I’ll never forget the call I got three years ago.
A property owner — let’s call him Mike — had been self-managing his rental property for two years. He was proud of the money he was saving on management fees. Until he wasn’t.
“David, I think I messed up. Bad.”
Mike had accepted a tenant who seemed perfect on paper. Great job, nice family, passed the credit check. But he’d skipped a few steps in his screening process. Steps that would have revealed some critical red flags.
Six months later, that tenant stopped paying rent. The eviction process took four months because Mike didn’t follow the proper legal procedures the first time. By the time he finally got the tenant out, he was facing:
- $6,000 in lost rent
- $2,800 in property damage
- $1,500 in legal fees
- $800 in turnover costs Total cost: $11,100 All to save $1,200 per year in management fees.
This is the story nobody tells you about DIY property management. One mistake can wipe out years of “savings” in a single month.
Let me show you the most common — and most expensive — mistakes DIY landlords make, and how to avoid them.
Mistake #1: Accepting the Wrong Tenant ($5,000-$15,000)
This is the big one. The mistake that costs more than any other. How It Happens
You’re excited to fill your vacancy. A prospect applies, and they seem great: – They have a job – They’re friendly and polite – They say all the right things – Their credit score is “okay”
You want to believe them. You need that rent check. So you skip a step or two in the screening process.
Maybe you don’t call all their references. Maybe you accept 2.5x rent income instead of 3x. Maybe you don’t dig deep enough into their rental history.
Then reality hits.
The Real Cost
When you accept the wrong tenant, here’s what you’re facing:
Lost rent during occupancy: $3,000-$8,000 (3-6 months of non-payment before eviction is complete)
Property damage: $1,000-$5,000 (Holes in walls, carpet replacement, appliance damage, cleaning)
Legal and court fees: $500-$2,000 (Filing fees, attorney costs, missed work for court appearances)
Lost rent during turnover: $1,000-$3,000 (Time to repair and re-rent the property)
Total: $5,500-$18,000 per bad tenant
Our Screening Process (That Prevents This)
At Simply Live, we’ve refined our tenant screening over 19 years and 158 properties. Here’s what we require:
✅ Background check (criminal history, eviction history)
✅ Credit report (minimum score requirements, debt-to-income ratio)
✅ Income verification (3x monthly rent minimum, paystubs, employment verification)
✅ Rental history (we call previous landlords, not just current ones)
✅ References (personal and professional, and we actually call them) We also know the red flags: – Current landlord gives glowing review (they might just want them gone) – Gaps in rental history – Multiple recent moves – Defensive or evasive answers – Pressure to skip steps or rush the process Our result: 80%+ client retention for over 7 years, with minimal evictions.
The lesson: Spending an extra 2-3 hours on thorough screening can save you $10,000+ in headaches.
Mistake #2: Botching the Eviction Process ($3,000-$8,000)
Even with good screening, sometimes you need to evict a tenant. And this is where DIY landlords make expensive mistakes.
How It Happens
Your tenant stops paying rent. You try to work it out, but nothing changes. So you decide to evict.
But eviction laws are complex. Miss one step, fill out one form incorrectly, or violate one tenant right, and you’re starting over from scratch.
Common Eviction Mistakes
Filing paperwork incorrectly: Start the entire process over (+30-60 days) Not following proper notice procedures: Case dismissed, start over (+30-60 days) Accepting partial payment: Resets the eviction timeline (+30 days) Violating tenant rights: Potential lawsuit, damages, attorney fees ($5,000-$20,000) Illegal lockout or utility shutoff: Major lawsuit territory ($10,000-$50,000+)
The Real Cost
Extended timeline: Every extra month = another month of lost rent ($1,000-$2,000) Legal fees if you mess up: $1,500-$5,000 Potential damages if you violate tenant rights: $5,000-$50,000 Total: $3,000-$8,000+ for a botched eviction Our Approach
We follow Michigan eviction law to the letter: – Rent due on the 1st – Late fee applied immediately after – Court paperwork filed by the 10th if unpaid – No grace period, no exceptions – Professional process servers – Experienced legal team on standby
We’ve done this hundreds of times. We know exactly what to do, when to do it, and how to document everything.
