Property management is an exciting field that presents endless possibilities. However, whether you are just starting out as a property manager or enjoy an established career managing real estate, there are some common problems everyone will encounter.
Below, the Labrada Group experts explore some of the most common challenges faced by today’s property managers and what to do about them.
Handling Bad Tenants
Property managers see tenants on a daily basis. Unfortunately, this means property managers are also responsible for managing bad tenants–those who don’t pay rent on time or at all or those that trash the property. Security deposits exist to offset some of these unforeseeable costs, but they are seldom enough to cover the challenges that irresponsible or cash-strapped tenants might present.
The key to dealing with bad tenants is simple: avoid them through a rigorous screening process.
- Run credit and background checks on all tenants before signing an agreement.
- You should also call previous landlords for referrals.
Whether you are managing short-term or long-term rentals, direct bookings affect your return on investment. The more booking you can secure, the better the rental profits at year-end. That’s why getting more bookings remains one of the most important tasks for a property manager.
Fortunately, there are several online platforms to help property owners and managers invite the right kind of tenants to consider their properties. However, the key is not to find the right platform but to maximize bookings by utilizing online platforms as much as possible.
- Use direct booking websites
- Explore social media platforms to find leads
- Update resources like Google My Business to invite more bookings
Even with great tenants, the property will eventually require repairs and replacements. Common property damages include rain, fire, theft, vandalism, and normal wear and tear. That’s why all property managers need to keep a sharp eye on the property’s condition and be ready to make repairs whenever emergencies arise.
Hiring more employees is a possibility but may cut into revenue too much. Other strategies include the following:
- Regular unit maintenance catches issues before they develop into costly repairs
- Safety systems, such as fire alarms and carbon monoxide detectors, reduce harm and risk
- Property insurance should cover the shortfall in an emergency or disaster
Dealing with one property is relatively simple, but property management services across multiple properties can get quite complex. If you own rental properties in different states that you cannot frequently visit, the task might be even more complicated.
Operations and logistics take time and money from property management companies, and the administration can be intense. Fortunately, modern automation tools can drastically reduce the workload and the potential for human error.
For example, consider full-service digital platforms for a single place from which to do the following:
- Manage bookings
- Check maintenance schedules
- Collect payments
Organize documentation for legal and tax purposes and more
Is the pressure on? You may also want to consider professional property management services from The Labrada Group message online or call 909-981-3500 today!