Property management is an integral part of real estate investment, and its success is hinged on the efficient management of properties to ensure a profitable return on investment. It is an intricate process that involves providing day-to-day oversight of the property, including tenant administration, rent collection, maintenance, and more. However, managing a property can be an arduous task, even for experienced property managers, as it entails overseeing the rights of both landlords and tenants.
One of the most common issues encountered during the property management process is the apportionment of repairs liabilities. This issue stems from the fact that tenancy relationships involve both the landlord and tenant’s repair liabilities. Addressing the repair liabilities that fall under the purview of each party can be daunting and can affect the overall and complete management of the property, which in turn can lead to property deterioration.
Another issue is the delayed or non-payment of rent. Tenants’ inability or refusal to fulfill their rent obligations can be a major deterrent to effective property management. To counter such situations, property managers must set up suitable measures for rent collection and recovery.
The continued non-payment of utility bills covering waste, electricity, and water by tenants is also a challenge faced by property managers. This issue can deal landlords a significant blow, and some utility service providers are forced to transfer the debt to the landlords in case of eventualities. In a bid to satisfy their clients, property managers are found in a dilemma and resort to revenue-driving tasks such as constant reminders and visitations.
Another issue that property managers encounter is the legal system. Landlord-tenant relationships are guided by the law, and the aim is to ensure that either party does not take undue advantage of the other. In the event of a default, the law favours the tenant, as only the court can eject a tenant and his belongings. This further contributes to management issues.
Maintenance is also a significant challenge for property managers. As a good physician does for his patient, ensuring a property’s physical, functional, and economic well-being is the primary focus of any property manager. Achieving this goal can sometimes be difficult for the property manager, mainly due to his dependence on other fields and building artisans. In this case, collaboration becomes a sine qua non for achieving his goal.
Rent review is another area where property managers encounter challenges. Negotiating a rent review can be the most controversial period for a tenant. If not handled properly, rent reviews can lead to litigation. This can become a major stumbling block for the property manager to continue his functions, and to avoid disputes, there must be clarity as to the timing or rate of increase as agreed by both parties.
In light of the above issues, property managers must develop effective strategies to manage properties efficiently. One way is to have clear policies and procedures in place that outline the roles and responsibilities of both landlords and tenants. Property managers must also set up effective rent collection systems and procedures that include tenant education and reminders to avoid delayed or non-payment of rent.
Additionally, property managers must maintain regular communication with tenants to understand their needs and concerns. This will enable property managers to address any issues that arise promptly and effectively. Property managers must also maintain and update property records regularly to track maintenance schedules and repair liabilities.
Collaboration is also essential for effective property management. Property managers must collaborate with other professionals such as lawyers, accountants, building artisans, and utility service providers to ensure seamless and efficient property management.
Finally, property managers must stay abreast of the legal requirements for property management. This will enable them to comply with the laws and regulations that govern landlord-tenant relationships and avoid potential legal disputes. In conclusion, property management is a critical aspect of real estate investment, and property managers must develop effective strategies to manage properties efficiently. By addressing common management issues such as apportionment of repairs liabilities