New Buildium Research Shows Maintenance, Problem Tenants Are Top Concerns for Rental Property Owners
Buildium, the property management solution for real estate professionals, released the findings from its second annual Rental Property Owners Survey today, conducted in conjunction with subsidiary All Property Management. The report sheds light on how rental property owners manage their investment properties, their relationships with property managers, and the needs of their tenants.
The findings show that maintenance is the single biggest source of stress for property owners, with 61% reporting it as a pain point, and 41% reporting that they’ve been hit worst by maintenance upkeep costs in recent years. A full 60% of owners report that maintenance concerns are the top reason that they hired a property manager.
The second most common stressor for property owners is dealing with tenants, with 39% reporting issues with difficult tenants impacting them in the past few years, and 52% naming problem tenants as a top stressor.
Last year’s Owners Survey uncovered a difference between intentional investors and “accidental” (unintentional) investors. This year’s data revealed that 47% of owners self-identify as intentional investors, while 38% identify as accidental investors. Key differences between these groups include portfolio size, property type, and how they acquire property.
Key findings from the 2017 Owners Survey include:
- Maintenance and tenant management continue to be the two biggest stressors for a majority of property owners.
- The top 3 traits that property owners seek in a tenant are responsibility, good credit, and cleanliness.
- Accidental owners are less satisfied with property ownership than intentional investors.
- Most owners continue to buy or keep property as an investment; but owners of multi-family properties are more likely to be investment-minded.
- Maintenance issues and emergencies are the #1 reason why owners choose to hire a property manager.
- Owners look to online sources first for information on how to make money from property ownership.
“Rental property is one of the soundest investments there is,” said Michael Monteiro, co-founder and CEO of Buildium. “We can see from this report that owners are, by and large, very satisfied with their investments, and expect to grow their portfolios. Some will choose to manage those properties themselves; but others will be looking for help, which represents a tremendous opportunity for property managers who make the effort to understand them and their needs.”
A full copy of the 2017 Rental Property Owners Perspectives Survey can be downloaded from the Buildium website.