Are You Unhappy With Your Community Management Association?

Working and living with a management company is a complex matter. It can bring peace of mind because you can forget about complex administrative duties. However, it can also cause more stress than it should.

The main reason why the latter is a common occurrence is improper practices. A bad management firm will create more problems than it solves. Thankfully, you’re not alone, and there are a few things you can do to solve that.

What are the most common complaints about community management companies?

There are many articles going through the staple complaints people have toward their management company. A simple Google search yields several results, but some are definitely more common than others.

If you’re unhappy with your association, chances are it’s because one or more of these reasons. If that’s the case, then we have good news for you; they’re easier to solve than you might think.

Lack of communications

The most common complaint people have from their management company is that they feel like they don’t care about them. That’s easy when the company doesn’t respond to inquiries and requests in a timely manner.

Delays in problem resolution

Property management is complicated, as you need to keep many variables and services in mind. Bad tactics result in problems going unresolved and homeowners feeling neglected. Most commonly these problems are quick to fix, but inefficiency prevents that.

Lack of respect toward homeowners

Dealing with a community is difficult, and management companies can deplete their patience quickly. The result is that they tend to treat everyone rudely, even those who didn’t present any issues before.

Maintenance inefficiency

Maintenance problems are the easiest way to make an unhappy community. Not only does it feel like neglect, but it also makes the entire residence look deteriorated. Even smaller problems add up quickly.

Bad vendor selection

Finally, not hiring the right vendors breeds a plethora of other issues. Poor results and sketchy staff makes the board lose the community’s trust, so having a good contacts database is vital.

What can you do about it?

We’ve helped several clients resolve their issues with their management company. Most of these cases came from the same roots: choosing the wrong company and a lack of communication.

The latter is easily the most important, as it can also exacerbate other problems unnecessarily. Therefore, we have three tips from our own experience for how you can rid yourself of that stress.

Screen your management company

Make sure you ask for previous references and evaluate the company in the areas that you care about the most. That’s the first step to guarantee community satisfaction from your management company.

Communicate with everyone

Any good company has the right communications channels set up. Going for a firm with plenty of options to get in touch with them should be a priority if you want to avoid issues.

Set clear rules

Make sure everyone knows what they’re supposed to do, both the company and homeowners. Transparency and compliance helps in keeping everyone happy.

Rental Property Investment Tips for Nashville

Why keep money in banks when you can invest the smart way? Investing in rental property can be a good economic decision that can help you save more. It’s easy to find experts recommending rental property investment with the benefits including financial leverage, easy property management, and demand.

Are you thinking of stepping on the pedal too to save more money?

Property management in Nashville continues to look promising. According to the Nashville Business Journal, Nashville is a great real estate market to consider right now due to its popularity peak.

That said, rental property is a significant first-time investment, even if you’ve done it in another city already. Therefore, we’ve compiled several tips to make property management for Nashville easier.

Assess your finances before trying anything

Even Investopedia’s tip list mentions this within its first entries. You need to make sure your financial stability can support this investment. First, ensure you pay off all debts.

Then, evaluate your responsibilities as a landlord. That doesn’t mean just focusing on the right mindset and nothing else. You need to understand the expenses required for property management in Nashville, like CAM (common area maintenance) and HOA fees.

Identify your target investment

After you’re sure you can do it, you must recognize what to invest in. That means picking a neighborhood and the type of property you want to buy. Thinking about the kind of tenants you’d prefer is also useful.

However, it’s not just picking between apartments and houses. You should assess the entire space: number of rooms, construction materials, parking, size, and more.

Research the market to find opportunities

The most important part of making any investment is to assess trends and chances. Forecasts related to property management in Nashville are vital to help you make your final choice.

Right now, Nashville is expected to increase in home prices for over 5%, totalling more than 9% after last year’s rise.

Calculate your cap rate

Your capitalization rate is your possible profits from your property’s next income. The Balance defines it as the return rate you can make from a cash-bought house.

To calculate it, you must compare your renting price, expenses, and its purchase price. After subtracting your expenses from its rent, divide the result by your purchase price. The result is your cap rate percentage.

A word of caution though – there’s no “right or wrong” cap rate. It’s up to you to decide what makes an attractive return.

The 1% rule

As a side note, the same article from The Balance also mentions the 1% rule. It basically says that, if your monthly rent makes up (sans expenses) is at least 1% of its price, it’s worth looking more into it.