Owning rental properties is a great type of investment for some people, but managing your rental properties can be very difficult, especially if you do not have any experience. Here are three of the top problems people have when they manage their own properties, and these problems can take a lot away from the profitability of your units.
Long Vacancy Cycles
A big problem you may face with your rental properties is long vacancy cycles. A vacancy cycle refers to the time it takes for you to rent out an apartment from the day the previous tenant moves out to the day the next one moves in. If it takes you 30 days or longer to rent out a unit, you are losing money. A property management firm is good at reducing the vacancy cycle so that it is shorter. If you can get new tenants in there faster, you will have money coming in faster.
A second problem you might face is choosing the wrong tenants. Having good tenants is worth a lot when you own rental properties, because good tenants do not cause problems and do not damage their units. Good tenants also pay their rent in a timely manner, and you do not have to constantly hound them down to get the money.
If you struggle finding good tenants, you might want to hire a property management firm. These firms know the best techniques for screening tenants, and they aim to find the best tenants around. With good tenants, you will have fewer problems and collect more rent.
Improper Eviction Procedures
If you have ever had to evict a tenant and did not know how, this may have resulted in problems. Every state has specific rules landlords must follow when they choose to evict a tenant. If you currently want to evict some tenants but do not know how, you could also benefit from hiring a company for help. Property management firms also know exactly how to evict tenants, and they can make sure they do this the legal way and as quickly as possible so you can get another tenant in the unit.
If you own and manage rental properties and are experiencing these types of problems, now might be a good time to contact a property management firm. A property manager can take over your management duties, and property managers will have fewer issues with the problems listed here.