What Are Some Unexpected Challenges in Property Management?
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What Are Some Unexpected Challenges in Property Management?
Ever faced a situation in property management that left you scratching your head? Real Estate Investors and CEOs have shared their toughest challenges and how they tackled them head-on. From enforcing standards and consequences to initiating formal eviction processes, this article presents four expert insights. Get ready to uncover the most surprising hurdles and effective strategies in the property management realm.
- Enforce Standards and Consequences
- Manage Abrupt Tenant Turnover
- Conduct Welfare Checks for Unresponsive Tenants
- Initiate Formal Eviction Process
Enforce Standards and Consequences
The most unexpected and challenging problem I have faced with property management is empathy. Allow me to explain. I consider myself a pretty nice guy. I want people to be happy. I want to be fair. When dealing with renters, there are times that people will fall behind on rent or have another issue like minor property damage. I have had a difficult time being strict when I wanted to be understanding. The solution was to have a set of standards and well-spelled-out consequences that I enforced strictly but fairly across the board. This was included upfront in the lease so that it is both fair (the tenant is warned ahead of time) and enforceable (since it is a signed contract).
I hope that helps!
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V/R,
Mark
Manage Abrupt Tenant Turnover
One unforeseen challenge I encountered was managing an abrupt tenant turnover. A long-term tenant unexpectedly vacated, prompting me to quickly devise a solution, as this situation could significantly affect cash flow.
To address that situation:
* First, I prioritized immediate communication by reaching out to the departing tenant to understand their reasons and gather feedback for improving future tenant retention.
* Next, I focused on a quick turnaround by preparing the unit for re-renting as soon as possible, which included cleaning, making necessary repairs, and possibly updating the space to enhance its appeal.
* Then, for my marketing strategy, I utilized various platforms to advertise the vacancy, including social media, property-listing sites, and local community boards, ensuring to include high-quality photos and detailed descriptions to attract more interest. Additionally, I implemented a thorough screening process for potential tenants to ensure a good fit, which would help reduce turnover in the future.
* Finally, I considered offering incentives, such as a reduced first month's rent, to attract new tenants quickly.
Conduct Welfare Checks for Unresponsive Tenants
As the owner of Leave The Key Homebuyers, with experience owning and managing over 75 units, I've faced my fair share of unexpected challenges in property management.
One of the most surprising was dealing with a good tenant who had consistently paid rent but suddenly became unresponsive and stopped communicating altogether. Despite no prior issues, the tenant stopped responding to calls, emails, or any contact attempts. We had no idea if they had abandoned the property, were dealing with personal issues, or intended to stop paying rent. This created a difficult situation, as it was unclear if we should prepare for an eviction or if there was a simpler solution.
To address it, we conducted a welfare check, making sure to follow all legal guidelines and respect the tenant's privacy. We also posted a formal notice on the property, requesting the tenant contact us immediately. Ultimately, the tenant reached out, explaining a personal crisis that had kept them out of touch, and we were able to work out a temporary payment arrangement.
I'd be happy to discuss this further or share other property-management insights.
Best regards,
Ben Wagner
Owner, Leave The Key Homebuyers
https://leavethekey.com
Initiate Formal Eviction Process
One unexpected challenge I encountered in property management involved a tenant who stopped paying rent despite a strong financial background. They had passed all the checks and had excellent references, but a few months in, the payments became sporadic and eventually ceased. I reached out to the tenant to understand the issue, offering solutions like a payment plan, but communication soon broke down.
As a property manager, I had to act swiftly while complying with Ontario's tenancy laws. I initiated the formal eviction process through the Landlord and Tenant Board (LTB). My experience navigating this system was key, ensuring I avoided any legal delays. I filed all necessary forms, documented every step, and stayed prepared for hearings with thorough records.
A critical takeaway from this situation was the importance of having robust lease agreements and procedures in place before problems arise. After this experience, I strengthened clauses related to non-payment and implemented an automated rent-collection system to address late payments immediately.
Ultimately, the tenant was evicted, and I re-leased the unit to a more reliable tenant. Although the eviction process can be lengthy in Toronto, my proactive approach minimized the financial impact. This challenge reinforced that expertise in property management means not just responding to issues but having systems that anticipate and mitigate them.
