When you have a problem property, often the thought of throwing in the towel & selling the property comes to mind. We’re here to tell you that there is hope and to give you ideas to turn that property into (or back into) the profit builder you want.
To begin, it’s important to determine what “bad shape” level the property may be in currently. This information will help build ideas for detailed solutions.
We’ve gathered the top two issues that landlords and property managers face along with the best solutions we use for resolution.
1) Problem: High Vacancy Rates
Root Cause A: Wrong Tenants
Are you consistently dealing with late payments, evictions, or renters skipping out on their rent? If this is your issue, we suggest starting with a better screening process of your applicants. It costs about $1700 for the average eviction, making multiple evictions a year very pricey!
Additionally, just because a person has an eviction on their record does not mean they should be disqualified from your list of possible tenants. A majority of the middle class live paycheck to paycheck and any unexpected life event (like an accident, job loss or divorce) can dramatically eliminate their finances. One event can be explained and recovered from, so look for patterns of delinquency more than a single event.
Root Cause B: Declining Property
When you’re looking at the property do you think that it looks in despair? Would you want to live there? Think about the complaints you have heard; is anything consistent? If so, investing in updating the property or maintaining repairs will help you attract the right tenets.
2) Problem: Your Reputation
Google your address and the names of key personnel to find out what the internet is telling people about your community and their experience renting from you.
Solution A: Respond
Any negative comments that you find, respond to accordingly. Look at the complaint and if it’s valid, apologize for the mistake and thank them for bringing it to your attention. Next, take immediate action to resolve the issue. This needs to be a priority to ensure that complaints do not begin to accumulate for the same root reason. (More so if it’s an easy fix!)
This includes ANY complaints of bug issues; these will get costly quick so handle them with an expert without haste.
As you handle each problem with the proper resolution, you will gain the right tenants and have a profitable property to match!
All my best,
Picket Fence Properties, located in Windsor, CO is Northern Colorado’s Top Notch Property Management company helping owners with their rentals, income/investment properties and vacancies in Northern Colorado. Are you a owner of a home for rent or that you’d like us to manage? We help you have the perfect tenants in NoCO. Are you looking for somewhere to rent in Greeley, Loveland, Fort Collins, Wellington, Eaton, Evans, Windsor, Frederick, Firestone? Look no further, we have all your real estate and rental needs covered. Check out website for vacancies today.