COMMON PROBLEMS WITH PROPERTY MANAGEMENT
Avoid the pitfalls with your rental properties
When you have planned, prepped, scheduled, and organized your business to function like a well-oiled machine, the last thing you need is to be let down by your property management firm. The industry is full of promises about how they can “exceed expectations”, but how do you avoid falling in with a bad crowd when selecting who to manage your properties for you? Here are some of the most common problems that can occur with property management, and some suggestions on how to avoid them.
Poor Communication
Moving into a new place is an exciting, albeit nerve-racking time. Tenants are going to have questions, they are going to be calling, emailing, even writing to you at all hours of the day and night. The best way to get off to a bad start is to use a property management team that fails to respond to these communications. The management team you work with should take the stress out of managing your properties, not add to it. If you don’t want to deal with unanswered calls about your property, constant follow-ups on whether maintenance has been done, and a lack of support throughout the rental process, trust a company like Real Property Management.
Bad or No Tenant Screening
It will be the case with your properties that a handful of your tenants cause the most problems. Even with 75% of your properties leased by tenants who keep things clean, pay on-time, and follow the rules, you could still find yourself overcome with grievances because of the remaining few occupants. Tenant screening is not only important, but it has to be thorough – your property management firm should know to pre-qualify all potential tenants, check their prior rental history, perform employment and credit checks, and ask for references, before signing anything away.
Cutting Corners, Not Costs
The cheapest prices aren’t always the ones that save you the most money. Often, management companies that charge the least will end up making the most costly mistakes, increasing the maintenance costs and even incurring legal fees. In addition, working with smaller property management firms often means you end up paying more than you should for maintenance. Real Property Management has a large footprint in the industry that allows them even bigger discounts and deals, passing the cost savings on to you. When looking at price, weigh up the value of your business in the long term, and find a fairly and openly priced property manager who’ll add to your value, not subtract from it.
Lack of Routine Inspections
The best way to multiply your maintenance costs is to wait until something is broken to fix it. Preventative maintenance, such as new caulking in bathrooms, regular gutter cleaning, and frequent inspections of the property and its fixtures and fittings can save you thousands of dollars in the long term. You want to start your leasing on a good footing, so you need to make sure properties are clean, functional, and safe before handing over the keys. Find a property management company that is willing to put in the time to thoroughly and routinely check all your rental properties, and show your tenants that you are responsible and proactive about making this house their home.
Unclear Accounting
You didn’t start this business because you were skilled in accounting, and it certainly shouldn’t become the main pain point of your daily operations. One common problem with property management companies is that they make their accounting process confusing, complex, or just counter-intuitive to use, and in addition to poor tools with few features, they often spit out formulaic data rather than tailoring the report to the needs of the business owner. When tax time comes around, don’t be the one panicking and paying someone else to pick up the pieces – use a property management company that offers clear, round-the-clock accounting tools.
