Real Estate isn't easy, but it's a business that is always going to be around because people always need somewhere to live. And that means it's always a viable career or company away. But that doesn't mean real estate doesn't come without challenges. Maintenance issues, resident problems, and simply leasing out apartments can be headaches. But there are even more challenges at Tax Credit properties.
1. Certifications/Re-Certifications.
Tax credit properties only receive Tax Credits because they are granted by the state. Because of that, all properties need to certify applicants at move in and recertify them every year.
These recertifications require a huge amount of documentation, which requires a lot of time spent by the property manager. If left untouched, the owners of these properties can lose tax credits, and residents can lose their ability to stay on one of these properties.
2. Filling Vacancies.
Anybody who has ever owned real estate knows that vacancies are your worst enemy. You don't only lose the potential revenue from a resident, but also pay to maintain and pay the utility bill on the unit, and effectively increase the future interest paid on mortgage. And a tax credit property, things are even harder, because you need to certify applicants before they move in, creating an increase in the time it takes to fill a vacancy.
3. Maintenance Issues.
This isn't just a problem at tax credit properties, but all real estate properties. Every resident will eventually experience issues at some point, and having a maintenance staff member who knows how to fix air conditioners, washer and dryers, and plumbing, is invaluable. A good maintenance guy or girl keeps the residents happy, and in turn, the residents pay their rent on time and complain less.
4. Paperwork/Filing.
This might seem minor, but in a tax credit property, it's not. Every resident has their own folder and resident history, and that includes all their paperwork, including move-in files, leases, recertifications, and more. If the files aren't organized, it can be almost impossible to find required information on a resident when you need to.
And keeping track of the paperwork and organizing it is another matter altogether. Waiting to file documents can create a buildup that can take weeks to catch up on, especially with move-in files. Don't get behind on paperwork in a tax credit property, or you will pay the price.
