Are you a landlord or property manager who’s having trouble with tenants not paying rent on time? Many people are having trouble keeping up with their bills, but that doesn’t mean that you shouldn’t communicate about it.

Managing properties is hard enough, and talking about rent is awkward, so we want to help. Keep reading to learn about what to do when your tenant can’t pay rent on time. 

Plan Ahead

It’s always a good idea to go into this situation with a plan in mind, preferably before it comes up at all. If you’re reading this and you haven’t yet encountered the problem, you’re on the right track. 

Plan out how long you’re going to allow rent to be overdue. Many people include this in lease agreements, but if times are tough it’s a good idea to have some wiggle room. 

Then consider your plan of action. 

Talk to Them

The first thing that you should do is communicate. It’s possible that your tenant isn’t aware that they missed rent this month. If they have a lot going on and they don’t have automatic payments, it’s normal.

If they are aware, having a conversation and being empathetic can go a long way. You need to see your tenants as people. Many tenant issues can be solved through communication. 

Explaining the situation, that you also need to pay for the property and associated maintenance and bills, will help them understand why rent is so important. 

Negotiate

While you’re communicating, try negotiating with your tenant. You can give them options to help them pay their rent.

One option, if you’re up for it, is giving them a temporary discount. Many people are out of work, so taking off a small portion of their rent can help them pay on time. 

If not, try setting up a payment plan. Let them pay small amounts throughout the month so it’s easier to manage than one large payment at the end. 

Giving your tenant options can help both of you. You get the money that you need and they get enough relief to pay. 

Send a Notice

If your tenant still doesn’t pay rent in the allotted time, it might be time to send an official notice. This should be a formal letter, and it’s a good idea to put it both in an email and on paper. This way you have a paper trail and you can prove that your tenant received the notice.

Sometimes all it takes to get a tenant to take things seriously is an official warning letter that lets them know what will happen if they continue to not pay. 

When Your Tenant Can’t Pay Rent, Try These Tips

Every property manager or landlord will experience this problem at least once. Remember, talking to your tenant may be all you need to get your rent. Even the best tenants fall on hard times or let bills slip their minds. When a tenant can’t pay rent, start by being understanding and go from there.

Are you looking to get new tenants for your home? We want to help. Contact us to learn about how we can take communication out of your hands and find the perfect tenant. 

Working with haste to rent your property is never a good idea. While you may desire to start earning income, you are more likely to lose profit at your investment property if you accept anyone.

Screening tenants is one process you never want to skip. You are more likely to have to evict a tenant if you fail to do this for reasons such as missed payments.

Increased risk of property damage is another concern. Keep reading to learn what to include when you screen applicants as the landlord or property manager. 

1. Create a Checklist

Not everyone who has an interest in your house should qualify. The best way to find the best fit for an applicant is to make a checklist. The prospective tenant(s) should be working and must make a certain amount per month as proof they can afford the place. 

Ask that they earn 1.5 to 2 times the cost of the property at a minimum. You should also verify their employment references to ensure they are indeed working. 

2. Complete a Background Check

As a property manager, it’s also your responsibility to do a background check. There are three things you want to look at: criminal history, credit history, and eviction history. 

Checking their background to see if they have any criminal history seems invasive, but it’s a common requirement you should do. It would be an expensive mistake to make.

Their credit history may be the most important as it is a trustworthy way to see how well an applicant pays money they owe and if it is on time. You must check to see if a prospect has a prior eviction as well. While not 100%, there is an increased risk you may have issues with needing to evict later as well. 

3. Understand Screening Laws

There are limits as to what you can when it comes to screening. The Federal Fair Housing Law protects applicants and ensures everyone receives fair consideration. For example, you can’t discriminate against someone at a chance to qualify over their color, race, religion, gender, status, or presence of a disability. 

4. Start an Application 

Talking to all applicants and meeting are a must, but the process isn’t complete without an application. All terms and agreements must be in writing, not just verbal.

Upon approval, the applicant agrees to the set rules and expectations. This is vital in the event issues arise or you need to go to court.  

5. Narrow Your Selection

If all goes well, you will have several applicants and it will be your job to choose the right one. You want to find an applicant that meets the requirements you set or exceeds them.

It’s best to wait for new applications if someone does not meet them. Never settle and accept. 

Screening Tenants Will Save Time and Money 

You will save hundreds to thousands by screening tenants before they step foot on your property. Although it may take time to complete, you lower your risks of dealing with someone who will damage your place or fail to pay on time. If you need assistance keeping track of your property and want to find the right property manager, contact us. 

From 2010 to 2016, the number of renters in America grew by 976,000 per year. This statistic demonstrates the extremely difficult reality rental property owners face when searching for new tenants. 

The following guide provides seven benefits of using a property management service when renting your property. 

1. Reduced Legal Issues

Property management services understand the legal implications that can result from a single bad tenant. For this reason, it is a good idea to hire their services so that you can protect yourself against potential lawsuits or other vulnerabilities. 

These services help you understand current laws around rental properties such as eviction, tenant screening and unit inspections.

