The Albuquerque real estate market is growing and property owners are making good money from their investments. The once underwater market is gradually recovering and very soon it will catch up with the rest of the country. It is worth noting that more people are now willing to live in the city of Vegas and the population is rising. Consequently, the demand for housing in the city is on the rise. It is also worth noting that a good number of the people living in the city cannot afford to buy homes and rely on rented housing for accommodation. This has also made property management in Albuquerque a booming business because many investors owning rental properties hire professional to take care of their investments.
Additionally, property renters are using local property managers to find houses to rent. However, it is worth noting that it is not a smooth ride for real estate managers operating in the city. In fact, property managers in the city go through some of the most difficult times in the country. If you are looking for a local property management company in the area, click here. Only consider companies that have a reputable track record.
The following are the common property management challenges that many real estate managers in Albuquerque face.
Top 7 Challenges of a Rental Manager
1. Competition Is Very High
The biggest challenge faced by many property managers in the city is high competition. The booming real estate market has attracted both local and non-local property managers and competition is on the rise. The once stagnant market with very few property managers is now the home for many real estate managers from different parts of the country. This means that those planning to venture into the business of managing properties in the city have to up their game and beat the rising competition. However, foreign property managers are gradually losing business to local property managers.
2. Real Estate Clients Have High Expectations
The real estate market in the city is reviving and clients (both tenants and landlords) have more expectations to be met than in the past decades. This means that those planning to venture into the business of planning of properties in the city have to work harder than before to meet the ever increasing demands of clients. Property management in the city has become more hectic and stressing that before.
3. Cases of Tenant Disputes Are Many
The majority of the people who rent properties in the city are visitors coming from different parts of the country and do not understand how the local real estate market works. This has resulted in an increase in the number of tenant disputes, giving property managers hard time to deliver quality services to their clients.
4. Vacancy Rates Are Still High
Just like in other cities in the country, property managers in Vegas make money from the rent they collect from tenants. Ordinarily, property managers in the city get a percentage of the monthly rent collected as their commission. Although the city real estate is growing, cases of vacancy rates are still high and property managers are unable to maximize management fees commissions.
5. Some Properties Are In Bad Condition
Another major challenge faced by property managers in the city of Vegas is that fact that some properties are still in the deplorable situation and not attractive to potential tenants. Some rental properties do not have good lighting, have dry pipes and some of them have stayed for many years without major repairs and renovations. It, therefore, becomes very expensive for property managers taking care of them to do repairs and renovations before listing them. The sad part is that there is no assurance of getting tenants even after doing costly repairs and renovations.
6. Excessive Modifications on Rented Houses
The increasing demand for rental properties in the city has made many landlords to make more modifications to their houses so that they can take in more tenants and make more money. Consequently, some of the once spacious rental houses in the city are not small and cannot accommodate even a small family. This has made it difficult for property managers operating in the city to meet the expectations and demands tenants and make sure they are satisfied.
7. Changing Rental Management Methods
The nature of property management is changing in many parts of the country and Albuquerque is not an exception. The traditional property management methods are fading away and online property management methods are taking over. For instance, many property managers are now doing their transactions online. This means that property managers who are not able to change to contemporary and modern management methods are finding it difficult to do business.