Managing rental properties requires several skills including people, organization, resource management, cost reduction, and profit improvement. Property managers need to master these to be successful. In this article, we discuss some of the common challenges encountered in the property management business and how to address them.
Dealing with several properties and people is a challenge. Frequently something breaks and needs to be addressed immediately. There's also preventive maintenance that has to be budgeted and scheduled. Finding and managing tenants is a mixed bag. Some tenants are great, while others aren't. There's always something and hence the need for a property manager. Let's look at the common challenges and solutions to address them.
The success of any business is determined by the team that runs the business. Customer service, proactive, and get-it-done attitude are what separates a great business from a good one. Hiring quality staff that will stay with you for the long run is a key challenge for the business. Who wants to work with difficult people anyways? You are spending a lot of your waking hours in the job - make it fun.
Regardless of the property type, all kinds of structures require ongoing maintenance. Most property managers have to undergo maintenance work as a part of their job at one time or the other. This is the second biggest challenge of the job.
By ignoring minor maintenance issues, a property can quickly deteriorate. Therefore, these issues need to be addressed. Also, prevent them from happening in the first place by using good quality construction material and contractors who take pride in their work. Otherwise, it's a leaky bucket. Read about property class here and see how it impacts your profits.
Handling tenant complaints##
It can be frustrating to deal with unhappy tenants. When you handle multiple properties, complaints can come daily, but you need to deal with them professionally. The range of the issues can vary from complaints about parking violations to major issues like a burst pipe. You can monitor most issues remotely using technology and stay on top of things.
If you overlook the complaints, they might lead to a bad reputation for the property. The tenant may choose to not renew their lease. Tenant turnover impacts the profitability of the business. If the house is not habitable, the tenant can withhold rent. Your landlord hired you to address these issues. As a property manager, you want to address these issues properly so that your landlord sees the value you bring. Excellent communication is a key quality of a successful property manager. Deal with the tenants in such a way that the person feels heard and understands that efforts are being made to resolve the problems.
Rent collection can be a challenge for property managers. No matter how thorough you are during tenant screening, there can be instances of late payments, and even worse, missed payment. We recommend setting up auto payment to reduce the occurrence of this. Collect rent automatically using HomeKasa. You can send reminders in advance of the due date and also send past due notifications.
By including a late payment clause in your lease agreement, you can charge fines for late or missed payments - this will automatically encourage tenants to pay their due amount on time in the future.
If you are lenient with your tenants on missed or delayed payments, you may be setting a precedent for future violations and that can work against you in some states. If the tenant is constantly late or is not taking good care of the house, then eviction must be considered.
While situations like Covid-19 have caused job loss of many, they have also impacted the rental income. This has a domino effect on landlords who rely on the rental income to pay their mortgage and property managers. Under extraordinary circumstances like this, act with empathy.
You will be juggling several tasks every day as a property manager. If you want to differentiate yourself in property management, you will need smart solutions, like the ones offered by HomeKasa. Increase your productivity by setting goals for yourself and devising mechanisms for achieving them smartly.
Tenants can move for a variety of reasons. However, when many tenants leave the property, it could point to a systemic problem with the management. Every leaving tenant and onboarding a new one brings a host of challenges. There are thorough inspections involved, renovations, replacements, and cleaning, all of which add to the operating expenses. Further, until a replacement tenant is found, the topline is impacted. If the landlord doesn't make a profit on the rental property, it's hard for them to afford a property manager.
Address any issues as they arise. Keep track of all communications with the tenant. To make the process easier, the best solution is to automate the processes as much as you can. Also, look for reliable suppliers and third party businesses that you can consult every time you need a repair or cleaning job done. The repetitive business may get you some discounts and save you the hassle of explaining your requirements each time. You can handle all this with HomeKasa, the best property management software.
Most tenants expect that as a property manager, you should be available for them around the clock. Be it lost keys or a leaking sink, the first person a tenant is going to call in the instance of trouble is the property manager. However, property managers have a life of their own and cannot manage to be there for the tenants 24/7.
With the shift towards smart keys, you can reduce the time spent on key replacements. Also, brief every tenant about what to do in case of emergencies. You can add this to HomeKasa so that they can readily access when they need this information. Also, it is best to set their expectations by letting them know your availability hours in advance. This will avoid any disappointments. Choose reasonable working hours and also guide them regarding an alternative option if they are unable to reach you for seeking a solution for a time-sensitive matter.
To sum up##
Property management brings both expected as well as unexpected challenges. Think proactively and address problems before they become a major issue. By taking care of the property well and staying ahead of the challenges, your property management business can grow. Use HomeKasa to keep things organized and run your business without missing a beat. HomeKasa offers the best property management software to manage all tenant interactions.