Investing in real estate is a potentially profitable endeavor, however; it needs a lot of work to maintain it or improve its value. Real estate property management requires regular maintenance or the property may deteriorate, electricity may fluctuate and pipes may leak.
The Importance of Property Maintenance
Real estate property management is all about the small details; from the old pipes that may leak or the poor insulation. Leaking pipes, weak foundation of walls, old flooring, peeling paint and poor insulation have a negative effect on your property. These may deter potential occupants from renting your space.
A manager that implements regular maintenance guarantees the quality of the services they provide. It makes sure everything is working; from the faucets to the lights to the insulation. Lack of maintenance increases the cost of running the real estate because parts may need frequent fixing or replacement.
Keeping Tenants Satisfied
Real estate property management is not just about filling vacancies, if a manager does not do regular maintenance, their tenants will not feel welcome or happy staying. An occupant that sees problems with their space such as paint peeling off, a drab façade or poorly maintained wirings may want to leave as soon as the contract is over. A tenant may end up only staying because they have no choice. You don’t want someone to rent a place simply because they have no alternatives; you want them to stay because they want to.
By keeping your occupants spaces in good condition through renovating, repairing and maintaining, you develop good rapport. Forming a good relationship with occupants reduces complaints and quarrels, improves rent collection and encourages them to stay longer.
Improving Property
Real estate property management requires managers to renovate and improve spaces. Improvements can be major or minor; in some cases, simply repainting rooms for a fresh look. If necessary, check the foundation, fix insulation, rewire or replace old pipes to keep real estate in good condition for a longer time.
Property management is a tedious endeavor, because you have to manage everything from the biggest to the smallest details. It helps that you hire someone to help run your property. Management companies enable you to focus on what you do best, improve the value of real estate and fill occupancies.
Real Estate Property Management
Sunday, May 29, 2016
Thursday, May 12, 2016
How to Choose the Right Property for Your Needs
Everyone talks about how profitable it is to invest in real estate. And yes, if you make the right choices at the right times, it most certainly is! But it’s not guaranteed. You need to do your homework, a lot of research, and be prepared to either work very hard at maintaining your property, or hire a good residential property management company. This is not a case of buying a property then just sitting back and letting the money roll in. Investing in real estate is a serious commitment.
Whether you’re a first time real estate purchaser or a seasoned veteran, here are some tips that can benefit both of you:
Buy Within Your Budget: This decides which areas and in some cases, what types of real estate you can invest in. To nail down your budget, make an appointment with a lender or mortgage broker and get pre-approved. Then it’s smooth sailing.
Your Price Range: This will depend on whether you choose to manage the property yourself or hire a real estate property management company. You’ll need to add in additional costs if you choose a management company (but you’ll save yourself a lot of headaches & money in the long run!).
Type of Property: Houses, duplexes, low rise or high rise buildings, condos, townhouses, open land…it all depends on what you can afford, what you would feel comfortable with, and whether you plan to handle the property yourself or hire a real estate property management company.
Where to Buy: If you plan to manage your own property, try to find something close to home. If a furnace breaks down in the middle of the night, it’s easier if it’s only a 10-15 minute drive. If you plan to hire a residential property management company, distance doesn’t matter as they’ll handle everything for you.
Investment Area Options: Make up a short list of areas that fit into your price range, and suit your management choice. Call up and talk to agents in those areas to find out what is available to buy that fits into your budget.
Do Your Research: Once you’ve decided on the area you’d like to buy in, check out the prices of homes that have been recently sold in and around that area. This gives you more information on a property’s value and what people are willing to pay.
Do In-Depth Research: Especially if you’re considering buying real estate in an area you’re unfamiliar with. You can get a lot of information on more than price from lenders and mortgage insurers. They usually have a lot of valuable data on different locations and property developments. You can also check with the local police regarding crime statistics.
Match Property to People: The property you invest in should meet the needs and demographics of the renters in that area. Near colleges and universities, property with lots of bedrooms would be in demand. A house with a big yard close to schools and parks is best suited to families.
Property Age & Condition: If you need to replace a roof or furnace within the first few months of ownership, that takes a major bite out of your profits and can derail your cash flow. Before you purchase anything have a professional building inspector thoroughly check the place over so you know what you’re getting into.
Big Local Changes: Are there any big plans in store for the area you wish to purchase in? Check with your local council for this kind of information. If major long term construction is planned it may be hard to find or keep tenants. However, if you’re looking at light rail transit or a by-pass coming in, you may see the value of your property increase sooner than expected!
If this is your first foray into investing in real estate, a good start might be a house or a condo. Condos are basically low maintenance outside as the condo association handles all that. You just maintain the interior. In the case of a single family house, it usually attracts long-term renters like couples and families. With two adults there are usually two pay cheques coming in so they’re more likely to be financially stable and pay their rent regularly.
