Real estate is a profitable venture that allows you to grow your wealth exponentially. That’s why ninety per cent of all millionaires reached that status with real estate.
But be warned: it doesn’t guarantee profitability in any way. Many property owners incur losses with their rental property because of a few prevalent problems.
Property management problems and their solutions
Here’s what many people in the real estate industry encounter when handling property management in Cannington, WA.
Tenants leaving the property
A vacant rental property is very costly. Every time your tenants leave any of your properties, you have to start your search again.
It also means increased operating costs as you’ll have to spend money on inspections, renovations, replacements, and cleaning before the new tenant moves in.
Because of the financial costs and losses associated with a high turnover rate, it pays to address this problem as soon as possible.
Solution: Find out why they’re leaving
Cannington is an amazing place to live in because of its proximity to the Perth Metro. It’s not an undesirable area, so you have to dig deeper into why they’re leaving.
Many potential issues result in low tenant retention, such as:
- Cost of rent for comparable properties in the market
- Job loss
- Dissatisfaction with contract terms
- The decision to purchase their own residential property
- Lack of communication
To manage your property effectively, you need to do more than just collect rental pay. Providing the best service to your tenants is always a good investment.
Late payment and non-payment
Like with all businesses, you need to turn a profit. Else, you may find yourself talking to real estate agents to help you sell your property.
If you’re starting to build a real estate empire, a few months of “free” rent to your Cannington renters might prevent you from saving for the next investment. For some property owners, it can be a reason to lose their investment altogether.
Solution: Get quality tenants
We know that you want to start earning from your Cannington property as soon as possible, but it pays to have a stringent tenant screening process. This will minimize the chances of payment issues down the road.
Another potential solution is using property management software to automate payment reminders and collection. You may also add a late payment clause to encourage paying on time.
Managing tenant complaints
Did you know that your tenant can break the lease if they have a reason to do so? Unaddressed repair issues, for example, can make your property uninhabitable.
Unless you’re living in Cannington, WA, keeping tight contact with your tenants can be extremely hard. Enduring the pressures landlords face can become too much that you decide to sell your property instead.
Solution: Regular maintenance
No one’s going to respect your property more than you do. To prevent bigger and more expensive repairs down the line, invest in regular maintenance.
If you live far from the area, having professional property managers to manage all the nitty-gritty might free you from stress. The management fees you pay will be worth it with the right agency.
If buyers aren’t buying, turning a profit is harder. And as far as real estate is concerned, nothing’s more dangerous to your bottom line than a vacant unit.
As the landlord, you must be aware of how much you’re earning based on the hours you spend serving as your own property manager. This will help determine if you’re earning enough from your residential property.
Solution: Revisit rental property pricing and advertising strategies
The most obvious solution is to try various marketing techniques to attract tenants. Check what other property owners in the area have been doing.
Even if all units are occupied, the numbers may still not look as good as you want them to be. If this is your issue, a professional rental property management service can give you a more updated valuation of your leasing units.
The ultimate solution: Residential property management problems in Cannington, WA
Having an investment mindset is good, but it doesn’t prepare you for the challenges that landlords face. By availing of property management services, you can focus on making money with Cannington properties.
Property management in Cannington is made easy with honest, established property managers specialising in the Cannington area. But they don’t do just property management. They also help with advertising to get onboard a qualified tenant for your property.
With our team handling all technical aspects of leasing, you can focus on monetary investment. Contact us to request a free rental price check from the best property managers in Cannington today.