6 Pain Points for Property Managers
Property managers have many challenges in their day-to-day life, figuring out the best methods to deal with the common challenges they face is a great way to ensure you and the rest of your team are as successful as possible.
In this blog, we will go over the most common challenges property managers face on a daily basis and a few tips on how to avoid or lessen their burden.
Keeping vacancies to a minimum is key to keeping your costs down and your profits high. Vacancies are a constant in the world of property management, however, keeping things like turnover time to a minimum is a great way to lessen the impact vacancies have on your bottom line. Here are some tips to help keep vacancies and turnover time down:
Prioritize longer leases
If you find a person(s) with a strong track record of being an outstanding tenant, try to lock them in for longer leases of 2 or 3 years.
This will limit the amount of time the property is empty and help you save money by not having to find new tenants every year.
Find out tenant intentions
Before your tenant's lease is up, make sure you talk with them to figure out if they intend on extending their lease or not. This will give you ample time to find a new tenant if your current one says they do not wish to re-sign.
This extra time should allow you to have another tenant set up for when the current one moves out, reducing vacancy time and increasing the profitability of your business.
Pay attention to the market
If your property is overpriced under current market conditions, then it will sit empty for quite some time. Having a thorough understanding of the market your property is in makes sure you list the property for a competitive price and it gets filled quickly.
2. Market Changes
Changes in the market can cause your property to go from a hot commodity to old news quite quickly, and this can have quite a big impact on your profitability. That is why it is important to not hold all your eggs in one basket and invest solely in one type of property.
It is best to diversify your portfolio between condos, multi-residential apartments, and commercial space in order to make sure you are not caught off guard by any sudden changes in the market of a specific asset class.
3. Getting Paid on Time
Not getting paid on time is something that all property managers have to deal with over the course of their careers. Not only does this affect cash flows, but it also means property managers need to spend time hunting down payments from tenants instead of using their time for other matters. Here are a few ways to help you get paid on time:
Offer multiple payment options
Giving your tenants multiple options to pay their rent makes it easier for them to pay you, and thus more likely they get the money to you on time.
Although having strict rules regarding payment seems like the simplest way to get paid and thus the most likely to be successful, this tends to not be the case.
Having multiple payment methods gives your tenants the option to pick the method that best works for them, which directly translates to more tenants paying you on time.
Send payment reminders
Sometimes tenants don't pay their rent on time because they simply forget to do so. Having reminders set to send out to your tenants when their rent is due will help to keep your forgetful tenants from being late with their rent and help you keep your cash flows consistent.
4. Managing Maintenance
Property managers are constantly having to deal with maintenance issues with their properties. They are inevitable, however there are ways to keep your maintenance needs to a minimum and the costs associated with them to a minimum as well.
Not Ignoring the Little Things
Small issues may not seem like a big deal at the time and thus get looked over by many property managers. However that little leak could turn into a major issue if not dealt with quickly. It is important to fix small issues before they become major headaches costing valuable time and money.
Establish Vendor Relationships
Finding a quality vendor and sticking with them will save you a ton of time and money when maintenance issues come up.
Being able to call someone up when a problem arises rather than searching for someone who may or may not do the job right is essential to keeping maintenance costs to a minimum.
Therefore, if you find a vendor that is reliable and does solid work, make sure you maintain a relationship with them so you can call on them in the future when similar issues come up.
5. Screening Tenants
Having a problematic tenant can be a huge headache for a property manager, not to mention expensive. A tenant who doesn't pay their rent on time or who causes excessive damage to the property can have a serious impact on your bottom line.
In order to avoid problem tenants, make sure to properly screen any potential tenants before they sign the lease. This includes a background check, requesting references from previous landlords or employers, and a credit check.
Making sure potential tenants pass all these checks with flying colours will help keep problem tenants to a minimum and keep you in the green.
6. Tenant Retention
Just like having longer leases with your tenants helps the bottom line, having them renew their leases when they do eventually run out is just as important.
Keeping your tenants for multiple years basically boils down to keeping them happy. If your tenants are happy with their place and the way it is managed then you give them less motivation to look elsewhere. Here are a few ways to stay on your tenants good side:
It is important to keep an open line of communication with your tenants so they always know where to reach you in the event any issues come up.
It also helps establish and maintain a good relationship with your tenants, which can help with everything from getting paid on time to retention.
Fix Problems Fast
Getting to things like maintenance requests quickly can make a huge difference in the happiness of your tenants.
If you take a long time to get things done, or don't get them done right the first time, your tenant may become upset. Hence why it is important to stay on top of maintenance issues and make sure they get done right the first time.