How to Overcome Biggest Property Management Challenges
Owning a property is of a great benefit, especially when it is one of the sources of income, either by renting it out as a dwelling place or business location. However, like most of the businesses, property management also comes with a number of challenges and specifically in its management. Whether you are a landlord or a property manager, there are some challenges that every manager faces. And some very practical property management solutions to overcome these challenges are as follows.
1. Unexpected Maintenance
Maintenance is an on-going process in the world of property, but unexpected maintenance is never fun and can be quite costly. The best way to avoid the unexpected situation is to first have an amount especially kept to cover these expenses. This can be an emergency fund that can be included in your personal budget. Additionally, creating and implementing a preventing maintenance plan can go a long way in covering these emergencies. Obviously, you can’t plan for every emergency but having reserve cash for these repairs and being diligent with preventive maintenance can certainly help a lot.
2. Tenant Complaints
This is another great challenge that is part of the job. Non-payments or late payments happen and there might be times when the tenant has their own set of unexpected circumstances and needs some cooperation. Ignoring or brushing of the tenant can cause the problem to escalate and in some cases can bring about legal actions.
As a landlord or a property manager realizing that complaints come with the territory will be half the battle. The other half could be devising a written plan on how to handle the issue. If the complaint requires more action then help the tenant fill out a formal complaint.
3. Payment Issues
Collecting rent can be a huge issue. Late payments or non-payments can happen at any time. What a property manager needs is to avoid the habitually late or non-payment of tenants. We can avoid this situation by screening the tenants before they move in. The screening process will certainly help in determining what type of tenants they are. This is where the power of property portals can transform the real estate business. Additionally, having tenant policies in place when dealing with non-payments will be essential, but there are some other ways that can also motivate. Example: You can offer a reduction of the rental fee after the first full year of residency.
4. Property Damage
Damage to the property is very uncertain. Yes, accidents can happen any time and one can expect damage to the property over the course of time.
About this, the property manager can ask the tenant for a certain amount. But if a tenant deliberately damages the property, they are not likely to feel compelled in paying for those damages. This is the reason why the screening process is so important. Knowing about the type of people you are going to rent out your place can be the very first step to avoid this problem. However, some people are not destructive but can be careless and neglectful. In this case, coming up with an agreement with the tenant regarding any damage or neglect may be the best option.
While these challenges are so uncertain, but keeping up a backup plan can always help. Also, these issues can drain quite a lot of money from your pocket. So, it is advised that you screen your tenant, knowing about them, how they live and do they have an assured job, can help you with your property management.
Benefit from our best Property Management Solutions!
If you own a real estate agency owning various properties, you may find it difficult to manage these challenges. At Signity Solutions, our property management solutions can help you in boosting your sales and growing your customers with your value-added offerings.