Common challenges in property management

 

Almost any company that wishes to accomplish work in property management has to gain new businesses, open new opportunities for expansion and increase the portfolio over the years. The challenges that you have to meet as a real estate manager are numerous and they have not really changed over the years. While it is still necessary to acquire and maintain satisfied clients, you still have to deal with issues such as operating costs, poor communication or rent arrears. Although you can manage your business more effectively and streamline operations with the help of a property management software, you still need some suggestions on how to avoid them. These are some of the universal issues that you are likely to face:

Common challenges in property management

Operating costs

Energy costs are a big issue for every property manager of every type of building. The higher costs will be visible in your utility bills, while the increased indirect costs are visible in higher prices for about everything that you purchase. Energy saving initiatives should be your number one priority, not to mention that you will need a strong maintenance program is essential in order to make sure that your heating and cooling systems are functioning properly. However, it is important to avoid costly mistakes. If the prices are cheaper, this does not necessarily mean that they will save you the most money. When looking at price, take into account the value of your business in the long run.

Rent arrears

It is the legal responsibility of the tenant to make sure that the rent is paid on the same day of every month. Contrary to popular belief, the landlord does not have to chase the tenants for payment or remind them to pay the rent. Should unforeseen financial problems occur, there are legal procedures that can be put in place to resolve the sensitive issue. It is important to deal with such matters promptly and compassionately. Some problems that the tenants encounter in relation to rental properties may arrive as a change in circumstances, such as death or job loss. Your main responsibility as a property manager is to review the rent accounts on a regular basis in order to make sure that any arrears are identified from an early stage.

Bookkeeping

Accounting should not become the main point of your daily operations, but you should not neglect it. As a property manager, you should collect the rent, pay the bills and oversee repairs and maintenance of the real estate. Sometimes you may even find bills for services without sufficient substantiation. Therefore, you have to be vigilant and maintain control. You own the properties and it is ultimately you who is in charge. The easiest way in which you can maintain control over the properties is to maintain control over the cash. In this sense, you should set up at least three bank accounts: an opening account, a securities deposits bank account and a rental receipts account. As a property manager, you have to have unlimited access to the operating bank account in order to pay the bills.