Navigating Multi-Family Property Challenges

3/17/2024 (Permalink)

Multi-Family Property Challenges

Navigating Multi-Family Property Challenges

Multi-family properties are a solid choice for real estate investing, but they also serve as valuable resources for families and communities. A multifamily property offers investors long-term potential for growth, particularly in areas where urban sprawl is transforming the residential landscape. Property management professionals also help people enjoy their communities by ensuring multifamily properties are safe, well-kept, and inviting.

Multi-Family Properties Are Good for Investors, Families and Communities

Although multi-family units are good for families, investors, and communities, some challenges come with managing these properties. Security concerns, maintenance, rent collection, and more present different dynamics when managing multi-family rather than single-family or commercial properties. Thankfully, knowledge and the right tools can easily overcome these challenges.

If you’re a property manager who serves tenants in multi-family dwellings, below are some of the top challenges for multi-family properties, along with solutions:

Conflict Resolution

Tenant conflicts tend to be more frequent when managing various units within a multi-family property. These properties often require tenants to live close to one another, and whenever you have many people in a confined area, you’re bound to run into conflicts.

Even small conflicts involving noise in another unit can boil over with time, so having a conflict resolution system is a good idea. However you decide to set up and implement this system, you should consider fairness and impartiality. This can be challenging when managing hundreds of relationships with different types of personalities.

Anonymity is another factor involved in conflict resolution for residential property management. Failure to protect the identity of a complainant could make the situation worse. At the same time, anonymous reports can be abused by a tenant with a grudge. Your goal should be to resolve conflicts without escalating situations further.

To overcome these challenges, draft a conflict resolution policy and have tenants agree to it upon signing leases. Follow these policies across the board in every conflict resolution scenario to keep treatment of tenant concerns consistent.

Tenant Screening

Tenant screening can be among the top challenges for multi-family properties simply due to the scale of the process. Property managers typically need to screen a handful of applicants in a single-family unit. This alone can be time-consuming, but tenant screening becomes all the more challenging when this process scales to include hundreds or thousands of applicants.

Fortunately, property managers have access to a range of technology tools to overcome these challenges. Property management software can aid in the screening process to speed things up using automation. Prospective tenants can submit required data online, and software can then process this data against various criteria to ensure a good fit. This saves time when dealing with large numbers of applicants.

Maintenance and Repairs

Maintenance and repairs can be another set of challenges when managing a multi-family property. Unlike a single-family property, where you only have to keep track of a single series of maintenance and repair concerns, multi-family properties can develop a range of issues over time in multiple units.

Due to the scale of multi-family property management, you will likely face year-round maintenance and repair concerns across multiple units within a property or complex. Addressing issues like restoration of water damage can be paramount to tenant satisfaction. Likewise, exterior concerns like paint or siding can present ongoing challenges that should be addressed routinely throughout the year.

To overcome these challenges, multi-family property managers are encouraged to implement an inspection system alongside property management software. Artificial intelligence built into today’s property management software can track when maintenance was last performed at a property and even predict maintenance needs before they become major issues.

Rent Collection

Rent collection can be another of the top challenges for multi-family properties. As with tenant screening, the scale of rent collection tasks can become daunting when working with hundreds of tenants monthly. In addition to collecting rent, property managers also have to issue receipts, look up tenant data, ensure cash flow is routed correctly, track tax information for accounting, and more.

Software can once again be a tool to overcome these challenges. Automated rent collection tools allow property managers to accept rent payments online, and receipts can be issued automatically. Using software tools, tenants can also look up their online payment histories 24 hours a day.

Many software apps for rent collection and multi-family property management also handle tax accounting information for property managers. This information can be imported into tax software directly, further saving time and ensuring data accuracy.

Contact SERVPRO of Arcadia for Professional Restoration Solutions for Multi-Family Properties

If you’re a property manager who needs a trusted partner for restoration services at multi-family properties, contact SERVPRO of Arcadia. We’ll be happy to go over SERVPRO cost considerations and provide answers to all of your questions.