Property management has become quite easier as compared to what has been happening in the past. However, there are still some challenges on the way. The shifting to online systems and platforms has made things quite easier. We can look at the pictures online which allows us to finalize a short list. So when we finally have the shortlist, we can go and visit the places in person. This saves us a lot of hassle.
If you own a property, renting it has become quite simple. You can easily find potential renters and make them pay a visit. Thus, your place won’t remain empty for a long time. Likewise, if you are looking for a place to rent, you can shortlist the ones that fulfil your requirements. Everything is so simple and easy.
Some sites and platforms offer a list of places that are available for rent. Likewise, others offer real estate investment opportunities. For example, kigcapital is a Los Angeles property management service provider. This is a property management company that cares about its tenants. So you will hopefully have a good time with them.
So what are the challenges on the way?
1. Handling the renter turnover
One of the challenges on the way is handling the turnover. It has always been a challenge to handle the turnover. There is no single reason behind this. Therefore, there is no single solution for it. You have to analyze the problem to find the solution. And sometimes, there is not even a solution.
So let’s look at the problem first,
Change in the location or employment status
One of the reasons behind this is the change in the employment status of your renter. If he is working in a company, the person will find a place near his office. So you got such a renter. But what if he changes his job to a different location? Of course, he will leave the place. And what can you do here? Absolutely nothing.
The budget is going up
We all want the best for ourselves. So if there is a fresh graduate who has just joined a job, he or she will look for the cheapest available option. This is because they will be able to manage their expenses with this. However, as they keep on working, their salary increases and they get better job offers. As a result of this, they change their place and move to a nicer unit. And what will you do with such renters? Of course, you cannot do anything. You have to let the, go.
Family size increases
Another reason for shifting is the increase in family size. A couple can easily live in a single-room unit. However, as their family grows, they need more space. Thus, they will move to a different location.
These are some of the reasons why you cannot do anything and have to go through the process.
However, not all problems are unsolvable. If you pay attention to your renters, you can reduce the turnover. One such solution is having regular communication with them. if you have a good bonding with them and you are on good terms with your renters, they would hesitate to move. This is because of the involvement of personal feelings. Furthermore, they know that they will get better treatment with you.
2. Collecting rent
This has been a problem from the start and we are unable to solve this. If you are renting your property, you cannot make sure that the renters will pay their rent on time. Because they might lose their job during their stay or can suffer from any mishap that cost them too much.
But the solution is that you have to check the employment status before renting the place. If a person is employed, he will be able to pay the rent. However, some people have a lot of debt on them. What can you do to them then? Well, if possible, you should ask them if they are suffering from any such problem. This will help you in the longer run.
In addition to this, you can also make sure to do a thorough background check. A background check will help you to analyze the credibility. Through a background check, you will be able to check where they have been living and why they are moving to a new place. If you know such information, you will know whether they are reliable or not.
3. Renters subleasing your property
You are only renting your place and someone else will be living there. You are not living with them and therefore, you cannot know how many people will stay there.
For example, you rent the unit to a person and he subleases it. You won’t even know about it. Thus, there will be two people sharing the unit and renting the place and you will be getting the rent from one. Although it doesn’t affect your apartment quite much, you won’t even know who the other person is. Furthermore, if that person is involved in illegal and unethical activities, you will be responsible for that.
Therefore, it is not acceptable to sublease the apartment. And if you are renting your place, you should make sure to ask how many people will live there. This information is a must because otherwise, you won’t know if your renter is subleasing the unit or not.
The best option is that you add a clause to the rental agreement. There should be a clause that no subleasing is allowed. Thus, if the renter is found involved in any such activity, you will be able to take legal action against him or her. You have to analyze your unit to check how many people can live there. If the unit is for a single person, you have to tell the renter first.