Part 2: Property management challenges and how to deal with them
Owning rental, stratified property and commercial property can be very profitable but it can also be very difficult.
There are many challenges that come with property ownership and more specifically with the management of stratified and rental property. In part two of three articles, Cornerstone Properties will look at the challenge of collecting past-due rent.
Getting Paid: Rent arrears and collecting outstanding rent
The tenant is legally responsible to pay the rent. However, for a variety of reasons, such as unforseen financial problems encountered by the tenants, sometimes the regular monthly rent payment is not available.
This can present a big challenge to the building owner, property manager and tenant.
Obviously, the goal is to collect the outstanding rent. Cornerstone Properties recommend their property managers deal with these matters promptly but also compassionately. By keeping lines-of-communication open between property manager and tenants, rent arrears, financial problems resulting from loss of employment, death, relationship problems, etc. can prepared for and contingencies put in place without isolating or alienating the tenant.
It is important to maintain a calm, responsive relationship with tenants that can be used to walk tenants through trying times and ensure arrears are collected. The last and most strenuous and expensive route a property manager can take is the legal route.
Cornerstone property managers are expected to review rent accounts on regular basis to make sure any arrears are identified at an early stage. If arrears are identified, approach the tenant with the primary goal being payment of the money owed, keep an open mind and amenable disposition while working to avoid humiliation or embarrassment of the tenant.