How Expert Property Managers Streamline LIHTC Compliance and Improve Affordable Housing Operations
Rental properties created under the Low Income Housing Tax Credit Program (LIHTC) are a great way to provide affordable housing for low-income US citizens. If you own one, you may have noticed that there’s a high demand for such a type of residence thanks to surging real estate prices.
The high demand for these rental properties makes them a great investment. However, managing day-to-day operations is another matter altogether. To make things easier, you can hire a property manager to handle everything for your blended occupancy, low-income housing. Here are eight reasons to hire a property manager in affordable housing properties.
1. Professional Applicant Screening for Qualified Tenants
When it comes to affordable housing, the qualified tenants are those who belong to low-income households. The classification varies from state to state, but the general threshold for a low-income household is one that falls below 200% of the federal poverty threshold. What does this fact mean for applicant screening?
The threshold provides clear guidelines for who should get housing under LIHTC. Screening for applicants that fall under the criterion takes a lot of effort and resources, especially with the LIHTC tenant certification process. There’s also the other side of screening, which focuses on the character of the tenants and how reliable they can be when it comes to caring for the property. A professional property management team can take care of the entire process.
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Property managers are aware of the law and how it applies to rental properties. This knowledge is one of the biggest reasons to hire a property manager in LIHTC homes. Even during the screening process, these professionals know how to navigate rules to avoid instances of discrimination, especially since applicants are from low-income households.
During employee hiring in the rental industry, make sure to work with a property manager who is qualified and experienced. These qualities are what give you confidence that the property manager knows the law. For LIHTC in particular, you’ll need to find property managers who have training for the LIHTC tenant certification process.
3. Handles Financial Transactions and Reports
Given the stringent regulations around low-income housing, it’s extremely important to keep accounting and bookkeeping records accurate. Most property investors don’t have the knowledge or the time to handle these financial transactions themselves. Thankfully, a property management firm can help you.
These companies have dedicated processes and teams that handle the bookkeeping, accounting, and other aspects related to the finances of a rental property. These property managers can also provide consolidated reports and documents required for legal or business purposes. That way, you won’t have to worry about cash distributions, tax payments, and other matters.
4. Rent Collection and Eviction Made Easy
In regular rental properties, rent collection is already challenging. This concern is heightened in LIHTC properties given the monthly income of tenants. Working with a property manager can make rent collection easier. These firms can set up structures that allow leeway for some tenants, and they can use software that makes it easier to collect rent. One of these programs is ExactEstate, which has an online payment functionality for more convenience.
If rent isn’t paid and eviction is due, then the property manager can be the one to take care of the latter process. These people know how to handle eviction in a way that saves money and time while also avoiding legal trouble.
5. Top-Notch Marketing Strategies
The demand for low-income housing is almost always high because there are too few homes. However, this fact doesn’t mean that you should neglect marketing efforts. Your property still needs to be seen by potential tenants so they can contact you and begin the screening process. Property managers can take care of this need with professional marketing strategies.
As experts in the field, these firms know what it takes to advertise properties in the right channels. Property managers also know how to use programs like ExactEstate to help with marketing efforts and reach a wide audience.
6. They Handle Maintenance and Repairs
The sheer amount of work needed to maintain the rental property in livable conditions is one of the biggest reasons to hire a property manager in blended occupancy housing. These experts can handle daily operations such as janitorial work, garbage disposal, and tenant requests.
In addition, hiring a property manager gives you access to a network of other specialized professionals. If there are issues with specific components or areas of the property, the team can find the right electrician, plumber, etc. to take care of the issue.
7. Buffers Between You and Tenants
Maintaining a professional relationship between you and your tenants can help with retention. However, issues may arise when you become too personally involved with other occupants. One way to keep a professional distance between you and your tenants is with the help of property managers.
These managers act as middlemen where tenants can make complaints or raise issues about the property and how it is managed. Property managers know how to handle these situations professionally and deliver solutions that satisfy most or all parties.
8. Take the Burden From You
The overall benefit of working with property managers is how they can take on the demands of owning a rental property. Since these professionals can handle applicant screening, rent collection, marketing, maintenance, and more, you’re free to spend your time as you see fit. All you have to do is watch your investment prosper under their care and make a few decisions as needed.
How to Hire the Right Person for Property Management
Not all property management firms are made equal. Some excel in certain types of homes more than others. Before working with one for low-income housing rental properties, you’ll need to consider:
Experience: How long have they worked with LIHTC housing? What types of rental properties have they worked on before?
Knowledge: Is the firm knowledgeable about LIHTC protocols? Do they have training for the LIHTC tenant certification process?
Capacity: How many other properties are they currently managing? Do they have the manpower and resources to handle the demands of your LIHTC property?
Make Things Easier for Property Managers With the ExactEstate Software
Once you’ve hired a suitable property management firm, help make their operations more seamless and streamlined with software like ExactEstate. This property management program is all they need to handle the majority of daily operations. That includes rent collection, marketing on variousplatforms, tenant requests, and accounting.
ExactEstate, in particular, is loaded with features and functionalities that go above and beyond what you’ll find in other software. This program has increased security measures to protect tenant information, has customizable programs for specific workflows, and a resident portal where occupants can make payments or send requests. These capabilities are just the beginning of what you can do with the ExactEstate software.
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With a reliable property management team and a comprehensive property management software, you can improve the operations of your low-cost rental properties. To schedule a demo of how the ExactEstate software works, contact us today!
