Certain issues can be rigorously challenging and may require more time or acute strategies to fix them. Here are some of the difficult issues that a property can face, and the possible solutions that are usually successful in turning the property around.
Dramatic Increase in Vacancies
Increasing rate of vacancies is the number one problem on most distressed properties. However, there is no particular solution, as you need to know the possible causes for tenants to leave the property. Hence, the first step would be to explore things that are closely linked to this particular issue. For instance, property management can check to see:
The current reputation of the property
The condition of the landscape, structures, amenities, appliances, and the state of the inside of the units
The percentage of tenants making late rental payments or skipping out entirely
The recurring complaints that you have been hearing from former or current tenants
The number of evictions in a year that have to be carried out by a court order
Exploring these points can give property management a wonderful idea about where the main problems lie.
During hard economic times, most evictions were for non-payment of rent. However, bad tenants also contributed heavily to this number. In the past couple of years, the eviction rate has slowed down considerably, since some tenants were able to manage their finances much better.
Moreover, many people out there are financially stable, and property management needs to have a proper screening procedure in place, to weed out the non-payers and slow payers. Secondly, eligibility should not be based only on single events but rather on overall past performance, job history, and income of the tenant.
Improving the Condition of the Property
Take care of issues that have played a part in deteriorating the condition of the property. If it is a neglected lawn, have the landscape spruced up, if it is pest infestation, find a lasting solution, and get rid of the problem immediately. Pay special attention to the condition of the structure as well. Fix cracks and leaks, tidy up the common areas, and put a fresh coat of paint on the exterior. Most of these items carry a decent size investment, but the returns can be high since property management will be able to attract new tenants and retain existing residents.
Who wants to leave a place that has property managers that care this much? A basketball court could be on the horizon!
Creating a Reputation that Glistens
In the age of social media, you only need a couple of disgruntled tenants to tarnish the reputation of your property. The first step is to know what has been written on the web about the property, and then take steps to manage the criticism and negative comments.