Updated: Jan 9
Successfully managing a multifamily property requires a lot of knowledge and experience. It’s critical to keep things running smoothly, since if problems are not resolved, it can lead to tenant dissatisfaction and ultimately move outs. This can be devastating to your operating income and cash flow, so whatever can be done to alleviate the problems should be done as rapidly as possible.
While some problems require outside help, like roof repairs or HVAC maintenance or replacement, many problems can be resolved with an easy fix on your own. The less you have to spend on outside contractors, the more income you get to keep. So, let’s look at some of the top problems that you can resolve on your own.
Problem #1: Not Enough Parking
One of the most common tenant complaints is that there isn’t enough parking available. While reserved parking can help tenants, their guests are often left to their own resources, driving around in circles and looking for parking on the street.
There is a solution used by many property managers at multifamily properties that actually helps increase revenues while reducing costs. It’s done through a new, luxury amenity that streamlines the booking and management of both resident and guest parking - and is easily handled by using available smartphone apps.
You are able to offer your tenants this amenity that makes parking easier, by assigning parking spaces and monitoring the lot, remotely being able to see violators who are parking where they shouldn’t be.
If you want to start a new revenue stream for your property, you can use this type of amenity to offer reserved parking close to their unit for an additional $20 or $30 per month.
Problem #2: Solving Rent Collection Problems
One of the biggest problems that property managers and property owners face is tenants who constantly pay their rent late, or at times, not at all. If this is an ongoing issue, and there are many tenants involved, it can impact the property’s cash flow and Net Operating Income (NOI). It that occurs, there may not be enough funds on hand at times to take care of needed repairs, pay salaries or handle other expenses.
In addition, it can be costly to evict a tenant who doesn’t pay their rent. Current estimates are that it costs anywhere from $3,500 to $10,000 for eviction. That amount includes legal fees, court costs, lost rent, locksmith fees, property turnover costs and many other costs involved.
There are 3 key screening reports that can help with the screening process to proactively avoid non-paying tenants. They include credit checks, criminal reports and eviction reports. If a person has prior evictions, there is evidence that shows that they will have additional evictions in the future.
Income requirements are usually 2-times the rental amount, but many property owners and managers are now requiring 3-times the income to rent to avoid non-paying tenants. For example, if the apartment rents for $2,000 per month, the prospective tenant’s monthly income should be $6,000, not $4,000. That cushion will help to ensure timely rental payments.