When you’re managing a rental property, you have many things to think about. If this is your first time facing this kind of responsibility, you might be overwhelmed. Some of the tenants won’t pay the rent on time. Others will make noise, and some will bring stray animals in the property although that’s against the rules. What do you do?
We’ll list 6 common problems of property managers, along with possible ways to overcome them.
- Tenants Being Late with Rent
This is the most common issue that property managers have. You understand that some of the tenants will face serious financial problems, so you’ll want to give them a chance.
The first thing you’ll do is remind the tenants about the rent being due. If you give them a chance to pay the rent a bit late and they still don’t pay it, you’ll have to do what you least want to do: start the process of eviction.
The main question is: how can you prevent this from happening?
- Automated clearing house debit is one of the best options you have. If the tenants have funds in their bank accounts, you’ll automatically get the payment on the scheduled date.
- Explain what the consequences of late rent payment are before the tenants move in. Tell them when and how the payments should be processed. Explain what methods of payment you accept. Go in details with the penalties predicted for late payment. If they are aware that being late with the rent doesn’t go to their advantage, they will do everything in their power to avoid such situation.
- Handling Tenant Eviction
This is the last method you’ll want to employe when managing a property. However, it’s absolutely necessary in some situations.
If you notice that some of the tenants make late rent a habit and there’s no way for them to catch up with the schedule, you’ll have no other choice. If some tenants are too noisy and they keep disturbing the peace no matter how many chances you give them, eviction will be inevitable.
How can you solve this issue? You can’t just evict someone without proper planning. You must understand the laws of your state. The lease agreement has to include terms on eviction, and you’ll have to respect them. Find the Landlord Tenant Act of your state and make sure to respect the tenant rights that are protected by law.
- Writing Agreements and Notices
How do you write the notices? When you have new tenants moving in, you’ll have to provide them with a lease agreement. When it’s time for an eviction notice, you’ll have to write it in a legally-acceptable form.
One option is to find a form online and adjust it to your situation. That’s not always possible, since your circumstances are unique. Hiring a lawyer to prepare these documents is what most people will recommend you to do. However, that may be too expensive for you. Online writing services are a more affordable option. You can check writing services reviews to pick the right one for you.
If you don’t set and use your accounting software well, you’ll have a problem. At the end of the year, you’ll get high reconciliation charges from your accountant. To make things worse, you’ll also have unanticipated taxes to tale care of.
The solution? Do your bookkeeping extremely diligently. Check out online webinars and courses that help you master the concepts of accounting. It’s not rocket science; it’s all about discipline and commitment.
- Complaints by the Residents
As a property manager, you have a responsibility to maintain the property in good condition. No matter how hard you try to do that, you’ll still get tons of complaints. Some people will have problems with their neighbours. Others won’t be happy with the heating system. You’ll get various complaints and you’ll have to handle them in one way or another.
- Ask the residents to write a formal complaint. That should help you get rid of anonymous and senseless complaints.
- Make a plan! Set the priorities. Whenever you get a complain that’s very serious, deal with the issue immediately.
Don’t let the issues to escalate into huge problems. Never ignore the grievances.
6. Property Damage
You can’t be inside each apartment to see how the tenants live. You’ll miss out on more parties and fights than you can count. You’ll face stained carpets and chairs, damaged mattresses, and broken items.
Of course you’ll send the repair bill to the tenants responsible of the damage, but they might refuse to pay it. If you take legal action, it will cost a lot more than the cost of the repairs.
- Choose the tenants very carefully.
- Use the security deposit to cover some of the repairs when the tenants refuse to cover the bill.
- If some of your tenants are continuously causing damage, you’ll have no other choice but to start an eviction procedure.
Being a property manager is not an easy job. It’s a job like any other – it imposes challenges. When you predict those challenges, it’s easier to handle them.
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