Bad Investments, Bad Investors, and the Truth Behind the Rent Roll

In property management, bad investments do exist—and so do bad investors and bad property managers.

When someone is selling an income-producing property, it’s important to ask why. A sale doesn’t automatically mean the property is a bad investment. But don’t assume it’s a great one just because it’s producing rent today. The owner may be selling because the property isn’t making money, major components are nearing the end of their useful life, or problems are building beneath the surface.

Think of it this way: If you had a winning lottery ticket that paid you every month or every year for the rest of your life, would you give it away? Before buying a property, find out what you’re really getting—and what the seller may be leaving behind.

One of the most important things to examine is the rent roll. If an owner is desperate to sell, the rent roll may not tell the whole story. Some sellers may avoid evicting delinquent residents because occupied units can make the property appear more valuable at closing. A buyer can end up with unpaid rent, legal expenses, and the cost of turning units after gaining possession.

I once worked with an owner who was preparing to sell and closely monitored every detail of the operation. She even had a baby monitor in the office so she could watch the property manager from her own office. At first, she was reluctant to turn over day-to-day operations because she wanted to remain in control.

One day, I noticed a sticky note on the desk with several addresses listed under the heading “ghost tenant.” I asked what it meant, even though I had a pretty good idea. She confirmed that the names were fake and had been placed on the rent roll to make vacant units appear occupied and increase the property’s occupancy before a sale.

I told her I would not participate in keeping up that lie.

That was not the only difference between us. She was also upset when I evicted two residents who were receiving rental assistance but using their own money to buy fentanyl. The residents overdosed together, and their seven-year-old child called 911. I did not want that activity continuing at a property I managed. The owner focused on losing rent she considered guaranteed. I was also thinking about the child, the neighbors, and the safety of the property.

We were not the right fit for each other, and I ended the management contract after 11 months.

That experience reinforced something I’ve learned throughout my career: not every owner and property manager share the same values. If an owner wants a manager to hide vacancies, tolerate unsafe conditions, or put appearances ahead of residents and honest operations, I am not the right manager for that property.

If you want your property turned around, understand that it takes money to make money—and time to reach your goals. A realistic plan may require repairs, better systems, resident accountability, and patience. Responsible management means looking at the property honestly, making sound decisions, and building lasting value.

I’m Sheree Bridges, owner of Turn Key Property Management, a licensed brokerage company in Indiana and Kentucky, and a consulting agency serving clients in all 50 states. If you want honest guidance and a practical plan for your property, I’m ready to help. If you want someone to make the numbers look good by hiding the truth, we are probably not the right company for you.