Any real estate investor is usually assured of comfortable profits come the end of the month. In fact, the freedom that comes with owning several residential houses and apartment buildings is arguably bigger than owning any other business. This is because one does not have to work extra hard to attain his/her objectives. Actually, s/he can make money while literally sleeping. However, rental property management comes with its fair share of challenges.
Common Issues in Rental Property Management
Tenants Paying Late
The issue of tenants paying their rent late or avoiding to pay completely is common in rental property management. While a property is a business, it should have timely returns on investments. Whether the reasons for late payment are genuine or questionable, landlords should draft and enforce firm regulations.
Alternatively, an owner can hire a rental property management company to deal with the stress on his/her behalf. There are innumerable cases where tenants mistakenly think that the rent deposit will pay for their final month of occupancy. While this is generally the case, the rent deposit can act as compensation for damaged appliances and cost of repainting the house.
This is perhaps the number one issue in rental property management. It is the property manager’s responsibility to handle repair issues such as clogged drains. One of the remedies is to instruct tenants to avoid pouring greasy substances down the drain. An expert in rental property management will plan for periodic pouring of boiling water down the drain to wash off solidified fat from foods. Additionally, the drains should have a strainer to prevent solid matter from becoming trapped in the pipes.
Violation of Regulations
Dealing with a number of people from different backgrounds is in itself an issue. There are those who will follow the set rules while others will do the opposite. In fact, some tenants such as college students, will remove the notice boards on which regulations and warnings are printed and displayed.
From loud music, drinking and smoking inside the building to the improper use of shared facilities, violation of rules is the order of the day. Hiring a tough rental property management company to deal with these violations and check in for compliance could be a solution.
While a rental property management expert can decide who rents a house within his/her premises, s/he does not have much control over pests infesting the apartment. Insects like lice, mosquitoes, and houseflies often show up, leaving a property undesirable for prospective tenants. Others pests include squirrels and mice.
To mitigate the problem of pests infestation, landlords should spray pesticides at regular intervals, preferably between tenant occupancy.
Any landlord strives to make his/her property attractive to would-be tenants. However, s/he may not have control over factors in the neighborhood. A dumping site located near an apartment building, for example, could keep tenants away. Ugly and poorly maintained houses or unkempt fields are also deterrents.
To deal with the problem, owners of residential properties can form associations to pressure the local government councils to relocate dumping sites and to persuade owners of ugly buildings and unkempt fields to manage them better. If these fail, a proprietor can install opaque window fittings such as shutters and stained glass on the lower parts of windows. This allows ample light and sunshine to penetrate the house while obstructing the view of eyesores outside.
Other common issues in rental property management include:
Failure of heating, ventilation, and air-conditioning (HVAC) appliances
Intermittent power outages
Interruption of water supply
Challenges to proper sewage management
Lack of knowledge in proper rental property management
See the list of Son-Rise rental properties here.