LeaseRunner recently released a rental industry report which revealed some interesting numbers about the rental market. As long time readers may remember, LeaseRunner is the brainchild of Joe Buczkowski, internet and business attorney and finance instructor at the University of Colorado, Boulder.
The report focuses on the difficulties that landlords, property managers and brokers face with handling all aspects of property ownership and/or management, including finding the right tenant, preparing leases, collecting rent, and every landlord’s nightmare, eviction.
When asked to name the most difficult aspects of property management, the majority of respondents note that finding the right tenant is the biggest challenge they face:
- 58% Finding the right tenant
- 17% Property maintenance
- 8% Tenant eviction
- 7% Managing lease transactions
- 6% Collecting rent
- 4% Cash flow
Managing property can take a big bite out of your time, as the replies seem to indicate:
- 65% Listing and showing property
- 14% Lease execution
- 9% Background checks
- 6% Rent collection
- 4% Rental application
- 2% Paper signature process (drafting, reviewing, signing)
The most common reason why tenants were evicted comes as no surprise – past due rent:
- 47% Past-due rent
- 37% Never had to evict a tenant
- 26% Violation of lease terms
- 11% Disrespect of neighbors or property
- 4% Unlawful living conditions
An interesting statistic derived from this report reveals that of those respondents who took the survey, 59% of them were in the position of managing property by circumstance or obligation instead of choice. These “Accidental Landlords” often lack experience in managing property.
The solution? Paperless property management. In reply to LeaseRunner’s question about their clients’ experience with their service, a positive trend can be seen:
- 73% Yes – The online leasing process has strengthened my relationship with my tenant
- 27% No – The online leasing process has not strengthened my relationship with my tenant
As the need for rentals continues to grow, a solution such as LeaseRunner could certainly make the process of renting property easier for both landlords and their tenants.
“With the surge of renters entering the market, landlords and rental industry professionals, not all of whom have experience managing property, are pressed to deal with more rental applicants, screenings, lease executions, and payments,” said LeaseRunner CEO Joe Buczkowski.
“High rents and low vacancy rates do present difficulties for renters looking for a place to live, but we should be equally concerned about the challenges faced by landlords, brokers, and property managers – many of whom are also the consumer who has been forced into managing property by circumstance rather than choice.”
Are you a LeaseRunner user? If you have tenants – even if you only have one tenant – take a look at LeaseRunner – it just may be what you’ve been searching for!