2. Quality Tenants

Finding an ideal tenant can be a difficult task without knowing what qualities to look for. A great property management company will help you find tenants that are willing to rent long-term, make payments on time and minimize property damage. 

3. Low Maintenance Fees

Property managers have access to professional, bonded contractors that typically offer their services within a fair price range. Hiring a contractor through a property manager can help save you time and money in the long run.

As an added bonus, this keeps your tenants happy by offering them reliable maintenance of the rental property.

4. Eased Rent Payment

Having a property management service take care of rent payments helps put a barrier between you and the tenant. This can help ensure that you are not taken advantage of in cases where the tenant may be unable to pay rent on time. 

Also, if eviction is necessary, property managers understand the legal requirements of this process and help ensure it is handled as smoothly as possible.

5. Increased Property Value

Property management companies outline the key requirements to maintaining the value of your property. These requirements may include performing regular maintenance checks and keeping detailed documentation. 

Without following their advice early-on, it is likely that you may end up paying heavy fees to repair damage done by the tenant. 

6. Reduced Vacancy Times

Professional property management companies help to ensure that your property does not remain vacant for long periods of time. Some ways they avoid this include: 

• Preparing the space for renters
• Calculating ideal rent rate
• Efficiently advertise the property 

7. Decreased Personal Stress

Finally, the use of property management services helps elevate stress, gives you personal freedom and increases the time you have for yourself. By using their services, you don’t have to worry about working around the clock or tending to emergencies. 

Their help allows you to focus on concerns of a larger scale, such as asset management and spending time with family or friends.

Hiring a Trusted Property Management Service

The knowledge that experienced property managers bring to your business aids in the entire rental process. From listing the space to drafting the rental contract, property management services are deeply dedicated to you and your business.

Outland Real Estate is a committed property management service that prides itself on their great expertise. To begin learning more about our services, feel free to contact us to learn more. 

Did you know that property management is 18th among the 20 happiest jobs in the U.S?

Beyond job satisfaction, property management is also a growing field with significant earning potential. Considering those facts, pursuing a career in property management is a great decision.

As the overseer of real estate big and small, property managers wear a lot of hats, which means their skill set is long and varied. But more than those soft skills, there are also training and educational requirements for property management.

If you’re ready for a career change, property management is a growing field with an excellent salary. We’ll tell you more about what it is and how to get involved in this guide to starting a career in property management.

What Is Property Management?

Property managers are overseers of real estate entities and all the responsibilities that go along with them. Real estate entities can include residential buildings, commercial buildings, or even building projects.

On the day to day, a property manager may be responsible for a number of operational, administrative, and maintenance-related tasks. These include:

• Showing, inspecting, and evicting tenants from residential properties 
• Collecting rent
• Filing taxes
• Maintaining listings
• Asset management

Property managers may also be involved in marketing and communications, depending on the company for which they work.

How to Pursue a Career in Property Management

Property managers make an average salary of nearly $60,000 per year. Property management has also been voted among the jobs with the highest job satisfaction in the country. With stats like that, it’s no wonder that more and more people are looking to pursue a career in property management.

But how exactly do you go about that? We’ll explain the education, training, and skills you need to succeed in this field.

Education

There is no particular education required to be a property manager. Each company will have its own requirements, according to what they do and where they’re located. 

While it’s technically true that you can be hired with only high school education, most property management companies hire people with at least an undergraduate degree. Preferably, that degree should be in real estate or a related field such as business or finance.

Certification and Licensing

Some states require property managers to have a real estate license. Other states don’t require a real estate license but you’ll be required to pass a certification test.

Some certifications you might consider are the Accredited Residential Manager (ARM) or Certified Property Manager (CPM) certifications. You may also pursue certification through the Institute of Real Estate Management (IREM).

Skills

Considering the diversity of tasks and responsibilities in property management, you’ll require a number of wide-ranging skills.

In terms of accounting skills, you’ll need to have a good handle on tax law. You’ll also need to know how to create and balance a budget and how to prove returns on investments.

Property management also has a lot of administration skills involved. That means you need to be organized and efficient, staying on top of paperwork and bills. Of course, the property will also need to be maintained, staffed, and insured, which is usually the responsibility of the property manager.

Personal skills are important in property management because you’re hiring and firing employees and building teams. You’ll also have to deal with tenants and often act as the liaison between owners and residents.

Hire a Property Manager

Pursuing a career in property management isn’t something one does as a hobby. This intensive career requires training and skills that are demanding. It takes real commitment to become a property manager – and to be a good one at that.

If you require a professional property manager, let us help you. Contact us to find out more about the property management services we provide.

As any experienced landlord will know, the management of their relationship with their tenants is often the hardest part of the job. According to a recent survey of landlords, one of the most common issues they face in the job is dealing with problematic tenants, with a full 37% of landlords describing difficult tenants as their biggest worry.

However, as a property manager, there are steps that you can take to mitigate this. Simply listening to your tenants and being able to quickly respond to the most common rental issues will help ensure a smooth relationship from the outset. With that in mind, here are the seven most common issues that tenants complain about, and what you can do to resolve them.

