A real-world case study from the headlines — and what landlords in NC and SC need to know to protect their investment.
📰 Real Case That Made Headlines
In early 2025, a lawsuit filed in Florida made national news. A luxury rental company called Five Star Marketing and Promotions sued then-Miami Heat (now Golden State Warriors) player Jimmy Butler, claiming he stayed in a Miami Beach rental home for two months past his lease expiration in August 2024.
According to a lawsuit filed in the 11th Circuit Court in Florida and covered by CBS Sports, NBC Sports, and CBS Miami, the company alleged Butler owed $260,000 in unpaid rent, left behind more than $127,000 in property damage — including mold, damaged flooring, a broken pool pump, and HVAC issues — and changed the locks without providing a copy to the landlord. Butler had not publicly commented on the lawsuit as of the reporting date. These are allegations in a civil lawsuit and have not been proven in court.
This story teaches every landlord a powerful lesson — no matter the size of your rental property.
In this article
- What can go wrong when you self-manage
- What a property manager actually does
- How a property manager could have helped in this situation
- What property management costs in NC and SC
- NC and SC landlord-tenant law: what you need to know
- How to choose a property manager in the Carolinas
1. What Can Go Wrong When You Self-Manage
Being your own landlord sounds simple. You own the property, you find a tenant, you collect rent. But when things go wrong — and sometimes they do — self-managing landlords often find out too late that they were not protected.
Here are some common problems landlords face without professional help:
- ❌ A tenant stops paying rent and you do not know the right legal steps to get them out
- ❌ A tenant stays past their lease end date (called a "holdover tenant") and you lose months of income
- ❌ Property gets damaged and you did not do move-in and move-out inspections to document it
- ❌ Locks are changed without your knowledge, locking you out of your own property
- ❌ Maintenance issues go unreported until they become very expensive repairs
- ❌ Lease terms do not cover all the situations that can come up
In the news case above, a professional property manager typically would have had a signed inspection report, a clear holdover clause, and a process for responding to access issues — all before any of these problems grew to hundreds of thousands of dollars.
2. What a Property Manager Actually Does
A property management company acts as the expert between you (the owner) and your tenants. Think of them as the day-to-day boss for your rental, while you keep ownership and collect income.
Here is what a good property manager handles for you:
- ✅ Tenant screening — running credit checks, background checks, and verifying rental history and income before anyone signs a lease
- ✅ Lease preparation — writing a lease that covers holdover clauses, lock-change rules, maintenance responsibilities, and more
- ✅ Move-in and move-out inspections — documenting the property's condition with photos and reports so there is no dispute over damage
- ✅ Rent collection — automated collection, late fee enforcement, and early action when rent is missed
- ✅ Maintenance coordination — handling repair calls, scheduling contractors, and keeping records
- ✅ Legal compliance — making sure your lease and your actions as a landlord follow NC and SC state law
- ✅ Eviction management — handling the legal process if a tenant must be removed, including filing paperwork and appearing in court
The NAR (National Association of REALTORS®) Property Management section notes that professional property managers help landlords navigate legal requirements, reduce costly mistakes, and maintain positive landlord-tenant relationships. NAR members who hold the Residential Management Professional (RMP®) or Master Property Manager (MPM®) designation from NARPM have specialized training in these areas.
3. How a Property Manager Could Have Helped
Let's walk through the news story and see exactly where professional property management would have made a difference.
| What Allegedly Happened | What Self-Managing Looks Like | What a Property Manager Does |
|---|---|---|
| Tenant stayed 2 months past lease end | Owner may not act quickly, losing months of income | Lease includes a clear holdover clause; PM sends notice immediately when lease expires without renewal |
| $127,000+ in alleged property damage | Hard to prove what was pre-existing vs. new damage without documentation | Detailed move-in and move-out inspection reports with photos create a clear record for legal action |
| Tenant denied access for HVAC inspection | Owner may not know their legal right of entry or how to enforce it | PM knows NC/SC notice requirements for access and documents every denied entry attempt |
| Locks changed without giving landlord a key | Owner may not know this is typically a lease violation | Lease explicitly prohibits lock changes without PM approval; PM monitors and acts quickly |
This is not about one celebrity. Situations like this — on a smaller scale — happen to everyday landlords in Charlotte, Raleigh, Fayetteville, Columbia, and Greenville every year. The Eviction Lab at Princeton University reports that landlords filed over 1.2 million eviction cases across the country in 2025. Having a professional on your team reduces how often you end up in that situation.
