If you are a real estate investor, investing in rental property can be a severe cash cow. Just think- you purchase a property, lease it out to tenants, and preserve their rent amount as earnings. That feels like a fantastic deal, right? But it’s not as simple as it seems. 

Unfortunately, rental property is a serious time commitment. You must promote the listing to find tenants, keep in touch with them, and stay on top of general maintenance to ensure they’re pleased throughout their lease period.

In this article, you’ll learn about rental property management, its types, and its challenges. 

What is Rental Property Management?

Rental property management is when a third party manages the real estate. These companies usually work for the owners of investment properties such as private home communities, condominium complexes and apartments, shopping centers, industrial parks, and individual home communities. The day-to-day responsibilities of the property management companies are collecting rents, setting competitive rental prizes, marketing rentals, screening tenants, maintenance and repairs, and complying with all rental laws and regulations.

Types of Rental Properties

There are different types of rental housing properties that potential tenants gaze at. There are many factors that every investor considers while buying a property, such as population level and income, geography, and convenience.

Here is a list of types of rental properties:

• Residential Property Management– These types of managers are hired for rental properties, and they manage the rental process. They are hired to handle- single-family homes, multi-family homes, vacation rentals, townhouses, apartments, condominiums, and manufactured homes. 
• Commercial Property Management– These types of property owners have different needs from those who own residential property. It can apply to retail properties such as gas stations, malls, and restaurants; public accommodations like hotels; co-working spaces; office properties. 
• Special-Purpose Property Management– There are also multiple types of properties that don’t exist clearly in Residential or Commercial properties. These are worship places, senior care facilities, theaters, resorts, universities and schools, and sports complexes. 

Challenges of Property Management

Property management companies face many challenges. Some of them are listing properties, increasing revenue, time management, and many more. 

Here’s the list of some prime challenges:

• Increasing revenue– An increase in the revenue cost can lead to a significant problem when different types of costs are involved in managing property. These costs are for marketing, renovating, maintenance, remodeling, and many more. It can create issues with the profit margins, and the revenue would have to be boosted to see profit growth. However, the only solution to this problem is to monitor and manage the sales and activities better.
• Property listing– If you manually update the occupancy and vacancy information for each of your properties, then it’ll require a lot of time. But these activities are necessary for showcase opportunities and market availability. If listing the properties takes more time and slows you down, then you can use an inventory management tool to automate this process. 
• Tenant operations– Tenant operation is the process of managing the properties that are leased or rented out to the tenants. It includes duties such as responding to maintenance requests, enforcing the lease terms, and collecting the rent. These are the day-to-day responsibility of every property management company, but these things are primarily crucial for this business. 

It can be challenging to manage tenants because they may violate the terms of their lease or they may not always pay their rent timely. In addition, it can be difficult to manage numerous tenants at once because every tenant has different needs and problems or require further attention. 

• Time management– Keeping an eye on different properties, om-person and virtually, is always challenging. Property management companies ensure that every property is in good condition and that marketing and sales are running at high speed. You can’t miss out on any deals and leads without good time management.
• Safety concerns– Property management companies must ensure that their properties are safe and meet safety guidelines. Moreover, they must ensure they are equipped with adequate measures to deal with an emergency. Some of the necessary safety measures include smoke detectors, fire alarms, sprinklers, circuit breakers, insulated wires, pressure-resistant piping, and many more. 

Conclusion

In conclusion, hiring a property management company is a good decision if you are a real estate investor. The above-given guide gave you a glimpse of what’s a property management company, its types, and the challenges they face. 

Hope it helps! Stay tuned for more such articles like this.