the home under a 12-month lease agreement. 

In this case, you and your family could wind up being what's commonly known as "accidental landlords". That is, someone who inherits a house along with a whole host of responsibilities that come with managing a rental property. 

You still have the option to sell or move in, but you'll need to get up to speed with local and state landlord-tenant laws and the terms of your lease agreement to avoid any issues where you may be liable for compensation. It's likely that the residents will have the right to stay in place until their lease expires, or you may want to look for a buyer who is interested in a tenanted investment home. 

How to handle inheriting a rental home: 

The easiest option in this scenario is to continue renting the home, keeping the residents in place to avoid breaking any legal agreements. When the tenancy is due to end, you (and the other heirs, if any) can decide what to do with the home going forward. 

Continuing to rent the home can be a beneficial option. Besides enjoying passive income, the IRS will consider the value of the home on its current market value, known as a "stepped up basis." This means that when it comes to capital gains tax if/when you do sell the home, the appreciation will be based on the value that you inherited it at. This is a big difference to if you were to buy an investment property for yourself, where appreciation will be based on what you paid for the home. You can learn more about the tax considerations for inherited homes here. 

Whether you're inheriting a home as an individual or as a family, it's important to get help with managing your new home and residents. You should also ask a lawyer or financial advisor about whether it's a good idea to transfer the property into a limited liability company (LLC) to manage, depending on the personal circumstances of you and/or the other heirs. This can keep your own personal and business assets separate from the inherited home.

If you're continuing to use the home as a long-term rental, you should be able to deduct the costs of lawyers and accountants for any advice or services relating to managing the home. 

What are some of the tasks I’ll need to do after inheriting a house?

In addition to all the major decisions, there's a fair bit of housekeeping that can be overlooked after inheriting a house. Be sure to:

Order an appraisal, to have a record of what the home is worth at the time of inheritance (essential when it comes to tax time and making financial decisions)


Keep paying homeowner or landlord insurance premiums, either transfer them from the previous owner or take out a new policy/ies and don't let them lapse!


Transfer utilities to avoid having them switched off


Continuing upkeep of the home and gardens to avoid it falling into disrepair


Find out if there is any finance on the home or unpaid property taxes due


Research options for professional advice on legal and financial matters

This story was produced by Belong and reviewed and distributed by Stacker Media.

Belong is simplifying the rental experience across the US and helping more homeowners reach their financial goals with the most hassle-free property management service; BelongPro.

Visit our local pages to learn more about the future of renting:

Inherited A Home? We Can Help!

What is a debt-to-income ratio and how does it affect mortgage lending when buying a rental home?

How To Master Your Debt-to-Income Ratio: A Guide for Rental Homeowners

When you’re looking at home financing, you’ll need to get acquainted with a figure known as your debt-to-income ratio (DTI). Before your eyes glaze over, it’s not too hard to calculate. 

What is a debt-to-income ratio and why does it matter? Mortgage lenders look at how much you earn every month and work out what percentage of that is attached to debt repayments. DTI won’t calculate your borrowing limit, but it helps assess your capacity to service a mortgage i.e. more debt. 

If your debt ratio is too high, it means you don’t have a lot of spare cash to make repayments. Or for a rental home, that you may not have enough cash flow to cover your expenses. 

In this article, we’ll cover how to calculate your debt-to-income ratio and how to lower it to secure an investment property for the rental market. 

A debt-to-income ratio is all monthly debt repayments divided by your gross monthly income. It’s used to determine your ability to manage mortgage repayments.

A debt-to-income ratio below 36% makes it easier to get approval for a mortgage. 

A debt-to-income ratio above 43-50% suggests that your debt is too high for the amount of income earned. 



Increasing your income or paying down small high interest debt such as car loans and credit cards can improve your DTI. 

There are ways to prove potential income for a rental home to be included in your DTI calculation, but this will depend on your lender. 

A debt-to-income ratio (or DTI) is calculated by adding up monthly debt payments and dividing them by your monthly income (before tax) to work out the percentage of debt vs income. 

When applying for a mortgage, lenders look at your income vs how much of it is attached two categories of financial obligations:

The dollar amount of ongoing household expenses such as mortgage payments, property taxes, insurance, HOA fees etc. 

