The property management industry is lucrative and is growing. According to research, the industry might reach $36.4 billion (about $110 per person in the US) by 2028. However, this industry experiences its fair share of challenges that test everyone. As a property owner, the challenges may weigh you down, mainly if you have a busy working schedule and have no time to remain actively engaged with the property. As such, working with an experienced property manager to oversee your property and help you solve everyday challenges is advisable.
This guide discusses the common challenges property managers face and their possible solutions. Keep reading to make informed decisions when hiring a property manager.
1. Tenant Related Problems
Tenant disputes and complaints will always exist, and they can be frustrating. No matter how much you try to please or satisfy the tenant, chances are a few issues will arise, and it’s essential to handle them. Professional property management will expertly handle the complaints as they occur to make the tenants more satisfied and increase the rate of retention.
Solutions
Here are the leading solutions to tenant complaints and disputes:
- Provide an explicit lease agreement outlining the rules and policies the tenets should use wherever there is a problem.
- Listen to the tenants carefully to understand their problems and perspectives.
- Be fair when listening to the tenants and provide solutions without taking sides.
- Be open and honest when dealing with disputes to build trust.
- Address the concerns effectively and within the shortest time possible.
2. Pricing and Rent Collection
Rent collection is vital to property management, but the entire process can be challenging. Property managers should have a good plan for collecting the money in time to avoid causing negative cash flows.
Solutions
The helpful tips below will help avoid common rent collection problems and streamline operations in the property.
- Automate the rent payment systems and ensure they send automatic reminders to tenants when it’s time to pay rent.
- Let the tenants know the ideal time to pay rent. You should communicate this information when a tenant is joining the property.
- Charge penalties for late penalties to discourage delayed rent payments.
- Send ‘pay or quit’ notifications to tenants unwilling to pay on time.
- Keep property records for each tenant payment to lawfully evict those not following set rules.
3. Property Maintenance
Every property requires regular maintenance to spot issues as they arise and solve them before they escalate. Timely maintenance ensures that the tenants are safe and satisfied. It also helps avoid fines and lawsuits that may lead to safety hazards and code violations. However, keeping up with maintenance can be a challenge for property managers, but there are practical solutions to it.
Solutions
Here are standard practices to keep in mind and keep up with the property maintenance standards to keep everyone safe.
- Develop a preventive maintenance program. The program should include all the structural aspects of the property, like plumbing and electrical. Experts will inspect the property regularly to keep everything in check.
- Respond to maintenance requests from tenants promptly.
- Keep track of all the property maintenance expenses.
4. Attracting and Retaining Tenants
Finding the right tenants and attracting them to a property is a common challenge for property managers. Many rental properties are available, increasing the number of options available to tenants. Tenants are always spoiled for options, and it’s the property manager’s role to attract new tenants and maintain them effectively.
Solutions
Priority managers can adhere to the practices below to attract and retain the right tenants in rental properties.
- Offer tenants a warm welcome by introducing them to the neighborhood and recommending the best shopping areas.
- Being responsive to tenants. A property manager should always have an active communication line.
- Respect the tenant’s privacy. A property manager shouldn’t pop into the tenant’s house every time unexpectedly, as this can be a breach of confidentiality.
- Carry out ongoing property improvements to keep up with the market expectations.
- Offer incentives and small discounts to the tenants who stay long.
5. Security and Safety Concerns
Security is another common concern property managers must deal with regularly. Rental properties and apartments are a common target for theft and burglary, and the tenants often fall victim. Property security concerns include vandalism, theft, break-ins, and trespassing.
Solutions
Here are practical solutions to improve security in properties.
- Screen the tenants comprehensively. Tenants with a history of theft or vandalism may increase safety concerns in the property. Ensure you know the criminal history of every tenant who rents the property.
- Install security camera solutions, like CCTVs, in the crucial areas of the property. For instance, you can place the cameras at the main gate and the corridors.
- Install alarm systems to get prompt alerts whenever there is an attempt to steal or vandalize the property.
- Install an access control system to limit the access of tenants or the public to create areas.
- Be fast when attending to security concerns from the tenants and coming up with practical solutions.
Conclusion
Property managers experience many challenges in their line of duty, but practical solutions are always available. Common challenges revolve around security, property maintenance, retaining clients, and collecting rent.
Each challenge’s occurrence is unique, but property managers should proactively identify and solve it in time. The above are the common challenges in property management and possible solutions.
