The adoption of rent control presents new challenges for property managers operating in regulated areas. If you are running a property management company in 2020, make sure to understand the rent control regulations in your state, city or municipality and how to operate within them. But what can rental property managers do when raising rents are not allowed in their real estate rental market? Here are a few tips on dealing with rent control to help you with:
1. Use property management software
Using a property management software eliminates the risk of human error since it can handle complicated formulas. A tool that captures data on vacancy rates, rental applications, rent growth, price tiers, and other real estate market trends helps property managers to identify patterns and respond quickly and efficiently while remaining in compliance with regulations. This way, they are able to stay competitive in the marketplace and achieve their financial goals. It is also important to use software that supports a diversified portfolio to enable your property management company to maintain stability in a dynamic market.
2. Reduce expenses
Under rent control, a property manager should optimize cash flow by looking for ways to reduce expenses. You have to look for ways to reduce costs such as reducing regular repairs like painting and cosmetic renovations.
3. Take advantage of hardship exceptions
Some cities have provisions that allow property owners to apply for hardship increases if the investment property is losing money. As a property manager, make sure you read the fine print and ensure your client takes advantage of every possible exclusion.
4. Manage profitable rental properties
In areas with rent control regulations, it’s important for property managers to focus on managing profitable investment properties. Property managers can use Mashvisor’s Investment Property Calculator to calculate the potential rental income and cash flow of an investment property before they choose to manage it. To find profitable rental properties to manage, you should also focus on working with experienced real estate investors.
5. Use Mashboard
One way property managers can deal with the risk of losing business is finding positive cash flow investment properties for their existing clients and leads with Mashboard. With this Mashvisor tool, you’ll be able to get more profitable rental properties under your management and grow your rent roll.
Start out your 14-day free trial with Mashvisor now to easily find more properties for your clients in 2020.
Related: How to Quickly Become the Best Rental Property Management Company in Your City
6. Work in different locations
While managing rental properties near you may be easier, you might want to broaden your horizons. This will help to diversify the properties you manage and reduce risk. Some cities may offer better opportunities than others.
Property management firms need to employ creative solutions to maximize the rental income as much as possible when raising rents is not permitted. This will also give rental property owners the confidence to hire you. The best property managers know how to maximize the returns of the properties under their management. If you have more questions, inquiries or need more tips on dealing with rent control, please don’t hesitate to contact us at 216-619-4387, send us an email at firstname.lastname@example.org, or better yet, visit our website at www.cpdhomes.com!