A small property manager about to enter into a contract with a new apartment building owner should look for warning signs that may indicate trouble ahead. A poor relationship with a new owner can lead to high stress levels, potential burn-out, fear, job dissatisfaction and, in extreme cases, higher incidences of litigation.

There are many signs to watch for, however, four seem to stand out as major indicators of turbulence to come. They are by no means comprehensive and the presence of one does not mean property managers should expect problems in all cases.

1. The property is in poor condition.
This one is obvious, especially if the owner has had the property for a long time. A property in poor condition attracts bad tenants. If a property manager is unable to attract good tenants, it will only lead to conflict. The potential of litigation is heightened with the risk of injury to the tenant, their visitors and the potential of damage to the tenant’s property. Don’t be fooled if the owner promises to repair the property at some point. If it hasn’t done so by now, it likely never will. A property in poor condition reflects a poor attitude and that can be one of the hardest things to change.

 2. The former property manager is being sued.
If the owner has severed ties with another property manager, inquire about that relationship. If the owner says, “I am in the midst of suing my former property manager,” this might indicate a litigious attitude that could land the new property manager into a courtroom too. Find out if the previous property manager’s actions were, in fact, negligent and warranted legal steps being taken. If not, then reconsider proceeding any further.

3. The owner has unreasonable expectations.
Don’t be fooled if the owner has expectations that are too high. Someone too picky and immaculate might be unreasonable to work with. Discuss expectations up front. If the owner seems intolerant to all marks, stains, smudges and day-to-day wear and tear, even after being educated on the facts of rental living, reconsider managing the property.

4. Unfair conditions have been added to the agreement.
When it comes time to sign the contract, discuss expectations. If the owner chooses to be left with the management agreement – for it to be returned once it has “gone over it with a fine-tooth comb” – it is best to not sign the agreement until it is returned. The agreement is not contractually bound until both parties have signed it and either can always pull out if need be.

Darren Hunter has more than 20 years of property management experience. He is a national and international property management trainer, speaker and consultant that has spoken at industry conferences across Australia, New Zealand and the U.S.