Property Management may sound like a piece of cake, but it really isn’t. In fact, it is one of the most challenging jobs ever to exist. To be a good property manager, you must possess a diverse range of skills that will help you think strategically and execute marketing strategies and fulfill goals. In this article, we talk about 5 major challenges of property management.
Every property owner’s ultimate goal is to increase revenue, and they expect their property manager to come up with effective marketing strategies to help do that. However, each property comes with challenges of its own.
If the property is old and in dire need of remodeling, bringing in more rent may seem impossible unless the owner agrees to invest in it. However, convincing the owner to spend more money on a not so profitable property is a tough and often unattainable task.
Similarly, the location, amenities in the neighborhood, and many other factors out of the manager’s control affect the profit margins.
Attracting and Maintaining Quality Tenants
Attracting and retaining quality tenants remains the most challenging part of a property manager’s job. They will have to come up with targeted marketing strategies to ensure they reach out to the kind of tenants they seek. Here, their judgment plays an important role, especially during tenant screening.
They are also responsible for drawing up contracts that prove mutually beneficial so that quality tenants stay. However, various other factors besides management, affect a tenant’s decision to stay or leave.
Controlling Unexpected Costs
Where regular maintenance tasks aren’t an issue, unexpected repair requirements can prove very costly. In fact, property damage and unplanned maintenance and repairs prove to be the most challenging task for most property managers.
Here, they don’t know the scale of the damage or the amount that may go into repairs. Managing the unknown is the most challenging because it is almost impossible to prepare for and account for in the budget. However, it is expected from a property manager.
Property managers in charge of multiple properties often face difficulty dividing their time efficiently among each. Here they may end up neglecting estates they don’t deem as profitable as others, which can lead to significant issues in the future.
Neglected properties often feature higher operating costs and bring in lower rent, which proves counter-efficient for the manager and the owner.
Lowering Operating Costs
Property management is a hands-on job. It requires managers to make regular visits to ensure maintenance is up to par, to collect rent, listen to, and sort tenant complaints. However, that significantly increases operating costs as managers have to account for increased fuel expenses.
While switching to property management software seems like the ideal solution, getting the owner and tenants on board is an issue. If they aren’t tech-savvy, they won’t like the idea of using the software.
A significant chunk of a property manager’s job description revolves around trying to control expenses and minimizing damages. However, a lot of the issues are often out of their control. Where there are solutions to almost all of the major challenges of property management, their implementation may be difficult.