Managing a residential property comes with several challenges and responsibilities. Here are three of the most common problems property owners or homeowners face and what you can do to work through them.
LATE RENT AND UTILITY PAYMENTS
It’s no secret late rent is one of the biggest financial challenges property owners face. And with unemployment as high as 14.7%, it’s becoming even more common. Late utility payments, while less significant than rent payments, also create financial challenges. Because when any form of payment is late, you’re responsible for covering it. And utility bills can add up to thousands or tens of thousands of dollars a month.
Collecting payments on time is an existential challenge for the residential housing industry. There’s no one simple solution to collect all of your payments on time. But there is an easy way to get your on-time collection percentage higher than it is now: offer residents multiple payment methods.
When you accept payments through more than one channel, it becomes easier for residents to pay rent and utilities. And when it’s easier for residents to pay, they’re more likely to do so on time.
The most common payment options are online, ACH, check and over the phone. Some property owners who don’t have these capabilities in-house can work with utility billing companies to expand their rent and utility payment channels.
NOT HAVING ENOUGH TIME
The common challenge property owners face having too many responsibilities and not enough time. Time-consuming tasks like utility collection can take up precious resources that could be used for other tasks. Many in-house teams don’t have enough time for everything that needs to get done on the property.
Many property owners outsource day-to-day responsibilities to property management companies and utility billing companies, giving them back valuable time. With the help of property management and utility billing companies, property owners save on time and money while knowing important tasks are well looked after. The right utility billing company will help track utility costs, design a custom allocation and statements for your properties, and send billing alerts to you and residents in a property.
KEEPING PROPERTIES COMPETITIVE
Making your properties competitive with the market is essential to keeping units rented and tenant turnover low. But keeping a property competitive is easier said than done. There are several factors to evaluate.
The most obvious factor affecting a property’s competitiveness is rent. But there are a few ways you can use utilities to make your property more competitive without dropping rent.
While you can create a competitive edge with built-in amenities like smart home technology, garden space, in-unit laundry, dishwashers, and a swimming pool, you should also consider a strategy for billing utilities in a fair and accountable manner.
Managing a multi-family property comes with its fair share of challenges... Fortunately, there are always solutions for streamlining and optimizing property management. Diversifying your toolbox of solutions is likely to yield success. And if you need more support and resources, it’s worth setting up a consultation with a utility billing company as the next step.
Insulating water pipes is a quick and inexpensive way to lower water heating costs. The easy upgrade reduces heat loss and allows you to lower your buildings’ water temperature setting by two to four degrees. Plus, since water doesn’t take as long to heat up, less of this precious resource is wasted waiting for faucets and showers to get to the appropriate temperature.
This is a definite DIY job on smaller buildings that should take less than a day to complete. Check out the U.S. Department of Energy’s website for a comprehensive shopping list and step-by-step instructions.