4. What Property Management Costs in NC and SC
Many landlords worry that hiring a property manager will cost too much. But let's look at the real numbers for North and South Carolina.
In North Carolina: The average management fee is about 8.89% of monthly rent, according to iPropertyManagement's survey of NC companies. On a $1,500/month rental, that is about $133 per month — or roughly $1,600 per year.
In South Carolina: The average management fee is about 9.08% of monthly rent — a very similar number. Flat-fee options in SC average about $88.60 per month.
Other typical fees to know about:
- ✅ Tenant placement fee: Usually 50%–100% of one month's rent, charged once when a new tenant is placed
- ✅ Lease renewal fee: About $150–$230 per renewal
- ✅ Eviction assistance fee: About $200–$500 plus court costs in NC
- ✅ Inspection fee: About $50–$150 per inspection in NC; about $76 average in SC
Compare the management fee to what a bad situation can cost. In the news case above, the alleged losses totaled over $387,000 ($260,000 in unpaid rent + $127,000 in damages). Even if a property manager costs $2,000 per year — that is a very small price to protect an asset worth hundreds of thousands of dollars.
Property management fees are also generally tax-deductible as a rental property operating expense. Consult your CPA for guidance on your specific situation.
5. NC and SC Landlord-Tenant Law: What You Need to Know
Both states have clear laws that govern what landlords and tenants can and cannot do. Not knowing these rules is one of the biggest risks for self-managing landlords.
North Carolina: The NC Residential Rental Agreements Act (N.C. Gen. Stat. § 42-1 et seq.) covers lease terms, security deposits, maintenance obligations, and eviction procedures. Security deposits are governed by N.C. Gen. Stat. § 42-50 through § 42-56. Late fees must follow N.C. Gen. Stat. § 42-46. Evictions go through Magistrate Court.
South Carolina: The SC Residential Landlord and Tenant Act (S.C. Code § 27-40-10 et seq.) sets out similar rules. Evictions in SC also go through Magistrate Court. South Carolina requires landlords to give written notice before entering a property for non-emergency repairs.
In both states, changing the locks on a tenant — even one who has not paid rent — without following the proper legal eviction process can expose a landlord to liability. A property manager knows exactly how to handle this legally. A landlord who does it wrong can face court penalties.
The NC REALTORS® and SC REALTORS® associations both offer resources and referrals to help landlords find licensed, compliant property managers in their area.
6. How to Choose a Property Manager in the Carolinas
Not all property managers are the same. Here is what to look for:
- ✅ Licensed in NC or SC — property managers must hold a real estate broker license in both states to manage properties for others
- ✅ Member of NARPM — members follow a strict code of ethics
- ✅ Ask if they carry Errors & Omissions (E&O) insurance
- ✅ Ask to see their lease agreement — it should have clear holdover clauses, access rights, lock-change prohibitions, and inspection terms
- ✅ Ask how they handle missed rent — know their process
- ✅ Get references from other landlords
- ✅ Understand all fees upfront — ask for a full written fee schedule
Cities like Charlotte, Raleigh, Durham, Fayetteville, Columbia, Charleston, and Greenville all have active property management markets with many licensed firms. Your local Board of REALTORS® can provide referrals to vetted, licensed property managers in your market.
The Bottom Line
The story that went around about Jimmy Butler and his Miami Beach rental is a dramatic example of what can go wrong. But the lesson is simple: a professional property manager is not just a convenience — it is protection.
For a few hundred dollars a month, a licensed property manager in North Carolina or South Carolina screens tenants carefully, writes strong leases, documents property conditions, collects rent professionally, and handles legal issues before they become expensive problems.
Whether you own one rental home in Raleigh or a handful of units in Columbia, having a professional in your corner means you can sleep at night — and protect the investment you worked hard to build.
Talk to a licensed property manager or a REALTOR® in your area today to find out what professional management looks like for your property.