The lesson: Eviction is a legal process, not a negotiation. One mistake costs thousands.
Mistake #3: Delaying Maintenance ($2,000-$10,000)
This one sneaks up on DIY landlords. A small issue becomes a big problem because you didn’t act fast enough.
How It Happens
A tenant reports a small leak. You’re busy. It doesn’t seem urgent. You’ll get to it next week.
Next week becomes next month. That small leak becomes water damage. Water damage becomes mold. Mold becomes a health hazard and a legal liability.
Real Examples I’ve Seen
Small roof leak ignored:
- Initial repair cost: $300 – Actual cost after delay: $4,500 (water damage, ceiling repair, mold remediation)
Slow drain dismissed:
- Initial fix: $150 – Actual cost: $2,800 (main line backup, flooded basement, emergency cleanup)
HVAC making noise:
- Initial service call: $200 – Actual cost: $3,500 (complete system replacement after failure)
Minor foundation crack:
- Initial repair: $800 – Actual cost: $8,500 (major structural repair after water intrusion) Why DIY Landlords Delay
- They don’t know what’s urgent vs. what can wait
- They’re trying to save money
- They’re too busy with their day job
- They don’t have trusted contractors on speed dial
- They hope the problem will go away
It never goes away. It only gets more expensive.
Our Maintenance Philosophy
We respond to maintenance requests within 24 hours. Our definition of emergency is clear: flood, fire, or life-threatening. Everything else gets scheduled within 7 days.
We handle 95% of maintenance in-house with our trained team. We know which issues are urgent and which can wait. We’ve seen every problem a hundred times.
Our average work order volume: 52 per month across 158 properties. We know maintenance.
The lesson: A $200 repair today beats a $2,000 emergency tomorrow.
Mistake #4: Violating Fair Housing Laws ($10,000-$100,000+)
This is the mistake that can end your real estate investing career.
How It Happens
You don’t mean to discriminate. But Fair Housing laws are complex, and innocentsounding questions or preferences can land you in serious legal trouble.
Illegal Questions/Actions (That Seem Innocent)
❌ “Do you have kids?” (Familial status discrimination)
❌ “Are you married?” (Familial status discrimination)
❌ “Where are you from?” (National origin discrimination)
❌ “Do you go to church around here?” (Religion discrimination)
❌ “This neighborhood is perfect for young professionals.” (Age discrimination)
❌ Refusing service animals or ESAs (Disability discrimination)
❌ Different application standards for different applicants (Any protected class)
The Real Cost
HUD complaint investigation: $5,000-$15,000 in legal fees, settlement and/or damages: $10,000-$50,000, typical range
Punitive damages in severe cases: $100,000+ Reputation damage: Priceless (and permanent)
Our Training
Every member of our team is trained in Fair Housing law. We know: – What questions we can and cannot ask – How to apply consistent screening criteria – How to document everything properly – How to handle service animals and ESAs – How to avoid even the appearance of discrimination
The lesson: You can’t afford to learn Fair Housing law through a lawsuit.
Mistake #5: Poor Lease Agreements ($2,000-$5,000)
Your lease is your legal protection. A weak lease leaves you exposed.
Common Lease Mistakes
Vague or missing terms:
- Who pays utilities? – What’s the pet policy? – What’s considered normal wear and tear?
- When is rent considered late?
Illegal clauses:
- Waiving tenant rights – Excessive fees – Automatic renewal without proper notice
Outdated language:
- Doesn’t reflect current Michigan law – Missing required disclosures – No clear eviction procedures The Real Cost
When disputes arise, a weak lease means: – You can’t enforce terms that aren’t clearly written – You might have to eat costs you thought were covered – You’re vulnerable in court – You waste time and money on preventable conflicts
Average cost of lease-related disputes: $2,000-$5,000 in legal fees and lost rent
Our Lease Agreement
Our leases are: – Reviewed by attorneys – Updated regularly for Michigan law changes Crystal clear on all terms and expectations – Consistent across all properties – Stored and managed in AppFolio for easy access
The lesson: Your lease is your first line of defense. Make it bulletproof.