The dollar amount of regular debt repayments such as credit cards or car loan, plus any other financial obligations you may have like student loans, child support or alimony payments.

This means a DTI only calculates debt and the fixed cost of ongoing financial arrangements. It doesn’t account for your household spending such as groceries or school fees. 

Example of a debt-to-income ratio calculation

If you had a salary of $75,000 per year, you would earn approx. $6,250.40 per month. Let’s say your household expenses total $1,500 per month and paying off a credit card and student loan costs you $350 per month. 

Debt-to-income calculation: 1,850/6250.40 = 0.295

If you were earning rental income from your property, you would add this to your gross monthly income. If you paid down a student loan or canceled a credit card, this would come off your back-end DTI. 

Learn More: Need help with a rental home? Discover Belong PRO, the best alternative to Property Management in Seattle, Redmond, Oakland, and many more cities across California, Florida and Washington State.

What is a good debt-to-income ratio for a rental property?

If you want to buy an investment property for the rental market, you’ll need a favorable debt-to-income ratio. A ‘good’ DTI vs ‘bad’ DTI depends on many factors, including:

Most lenders prefer a debt-to-income ratio of 36% or less. Others may accept up to 50%, depending on the above factors. 

If you’re buying a home for the sole purpose of having a long-term rental, the potential to add rental income to your gross income may also come into play. Again, whether this will be considered as part of your DTI depends on the lender you’re working with. But there are ways to make this process easier.

If the home you intend to buy is already a rental home, try to get a copy of the existing lease agreement or rental history. Some lenders will apply 75% of the lease agreement as rental income to your total gross monthly income as a projection. 

If the home has never been rented before, or you are buying it vacant, some lenders will use the home’s appraised value to calculate the 75% as gross monthly income. It’s worth having this discussion with your chosen lender to look at your options. 

Don’t forget that you will also have to account for the home's operating expenses such as the mortgage, property taxes, insurance premiums and any HOA fees. 

How can I lower my debt-to-income ratio to buy a rental home?

Having a high debt-to-income ratio can affect you in a few ways. It will make it harder for you to make repayments and also work against you when it comes to finding a low interest rate with your preferred lender. While some lenders accept higher DTIs, they may also charge more for these loans. 

If your current DTI is too high to apply for an investment property, here are four ways to reduce your debt-to-income ratio:

The down payment will affect your ongoing mortgage repayments, so if your DTI is too high, it could pay to wait until you have a larger deposit. Draw up a household budget and look at where you could cut expenses to focus more cash on your down payment. Don’t refocus any of the money you make on repaying credit, because you want your debt to lower too. 

Instead of adding to your downpayment, you could also focus on reducing your high interest debts such as credit cards and loans. Smaller loans such as car loans or credit cards often have higher interest rates and repayments than student loans. Paying these will lower your back-end DTI and improve your ratio. You could also look at consolidating your debt or lowering your credit card interest by shopping around for a better deal. 

While you’re in the market for a mortgage, avoid the temptation of signing up for another credit card or adding any new debt if you’re consolidating loans. Even if you can afford the repayments or there’s an irresistible sign up deal, the amount can count against. Most lenders will consider the amount you’re approved for as a potential liability. 



Are there any ways you can add to your gross monthly income? Whether it’s asking for a pay rise or taking up a side hustle, any regular income can improve your DTI. If you already own a rental property, you consider ways to increase the value of the home and charge higher rates to improve your cash flow. 

Learn more: Belong helps homeowners optimize their rental income and financial security. See why thousands of US homeowners are ditching outdated Property Management in San Francisco, San Diego, Los Angeles, Tampa, Jacksonville, Concord, Berkeley, Orlando and more.

What is a debt-to-income ratio and how does it affect mortgage lending for buying a rental home? Find out how and why to calculate and reduce your DTI ratio

Melanie Kershaw

Mel Kershaw is a Content Lead at Belong. With an extensive background working with technology companies including Eventbrite and Yelp, she’s always looking for ways to create educational and informative articles that simplifies tech and solves problems for her audience.

Eric Vandekerkhove

Brett Jaffe

Ashleigh Graf

Afton Brazzoni

Lauren Slagter

Eric Vandekerkhove

Brett Jaffe

Ashleigh Graf

Afton Brazzoni

Lauren Slagter