Managing a rental property poses many challenges. From collecting rent to coordinating maintenance repairs to finding and communicating with residents day in and day out. Proper management requires a lot of time, knowledge, and expertise that consumes a lot of energy, and quickly burns out many rental property owners. It’s why property management companies came to be in the first place! So what are the top reasons rental property owners and investors choose to hire a property manager in the first place? Let’s address the top pain points of managing a rental property and how Real Property Management Colorado solves those problems for you!
Top 5 Pain Points of Managing A Rental Property in Colorado
Challenge #1-Time and Peace of Mind
Would you trust your dentist to fix your air conditioner? Would you ask your neighbor to screen tenants for you? We get these are somewhat exaggerated, but the point is that there’s something to be said about professional expertise. And while DIY is always an option, there’s something to say about the peace of mind that comes with knowing someone else with all of the knowledge and time is capable and willing to do it for you. That’s where challenge #1 comes in. Even the easiest rental property requires dedicated time and attention to manage properly at every stage of the process, from finding and screening new tenants to collecting rent or coordinating repairs and move-outs. So the biggest question to ask yourself when considering self-management vs hiring a professional is this: how much is your time and peace of mind really worth?
During a recent survey of our clients, we found that the majority reported that the most important thing that comes with hiring Real Property Management Colorado was peace of mind. The value of knowing everything was being taken care of for them justified the cost of professional management. It allowed them the freedom to be hands-off and provided a professional buffer with their residents. Having a reliable partner who handles all of the day-to-day of managing a rental and has the resources available to keep up with all of the many changes taking place in the marketplace means a lot. It relieves stress and frees up time that could be better spent focusing on other things, both personal and professional.
Challenge #2- Finding and Managing Tenants
Managing a rental property involves more than simply putting up a “For Rent” sign and collecting rent. Not only do you have to know the current trends in the market and determine the right starting price, but you also have to stay up to date on all of the legal changes revolving around applications, tenant screening, and managing a rental in general. So let’s look at the challenges that come with first finding, and then managing tenants.
It starts with building a thorough and legally compliant application and screening process. Knowing what you can and can’t require of a prospective tenant is crucial and helps narrow down those who are actually qualified while remaining compliant with local, state, and federal laws. Once you’ve set your approval criteria, you have to begin advertising and showing the property. Do you have the time to answer all of the calls and questions about the property? Can you drop what you’re doing to show prospective tenants the property regularly? Are you prepared to get no-showed? How do you plan to collect and screen applicants?
And once you’ve found qualified tenants, the day-to-day management begins. This entails everything from collecting rent to coordinating repairs to handling lease or HOA violations properly to proceeding with legal measures when necessary. Even the best, most qualified tenants require some level of attention and communication. Ensuring you have the time, knowledge, and resources available to balance their needs and responsibilities with yours easily becomes overwhelming.
Finding and managing tenants was the second most important reason our clients chose to hire Real Property Management Colorado. As a professional property management company, we already have the processes and procedures in place to find and manage qualified tenants. Another check mark to add to the list!
Challenge #3- Collecting Rent
How do you collect rent when self-managing? In this day and age of technology, do you still collect paper checks? Do you use methods like Venmo or PayPal and if so, do you know the challenges that come with those collection methods? How do you keep track of your rental property’s finances? Do you keep tenant funds, such as security deposits, separate from your other funds? Managing the financial side of your rental property involves more than just collecting rent and without the proper tools or resources, it can easily get tricky.
Rental property accounting requires knowledge and planning for both the good times and the bad. A DIY landlord needs to know the proper way of accounting for and collecting payments as well as the legal procedures necessary when tenants stop paying. Do you know when to post demands for payment? How about the legal requirements and timelines needed before an eviction can even take place?
Once again, we point back to the peace of mind that comes with knowing someone else knows and will take all of the proper steps for you. Property managers like Real Property Management Colorado have all of the necessary tools and conveniences available for both tenants and property owners alike. Online payments, account tracking, and easy payments to homeowners- you name it! Our team also has a thorough understanding of the necessary procedures and steps that must be taken when a tenant stops paying. From posting demands for payments to negotiating payment arrangements to filing evictions when necessary; our team handles all of these for you, including the tough and sometimes negative conversations that come up when asking for rent.
Challenge #4- Maintenance
Maintenance repairs don’t often come at convenient times or stick to a schedule. Managing a rental property on your own means being on-call for any and every emergency, including those that often aren’t. After all, you can’t ignore your tenants’ requests. Even the small ones need to be addressed and responded to, even when the answer is “no.” Plus you have to be able to respond to and complete repairs, both routine and emergency ones, promptly to keep your tenants safe and happy as well as remain in compliance with the laws surrounding rental property maintenance.
Managing maintenance on your own also requires a certain level of planning and networking, too. Do you have a list of contractors to reach out to for any and every type of repair? How about backups in case they can’t or don’t respond? Keeping an up-to-date list of vendors requires research, planning, and coordination, all of which take up valuable time. So why not let someone else do it for you?
Knowing someone else can verify, coordinate, and complete repairs at your rental property on your behalf is a huge benefit of hiring a professional management company. Plus it means you don’t have to answer those 2 am calls about the heat not working. Another score for peace of mind!
Challenge #5- Legal Compliance
Property management is a highly regulated industry with laws and regulations that govern just about every aspect of managing a rental property. From Fair Housing laws to application screening laws to maintenance laws such as Warranty of Habitability and many, many more, landlords have to know them all. Ignorance is no excuse when sitting before a judge. And these laws are constantly changing, requiring time, research, and effort to ensure compliance at every level.
It’s easy to get bogged down in all of the laws and restrictions when trying to manage your rental solo. Why not choose the best possible resource to stay in compliance by hiring a property manager to do it for you? Property managers are required to stay up to date on all of the laws and they have their ear to the ground for any and all upcoming changes. They have the tools and resources available, such as legal documents, attorneys, and more to ensure legal compliance. That way, you’re not stuck in the trenches trying to navigate it alone.
Real Property Management Colorado’s sole focus is on managing residential rental properties in Colorado. With offices in Denver, Colorado Springs, and Northern Colorado, our team is capable and dedicated to helping thousands of property owners relieve the stress of managing a rental property. It’s simple: we take the burden off your shoulders while you reap the many benefits of owning real estate. So whether your biggest pain point is coordinating maintenance, collecting rent, or managing tenants, our team is here to support you! Contact us today to find out why so many rental property owners choose Real Property Management Colorado for their property management needs.
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