Mistake #6: Underestimating Vacancy Costs ($1,500-$4,000)
Every day a property sits vacant costs you money. DIY landlords often underestimate how long it takes to fill a vacancy.
The DIY Timeline
- Week 1-2: Realize tenant is leaving, schedule move-out
- Week 3-4: Clean and repair property
- Week 5-6: Take photos, write listing, post ads
- Week 7-8: Field calls, schedule showings
- Week 9-10: Process applications, run screening
- Week 11-12: Prepare lease, schedule move-in
Total: 60-90 days average
The Cost
60 days vacant on a $1,000/month rental = $2,000 lost rent
Plus: – Utilities you’re paying: $200-$400 – Marketing costs: $100-$300 – Your time: 20-30 hours
Total vacancy cost: $2,300-$2,700
Our Process
We know a tenant is leaving 60 days in advance (proper lease management). We start marketing immediately. Our systems are dialed in:
- Professional photos and listings ready in 24 hours
- Zillow, Facebook, and Google marketing automated
- Showings scheduled efficiently
- Applications processed same-day
- Properties turned in 2 weeks or less
- Vacancies filled in 30 days or less
Our vacancy rate: Under 2% The lesson: Speed matters. Every week of vacancy is $250+ out of your pocket.
The Real Cost of DIY: Adding It All Up
Let’s say you own three rental properties and self-manage for five years.
If you make just TWO of these mistakes over five years:
- One bad tenant: $10,000
- One botched eviction: $5,000
- One delayed maintenance issue: $3,000
- Extended vacancies: $2,000
Total: $20,000 in preventable losses Professional management for 3 properties over 5 years:
$3,600/year × 5 years = $18,000 You spent more money on mistakes than you would have spent on professional management.
And that doesn’t account for: – Your time (300-600 hours per year) – Your stress (24/7 on-call) – Your opportunity cost (what else could you have built?)
The Question You Need to Ask
“Am I willing to risk a $10,000 mistake to save $1,200 per year?”
Because that’s the real math of DIY property management.
You’re not just saving money. You’re taking on risk: – Legal risk – Financial risk – Time risk – Stress risk
When DIY Makes Sense
I’ll be honest: DIY might make sense if: – You own ONE property – You have property management experience – You have time and maintenance skills – You’re willing to learn the legal requirements – You can afford the mistakes while you learn
When Professional Management Makes Sense
Professional management makes sense if: – You own multiple properties – You have a full-time job or business – You want to scale your portfolio – You value your time and peace of mind – You’d rather invest in growth than risk management
How We Prevent These Mistakes
At Simply Live, we’ve been doing this for 19 years. We’ve made mistakes so you don’t have to.
Our track record: – 158 properties managed – 80%+ client retention for over 7 years Under 2% vacancy rate – 30 days or less to fill vacancies – 2 weeks or less for property turnovers – Minimal evictions (because we screen properly)
Our approach: – Rigorous tenant screening (3x rent income, background checks, references) – Legal compliance (Fair Housing, Michigan landlord-tenant law) – Fast maintenance response (95% in-house, 24-hour response time) – Professional systems (AppFolio, automated processes) – Transparent pricing (our cost is your cost, 10% management fee) – Month-to-month contracts (no long-term commitment)
You’re not just paying for property management. You’re paying for risk mitigation.
Ready to Stop Risking $10,000 Mistakes?
If you’re tired of the stress, the risk, and the costly mistakes of DIY property management, let’s talk.
Free 20-minute consultation: We’ll discuss your properties, your challenges, and whether professional management makes sense for you. No pressure, no obligations just honest advice from someone who’s seen it all.
We serve rental property owners in the Lansing tri-county area. Our average client owns five properties, but we work with everyone from first-time landlords to investors with 100+ units.
The choice is yours: – Keep rolling the dice with DIY – Or partner with professionals who’ve been doing this for 19 years
One bad tenant costs more than six years of professional management.
Don’t learn that lesson the hard way.
Let’s talk.
Simply Live LLC | Lansing Tri-County Property Management Phone: 517.258.0349 | Serving rental property owners in Michigan’s tri-county area for 19 years
Recent Comments