Mrs. Money and I have been landlords for about 2 years now, and although it’s been quite financially rewarding, its’ certainly been a lot of work, and we’ve had challenges that we’ve had to overcome. One of the first things we considered when we became landlords was how we wanted to handle the property management. Being a landlord is much more than just cashing a rent check each month, you’re responsible for maintaining the property and keeping it in good shape. After all, your investment property if a very large assets – and it’s best to keep it in good condition!

There are two routes that you can take – either DIY and being your own property manager, or you can hire one. To be a great property manager, like the team at GSH Real Estate, it is important to know what some of the biggest challenges are. Knowing what these are will help you decide if you’d prefer to DIY or hire!

Growing Revenue

The ultimate goal for any property owner is to increase revenue. Property owners also expect the property manager to develop effective strategies to market their property. However, every property is unique and has unique challenges.

Issues like the state of the property, upgrades needed, and even the location can impact the ability it has to increase profits. Your main goal is to a) get a steady stream of rent and b) hopefully increase this over time. Many landlords increase the rent on an annual basis to keep up with market demand. It’s important to maintain the property well, and advertise it as such!

Finding and Keeping Good Tenants

Being able to find and keep quality tenants is still the biggest challenge faced by most property managers. This is something that requires the development of targeted marketing strategies to find the right type of tenants. Here, a property manager’s judgment plays a huge role – especially during the screening process.

Property managers must also create the contracts that are beneficial for both the property owner and tenant. This is all challenging and there are also factors out of the property manager’s hands that may cause a tenant to stay or leave. My advice? Do a thorough job of screening tenants – a good or bad tenant can make or break your experience as a landlord!

Control Unexpected Fees and Costs

There are always going to be costs in maintaining a property. Even though regular maintenance is not an issue, unexpected repairs and issues can be expensive. Unplanned maintenance and property damage are huge challenges that property managers have to handle.

If the manager is not sure of how bad the damage is or how much the repairs will be, it can eat into the property owner’s profits significantly. While this is true, it is still up to the property manager to handle these situations. Keep a good list of trusted repair or handy services – having a vendor you can trust is valuable. Get a few quotes before making a decision. However, act professional and keep your tenants in mind. Treating them right might be worth a little extra money in a speedy repair!

Time Management

Modern property managers usually have to handle several properties at once. As a result, it can be difficult to manage everything effectively. After all, there are only so many hours in a day. If a property is neglected, it will usually have higher operating costs and not bring in as much rent. This is not good for anyone – neither the property owner nor the manager.

Get a good system in place to monitor, manage and keep track of everything. Being organized will go a long way in time management!

Lowering Overall Operating Costs

It is important to remember that property management is a hands-on job. It requires that the managers visit the properties regularly, that maintenance is being done, rent is collected, and to handle tenant complaints. However, this is going to increase the overall operating costs for managers.

Even though using property management software can be beneficial, getting tenants and property owners on board can be challenging. If these people are not tech-savvy, they may not like the idea of this software solution. As a result, it is up to the property manager to find ways to work smart, not hard!

Summary

While the field does have a lot of challenges to deal with, there is the potential for it to be a lucrative career field, too. Be sure to keep the information here in mind and make a plan on how to overcome these potential issues. Doing so will pay off and help ensure the desired results are achieved and that the property manager makes the owner and tenants happy.

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