1. Maintenance Issues

Problems with appliances and utilities are by far the most common source of complaints from tenants. As a landlord, you should take these complaints seriously and immediately take action to resolve any maintenance issues in a house or apartment.

Always have an updated contact sheet of trusted repair people that you can call when your tenant reports a maintenance issue. 

2. Poor Communication

Another very common complaint from people who rent their homes is poor communication from their landlord. No matter how many tenants you have, it is your job to respond quickly and effectively to queries from tenants.

You should also be proactive and keep your tenants updated on things like inspections, maintenance work, and noise disturbances. 

3. Noisy Neighbors 

Noisy neighbors are another common issue that anyone who rents out the property should be prepared to deal with. Most noise complaints tend to be because of one single bad tenant who is ruining it for everyone else.

You should be prepared to do everything in your power to identify the noisy tenant and deal with the problem effectively. 

4. Boundaries

While poor landlord communication is one issue, a lack of boundaries is another. If you’re the type of landlord that thinks it is OK to turn up to a tenant’s home unannounced or try to keep tabs on their habits or schedule, then you need a reality check.

Your tenants are individuals with a right to private life. Respect their boundaries and accept that this is their home for as long as they are paying the rent. 

5. Security Deposit Issues 

The security deposit exists for a very important reason. However, far too many landlords will try to bend the rules and treat tenants unfairly to keep the deposit for themselves. Don’t be that person.

Unfairly withholding a security deposit can cause significant legal troubles for you and the properties that you manage, so don’t do it. 

6. Damage to Common Tenants Areas 

Damage to the stairwell, common room, roof terrace, pool, and grounds of the building are a common cause for complaint. Not only is it your job to be reactive and repair the damage quickly, but it is also important to be proactive and make sure that people are deterred from causing damage.

If you know of a particular tenant who is damaging common areas, then take action to ensure they won’t do it again. 

7. Parking 

Finally, there is the age-old issue of parking. These are problems that can often be resolved with good communication and signposting. One tenant might not realize that they are taking up someone else’s parking space.

Another might think that they can park both of their vehicles outside the building, even though they only have one designated space. Making the rules clear at the outset will prevent a lot of trouble further down the line. 

Get Expert Support Today 

If you want to have a smooth and mutually beneficial relationship with your tenants, having the right resources can help. At Outland Real Estate, we provide expert support and guidance to landlords looking to rent and lease out a building. If you’re looking for expert advice, don’t hesitate to get in touch with us today. 

Franklin D. Roosevelt said that real estate “is about the safest investment in the world” as long as you purchase it with “common sense.” It’s no surprise that a majority of the world’s billionaires make their money this way.

While investing in rental properties may seem like an easy, low-risk way of creating residual income, the reality of managing property can create a shock for new investors.

Managing property is both hard work and time-consuming, so it’s important to go into the new venture prepared.

In this article, you’ll learn about the biggest property management challenges. Whether you are an investor considering rental properties or thinking about going into property management as a career, this article is for you.

Top 5 Property Management Challenges

Some of the challenges of property management jobs are similar to those of any career. Others are unique to this position.

Finding Good Tenants

Those who manage residential properties use Zillow, among other methods, to find renters. Since many of the people who reach out may not be serious about renting, sifting through the responses is time-consuming.

Once you find people who are serious about renting, you need to make sure they’ll pay their rent on time and not be a liability. This is why credit and background checks are so important.

Tenant Management

After finding the right tenants, be prepared for issues to come up at all hours, like leaky roofs. Property managers can even get calls and emails in the middle of the night.

In addition to routine maintenance, you may discover property damage by the tenants when they move out. Although rare, you may even have to handle serious problems such as theft or domestic violence.

Quick, appropriate responses to tenant issues will prevent bad reviews and high tenant turnover.

Unexpected Expenses

If you’ve ever been a homeowner, you know to expect unexpected maintenance and repairs. Now imagine having many homes to manage.

Routine inspections for things like leaks will mitigate the damage and prevent you from paying even more down the road.

Staffing

If you own more than a few units, you might need to hire staff to help with the day-to-day administration. This can include answering phones, responding to emails, processing applications, and collecting fees.

Even though a high unemployment rate means a larger pool of applicants, finding the right staff can still be time-consuming.

Retention is another factor. According to a Gallup article, US businesses lose one trillion dollars per year due to employee turnover. 

Time Management

The amount of time needed to manage even a small property can be a shock to new property managers. An urgent call from a tenant with flooding issues, for example, can take up a good part of your day.

Handling applications, collecting rent, and responding to tenant complaints and demands can be time-consuming, especially if you own multiple units or have another job. 

Eyes Wide Open

Now that you understand the property management challenges you’ll face, be honest with yourself. Do you want to be both an investor and a property manager? Do you have the time to handle it all?

If you have a full-time job, own a large complex, or simply don’t have the time for the numerous issues that regularly come up, it might be wise to consider hiring a property management company.

Read this article to learn about how to find a property management company you can trust.