A property manager has the task of running a real estate property effectively and efficiently. The position requires wearing many hats and can be rewarding and challenging at the same time, due to the nature of the job. Below are some common problems faced by a typical property manager and strategies for solving them.
Rent Collection
The timely collection of rent will ensure that all bills – taxes, fees, salaries, invoices are paid promptly. When rents are not paid on time or not paid at all, the property faces financial insecurity, and the cash flow is disrupted. This can affect the day-to-day operations of the business.
Solutions:
- Make clear rent collection policies to all tenants, especially new tenants, outlining penalties and consequences for late payments or non-payment.
- Screen tenants properly, ensuring that responsible tenants with good references and financial stability are allowed to rent.
- Implement an online rent payment system so that rents are paid on the due date.
- Do a thorough background check as it will leave less room for error. Doing a check on the prospective tenant’s rental history, credit history and verifying employment, will give a clear picture about the applicant and prevent any future issues.
- Contact the applicant’s previous landlords and personal references to get additional insights.
- Ensure the company has a readily available comprehensive list of screening criteria resulting in a thorough and fair screening process.
- Create a regular maintenance schedule for the property’s key equipment and structures.
- Act quickly and decisively on any maintenance and repair issues to prevent them from getting out of hand.
- Do routine inspections throughout the property to identify problems and potential problems.
- Use reliable staff (if doing in house maintenance and repairs) or contractors and service providers (if outsourcing). When outsourcing, ensure a quick and timely response is done at a reasonable cost.
- Have a legal resource either in person or on-line who can help clarify any potential issues or consult on a particular issue.
- Keep proper documentation of all records, communication and transactions, so if a contentious issue does arise, the events leading to it are well documented.
- Tenants may leave due to poor living conditions, so it is important to maintain and update the property.
- Communicate with tenants on a regular basis, especially if there are resolvable issues is important.
- Ensure the rents are in line with the market.
- Provide incentives to tenants (especially those in good standing), to stay longer.