Property managers need to be conscious of how rental law changes are going to affect the way they handle the units they’re responsible for.

Even prior to the more tenant-focused changes to rental laws, experienced property managers have a set of standard practices that ensure the spaces they handle are habitable, and safe and are overseen by managers with the resources to address repairs and maintenance:

• Before a rental agreement is signed, property managers are expected to inspect properties for faults and recommend necessary repairs to the provider before the renter moves in.
• During a rental agreement, renters rely on property managers to keep them up to date on inspections, as well as to use reliable and qualified tradespeople for repairs.
• When a rental agreement ends property managers are required to make arrangements for the return of keys, even if an agreement ends over a holiday.

These practices need to be followed as well as updated relative to the aspects of the rental laws which have changed to allow renters more flexibility within the contract, such as:

• More leeway to address overdue rent payment: renters can pay their overdue balance within fourteen days, wherein any notice to vacate issued in the period is invalid (this applies the first four times over a twelve-month period).
• A longer list of allowed rental space modifications: certain changes to a rental property like hanging picture hooks or mounting child safety gates can now be done without prior permission from the rental provider.
• Rental agreement termination causes: providers need to state a reason to end a rental agreement, and these notices to vacate can only be given at the end of the first fixed term of a rental agreement. 

These adjustments to property managers’ ways of working are only some of the considerations that property owners need to bear in mind as they progress through their investment journey, especially if they channel their resources into a long-term rental property. 

Steady demand, less risk of turnover and cheaper maintenance are all benefits of long-term rental property management, which need to be retained even in spite of rental law, tenant and circumstance changes. Property managers must be prepared for different scenarios to ensure that their clients’ investments continue to generate returns over time.

Why are property managers important?

Property managers play a crucial role in ensuring that rental properties stay habitable and profitable for years to come. Professionals offer a helpful solution to property investors who live far from their investment properties, or if they simply prefer not to be as hands-on with their property. 

Property managers behave as the eyes and ears of the rental provider on the property, so their responsibilities are wide-ranging and varied based on the needs of the space. 

This task list can include supervising and coordinating building maintenance, overseeing work orders, plus carrying out light repair and cleaning work. 

On the management side, property managers handle tenant concerns and complaints, and work on advertising, showing and leasing vacant units. Property managers collect and deposit rent while communicating regularly with the rental provider on the condition of the property.

The scope of work that property managers are expected to allow tenants to do has also evolved due to changes to rental laws. It’s crucial for property managers to fully prepare for the new legislation now in place by being aware of the challenges they may face this year. 

5 key challenges that property managers will face

We’ve shortlisted common issues that property managers will continue to face this year. Understanding these challenges can help property managers prepare for them and effectively address them.

1. Screening tenants

Antisocial, difficult or potentially dangerous tenants are a constant risk, so property managers need to provide owners with more information about enquiries sent.

With many looking for homes, especially in popular neighbourhoods, property managers need to be equipped with the tools to do in-depth background checks. Rental law changes allow tenants more freedom, so property managers need to ensure these aren’t abused.

Aside from asking about past places they’ve lived, property managers need to ensure that they attract the right people for the rent roll. Good tenants have a range of different qualities, and these all make life easier for the rental provider as it helps take away the risks of bringing a stranger taking residence in one’s well-taken care of investment property.

Good tenants ease the burden of the property manager and are recognisable by the small positive habits they have such as paying rent on time and treating the property as their own. Good tenants also tick off the boxes of taking note of inspection dates, keeping up with maintenance and ensuring good conditions regardless of how long they’ve been staying. 

Property managers need to find and prioritise tenants who respect the property they are living in. Good tenants communicate honestly with property managers and providers to make sure the property remains in good condition so it stays habitable for years to come.

2. After-hours availability

Offering ‘good customer service’ may translate to 24-hour availability if expectations are not set at the beginning of the contract. 

Coordinating, listening and maintaining properties do not stop when offices close, and tenants generally expect their property manager to be able to respond quickly despite the time. With hybrid work arrangements increasingly common, tenants may be home often and think they need more assistance on items than anticipated. 

Issues like no heat, no air conditioning or water leaks are some of the issues that may need to be addressed after hours, which aren’t necessarily urgent but can be a challenge if they reoccur. Emergencies like broken fixtures, electrical malfunctions or cracked windows come with hazards that property managers need to handle as they come with significant risks.

3. Time management challenges

Property managers need to attend to multiple tasks that correspond to different aspects of the job, so they need to be able to allocate their time accordingly.

Property management covers a wide range of responsibilities that are bound to pile up and take over other tasks if they are not efficient about how they use their time. 

When in a tenant-facing post, not attending to a concern right away could spell disaster–in the shape of a maintenance concern and a scathing review on the Internet which damages the property’s reputation for future tenants. 

Some time management tips like prioritising emergencies, communicating effectively with tenants and delegating tasks when necessary are some ways that property managers can address this challenge, and be more efficient about their time.

4. Navigating evictions

The new rental laws provide specific circumstances wherein rental providers and property managers can send notices to tenants, so managers need to stay aware.

Minimum notices to evict have changed somewhat, but they all lead back to making sure properties are safe and secure for all tenants. Some of the main reasons a property manager cannot provide a notice to evict are:

• Requesting repairs,
• Asking to have a pet, and
• Clarifying or challenging a rent increase.

The regulations detail circumstances valid for evictions, most around repeated non-payment of rent, causing serious property damage or using the property for illegal purposes.

5. Social media complaints and bad reviews

Everyone has a voice on social media, so this means bad reviews are par for the course and property managers are encouraged to find constructive ways to respond.

Negative comments can be sent to even the most conscientious property managers. When left unchecked, these harm the reputation of the property (and eventually lower the profitability of the property when enough prospective tenants are turned away by complaints). A few ways that property managers can deal with social media complaints are:

• Stay professional. Responding to a comment kindly while inviting them to email the details of their concern shows that the property management genuinely wants to solve the problem, but keeps more people from seeing all the details unnecessarily.
• Be proactive. Inviting suggestions via email and providing comment cards shows renters that management knows people want to be heard and want to cut off any frustration before it turns into a complaint online.
• Monitor reviews. Responding to positive and negative feedback on public platforms in a timely manner shows that management pays attention to tenant sentiments.

Being aware of the property’s online reputation is crucial because prospects do listen when friends and family mention their experiences with the management agency handling it, and they’re likely to read reviews before they sign the lease. Over time, too many negative reviews ruin impressions of the property and lower the profitability of the space for rental income.

Property managers face several challenges as the year progresses, but these can be addressed with preparation, attention to detail and staying up to date on developments in the industry. Follow our website for more blogs on the latest real estate trends and news.