Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

The real risks of hiring a bad manager

2 Mar 2026 · 1 min

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In this segment, the speaker outlines the major downsides of hiring professional property management. First, the financial cost is significant—management fees typically run 5‑8% of gross revenue or require a large annual salary, directly reducing net operating income. Second, owners lose direct control and visibility, as daily decisions shift to the manager and the owner is no longer the face of the business. Third, the hiring risk is highlighted: a poor manager can quickly damage occupancy rates and tenant relationships, making recovery difficult. Finally, the speaker stresses that ultimate liability remains with the owner; any failures in collections or regulatory compliance by the manager still fall on the owner’s shoulders.

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So while the cost of professional help is the most obvious drawback, as it directly impacts your bottom line because you're likely paying 5 to 8% of your gross revenue or a hefty annual salary, which cuts in your net operating income, you also lose direct control. You're no longer the face of the business and daily decisions are being made by someone else. And the biggest risk is the hiring risk. A bad manager can absolutely destroy your occupancy and tenant relationships faster than you can recover. And remember, you still hold the ultimate liability. So if they mess up collections or compliance, still your problem.