Residential Property Management – 6 Challenges Facing Property Managers
If only life for a residential property manager was as simple as just collecting rent on time! If it was that simple, then many property owners would do it themselves. But this is not so, and a professional residential property manager has to deal with a wide range of problems and challenges, which are outlined below.
Finding, managing, and retaining tenants A difficult task for any property manager is finding new tenants and ensuring that they are the right fit for the property. The ideal tenant pays rent on time, stays for a long period of time, and has minimal maintenance requests.
Outsourcing marketing strategies for new tenants can use up valuable budget dollars, so an inhouse marketing strategy is usually the norm. However, this requires time and experience helps. Once a tenant has been accepted, if he or she turns out to be a difficult one by delaying on rent payments for instance, the eviction process can be time consuming and expensive.
Managing time Property managers find that there is never enough time in the day to complete their tasks. Screening tenants, doing background checks, following up on maintenance requests, handling emergency phone calls from tenants, dealing with problem tenants, collecting rent arrears etc. can be stressful and result in long hours being spent managing these tasks.
There are software packages available on the market that help a property manager keep abreast of these tasks and enable the smooth day to day operations.
Property maintenance At any given time, a property manager can face a myriad of maintenance tasks. Many are part of the routine day to day or monthly functions, and others can be a spur of the moment emergency call, such as a broken pipe in a tenant’s apartment. A property manager has to be well versed in dealing with all sorts of maintenance requests and have the know-how on whether to call for outside help or solve the problem in house.
Increasing the ROI Any property investor requires a decent ROI (return on investment). It behooves the residential property manager to ensure that the rents are collected in full and on time, and costs are kept to a minimum. While there are some very useful software programs available that a property manager can use in the operations of the property, residential property managers seldom find a one size fits all package.
Older properties may require a higher maintenance budget and may attract a different breed of renters. There are many factors outside the control of the property manager, the neighborhood and location being important ones.
Dealing with owners While it may be easy for a property manager to hand pick and manage tenants, a manager cannot apply the same with the owners. Some owners may have a laissez-faire style of ownership, giving the property manager a certain amount of independence to make decisions. Others may be more hands on and be more demanding. This can be very stressful especially with owners who require a high ROI from their investment.
Knowledge of rules By virtue of his/her job, a residential property manager must have a comprehensive understanding of the laws regarding tenancy and property ownership. It is important to note that the legislative environment of the real estate industry keeps changing with ever evolving new rules and regulations. Any mistake on an interpretation of the rules or a lack of awareness can prove to be costly for the property owner.
The Virani RENT + MANAGE is a division dedicated to rental and property management created to provide clients with a full spectrum of services related to their real estate needs. We help our clients with all aspects of the management of their rental properties. To find out more, visit our comprehensive property management services page.