The $250,000 Bonus Check, That Almost Killed a Deal:

I once worked a due diligence + transition on two solid storage facilities.
Classic setup.

Out-of-state owner.
Long-time property manager running everything day-to-day.

The sites were getting sold… and the manager wasn’t happy about it.

So he made himself a parting gift.
He was bonused on revenue.

Last month before closing, he rolled out:
“Pay 4 months, get 6 months free.”
Blasted it to the entire tenant base.

Tenants loved it.
Revenue spiked.

His bonus jumped from a few thousand to nearly ten thousand that month.

And just like that…

The next owner inherited a property that wouldn’t generate and real revenue for a year.

That one move forced a price adjustment close to $250,000 just to keep the deal alive.

All because one operator knew exactly how to game the system on his way out.

This is why due diligence isn’t just financial.

It’s operational.
It's incentives.

It controls who actually has their hands on the wheel day-to-day.

If you don’t understand that piece, you’re not buying a deal…
You’re inheriting someone else’s problems.

I’ve seen versions of this more than once.

It’s why I always tell people:
If operations isn’t your lane, bring someone in who lives there.

A small investment on the front end can save you a very expensive lesson later.