Tenant & Occupancy Management Function of Property Management

A property can be nicely designed and in a desired area, but it will not be a profitable rental property if tenants aren't managed properly and occupancy maintained at a high level.

When tenants are not happy, they vacate at the end of their leases, or even sometimes before. Not only does this reduce income due to unpaid rents, it also increases costs for marketing to replace the lost tenants. Effective tenant management involves:

good rent collection practices;

responsive handling of repairs and maintenance;

consistent and fair enforcement of regulations; and

regular and informative communication with tenants

Failure in any of these areas will result in dissatisfied tenants, lower occupancy rates, increased marketing costs and lower return on investment. A property manager that does not consistently perform well at these duties will likely be replaced by the owner.