Property managers certainly have a full plate on their hands. Taking on the responsibility of managing all aspects of a real estate investment on behalf of another party is certainly no easy task. From collecting rent to maintaining the property to keep it up to code – the duties that fall on the shoulders of property managers can quickly turn into a nightmare.
Here is a list of 12 common challenges faced by property managers:
- Ever-increasing competition. The pressure mounts. Property managers are challenged to deliver all the amenities one could dream of at a super-cheap price. Ha. Like that’s even possible. See the nightmare unfolding? As more properties are built and existing properties become available, competition is fierce. In order to meet the demand and stay in the race, customer needs and wants need to be considered and every possible effort must be made to meet or exceed these expectations as cost-efficiently as possible.
- Maintaining adequate staff. Property management companies struggle to keep enough staff to meet the needs of their clients without cutting too deeply into the budget. One way to curb the expenses is by using software that streamlines the inspection process. SnapInspect is an application that is proven to save 75% of the time spent on property inspections. And reports? Even more. What used to take days can literally be done in minutes when equipped with the right tools. Implementation of this system is an ideal solution to reduce the amount of manpower needed to run the operation. Genius.
- Rising energy costs. Whether the property is a complex or a single-family dwelling, the continuous rise in energy costs is a very real nightmare for property managers. Proactive maintenance is the best way to offset these prices by ensuring all heating and cooling equipment is efficient and running at its optimal ability. Even if the investment may seem scary, energy-saving equipment such as a furnaces, AC units, etc. – will save money in the long run.
- Creating custom reports. All clients and all properties in the industry are different. Therefore, a one-size-fits-all approach to inspection reports won’t cut it. So whether it’s a due diligence inspection, or any other type of property inspection, each report needs to contain or omit certain information. This inspection software has the capability to generate reports in both PDF and Word format to meet clients’ individual needs. SnapInspect is also the only property inspection software that enables customization of every single area on the report, which means clients get everything they want and nothing they don’t.
- Finding tenants. Attracting new tenants to a real estate investment can be a major struggle for property managers. With the rise in competition, it’s becoming increasingly difficult to offer low prices and all the services tenants are looking for, such as snow removal, lawn care, etc.
- Performing thorough due diligence inspections. The daunting task of completing an accurate and in-depth due diligence inspection can be time-consuming – often taking multiple days to bring together all this information on a potential investment. Property managers are beating the clock with the use of property inspection software that literally walks you through due diligence reports and saves more than half the time it used to take for inspections. SnapInspect is also the only software that provides video walk-through inspections, making reports more detailed and thorough than ever before.
- Non-paying tenants. There’s arguably nothing worse for property managers to deal with than tenants that are not paying the rent. Especially if it’s a tenant is habitually late. The aggravation of this issue is enough to make some property managers want to bang their head into their desk (disclaimer: we don’t condone bodily harm for venting frustrations).
- Unplanned maintenance. As if routine maintenance isn’t enough of a hassle and expense, unexpected maintenance is even worse. When tenants are living in a building or using it for office space, when something goes down, it’s the duty of the property manager to get it up and running asap. Fixing something once it’s already broken is significantly more costly than performing diligent maintenance and trying to prevent problems from occurring in the first place. This is why it’s recommended to service all equipment on a regular basis to hopefully avoid these emergent expenses.
- Property damage. Possibly the greatest nightmare of all for property managers is discovering damage to a property inflicted by a tenant. Whether it’s a hole left in a way or flooring that’s been ruined – the sky is the limit when it comes to how much it can cost to repair damage done to a rental property. It’s advised to take careful consideration when setting the amount for a deposit with the goal of keeping it high enough to cover possible damage.
- Unorganized record-keeping. With so many receipts, contracts, paperwork and other items that need to be kept in order – things can easily be misplaced or lost. It’s best to work out a diligent system that is always followed for every property managed. Using the SnapInspect mobile app means that you will always have your inspections, videos, images, and reports securely stored in the cloud. Read the full guide here.
- Tenant complaints. On top of everything else property managers do, handling customer complaints also makes the list. This obstacle can become complicated quickly, especially when the complaints concern other tenants of the same building where the property manager must be sure all parties come out satisfied with the resolution.
- Losing tenants. Vacancies mean loss of income. Losing a tenant due to lack of payment, failure to meet expectations described in the lease, or any other reason results in one less occupied property earning revenue. When a tenant is evicted or decides to move out for another reason, it’s now up to the property manager to fill the vacancy. Easier said than done.
Customer-service is key to success in this industry. The more you can cater to the needs of property owners, or clients at the same time making renters happy with the lowest possible price along with as many amenities, services, or incentives you can offer without cutting into your profit.