SOLUTIONS TO PROPERTY MANAGEMENT PROBLEMS
Property management can be a challenging business. Nevertheless, it is still a service-based industry and your property manager must always have your best interest in mind. Though you want maintenance that exceeds the industry standards but it is important to recognize when, what may or may not be outside of a property manager’s control. When things go wrong, you want a manager that is always on point to give solution to any problem that arises!
Below are some common property management problems and solution tips:
- Rents below Market Rates: Rents are the largest income stream for many real estate investors. Your rents should be on par with current market rates in order to maximize your potential income. You can also call other property managers in the area and ask them their opinion on the home.
- Unknown/Hidden Fees: Hidden fees are problems in many industries, when your investments are on the line, hidden fees are much harder to absorb. Therefore, note that before you sign a property management contract make sure you have read it, understand it and ask questions to clarify anything you do not understand.Your prospective manager should be up-front with their pricing and not hesitant to discuss it with you so as to avoid issues.
- Diverse Information from the Company: Do you talk to a different person every time you call the management office? Are you getting different answers to the same question? Do you have more questions now than you did when you picked up the phone in the first place? However, staff turnover and over-staffing is a common problem with property management companies. Ask your management company about the staff you will be dealing with once you sign up and the stability of the staff because the business relationship might go a long way and it requires continuity with the same personality.
- Poor Reporting/Communication: Prompt and smart communication is ideal and non-communication is a deal-breaker. Your manager should be communicating with you regularly. And they should be fully comfortable with all modes of communication available. You don’t want them constantly hiding behind an auto-attendant or administrative assistant. Their reports should be steadily delivered monthly and your questions answered clearly and quickly.
- Expensive Environ: We have many elements that drives the cost of property management in a given region. Among these are:
- The quality of the housing
- The location of the home
- The current rental and housing market
- Local manager competition
- The anticipated monthly rent of your home.
Understanding all of the above will help you negotiate properly with a property manager. Note: A “needy” home is more expensive to manage.
- High Maintenance Costs: Maintenance can be handled in two primary ways, (i) –In-house staff or (ii) trusted vendors. Each style has its experts and convicts. Ask your property manager to describe their maintenance system. Ask what their typical costs are to provide solution the most common problems in maintaining your property.
- Routine Inspections: Inspections are core task of owning rental properties and should be done regularly. If a manager does not provide routine inspections they may be understaffed and incapable of servicing their clients properly. The best way to find out how inspections are handled is to find someone who is currently in charge of your property and ask them.
- Accepting Bad Tenant: Accepting a bad tenant is one of the most expensive mistakes a person can make in real estate.Due diligence and upfront work of an intense background check is paramount. Despite strict screening criteria, some tenants just fall on hard times. This state is not something that can be screened upfront. If you are experiencing a bad tenant find out what went wrong. Is the manager negligent or is something else going on outside of their control?
If you have never hired a property manager for fear of having one or more of these problems, use this list as a guide when you interview potential managers. It will give you a strong start in the process. The managers you interview will know you are serious about property management!
We have criteria and the ability to manage your property with prompt and proper communication, routine inspections, tenant’s due diligence/investigation, steady staffing and so on, ability to deliver promptly is part of our aim and objective; we can help you come off having nightmares over your properties even when you trust us with one.
Adeniji Adele and Associates, Estate Surveyors, Valuers and Consultant, located at 19, Campbell Street, Lagos Island. We have been in business for over 20 years with vibrant team of extensive experience. You can reach us on the following contacts: 08091290611, 08066295770, 08051709024, 08033238404
Trust us with a property today! And you will trust us with more tomorrow.