Either way, the tips we’ve offered should be of some help to enable you to buy the property that’s best suited to you. When you’re able to, hire a reputable real estate property management company to handle it all for you…and then you can sit back and watch your investments grow!
Whether you’re a first time real estate purchaser or a seasoned veteran, here are some tips that can benefit both of you:
Buy Within Your Budget: This decides which areas and in some cases, what types of real estate you can invest in. To nail down your budget, make an appointment with a lender or mortgage broker and get pre-approved. Then it’s smooth sailing.
Your Price Range: This will depend on whether you choose to manage the property yourself or hire a real estate property management company. You’ll need to add in additional costs if you choose a management company (but you’ll save yourself a lot of headaches & money in the long run!).
Type of Property: Houses, duplexes, low rise or high rise buildings, condos, townhouses, open land…it all depends on what you can afford, what you would feel comfortable with, and whether you plan to handle the property yourself or hire a real estate property management company.
Where to Buy: If you plan to manage your own property, try to find something close to home. If a furnace breaks down in the middle of the night, it’s easier if it’s only a 10-15 minute drive. If you plan to hire a residential property management company, distance doesn’t matter as they’ll handle everything for you.
Investment Area Options: Make up a short list of areas that fit into your price range, and suit your management choice. Call up and talk to agents in those areas to find out what is available to buy that fits into your budget.
Do Your Research: Once you’ve decided on the area you’d like to buy in, check out the prices of homes that have been recently sold in and around that area. This gives you more information on a property’s value and what people are willing to pay.
Do In-Depth Research: Especially if you’re considering buying real estate in an area you’re unfamiliar with. You can get a lot of information on more than price from lenders and mortgage insurers. They usually have a lot of valuable data on different locations and property developments. You can also check with the local police regarding crime statistics.
Match Property to People: The property you invest in should meet the needs and demographics of the renters in that area. Near colleges and universities, property with lots of bedrooms would be in demand. A house with a big yard close to schools and parks is best suited to families.
Property Age & Condition: If you need to replace a roof or furnace within the first few months of ownership, that takes a major bite out of your profits and can derail your cash flow. Before you purchase anything have a professional building inspector thoroughly check the place over so you know what you’re getting into.
Big Local Changes: Are there any big plans in store for the area you wish to purchase in? Check with your local council for this kind of information. If major long term construction is planned it may be hard to find or keep tenants. However, if you’re looking at light rail transit or a by-pass coming in, you may see the value of your property increase sooner than expected!
If this is your first foray into investing in real estate, a good start might be a house or a condo. Condos are basically low maintenance outside as the condo association handles all that. You just maintain the interior. In the case of a single family house, it usually attracts long-term renters like couples and families. With two adults there are usually two pay cheques coming in so they’re more likely to be financially stable and pay their rent regularly.
Either way, the tips we’ve offered should be of some help to enable you to buy the property that’s best suited to you. When you’re able to, hire a reputable real estate property management company to handle it all for you…and then you can sit back and watch your investments grow!
Saturday, March 19, 2016
Why Communication is the Most Important Skill of a Property Manager
Communication is the key to
success in almost any field, but it’s especially critical when it comes to
effective real estate property
management. You see, this job is all about people – the people you rent to,
the people you answer to, and the many, many people you interact with to
keep your properties maintained and repaired. A property manager is actually
the nexus of communication for residential
property management – everything
flows through you.
It’s not a job for everyone.
You need to be able to talk to people from every culture, from all walks of
life, and with every kind of personality. You’ll find yourself explaining a
repair cost to an owner, standing in front of a judge regarding an eviction
notice, negotiating with maintenance and repair people, and listening carefully
to a tenant who may be frustrated, crying, or downright angry. And you must do
this while maintaining a calm and professional manner. If you speak more than
one language, it’s a major plus.
Here are some of the skills a
property manager needs to enable good communication:
Be a good listener. Don’t be
thinking about what else you need to do, or thinking ahead to when you can take
that lunch break you missed 2 hours ago - just listen. This person needs to be
heard, and needs to ‘feel’ heard.
Understand what is being said
from the other person’s point of view. Learn and empathize with how it impacts
the person giving you the information.
Figure out what action must
be taken based on what you just heard and understood. If you’re unsure what as
to what action is needed, ask questions until it is clear to you.
Express the action needed to
those who must deal with the issue, whether it be tenants, repair or
maintenance people, or the owners. Tell them in terms they’ll understand so
they feel confident and comfortable doing what needs to be done. Be precise and
be clear. Give them all the information they need as well as a set time line.
Good communication for real estate property management,
however means more than just listening and talking, it also encompasses written
letters, emails and texts.
With owners, determine what
form of communication they prefer, what information they want and how they want
it, as well as how often. Let them know when any issues arise with the property
and how you plan to handle them. They need, and deserve, honest and timely
communications. With tenants, emails and texts are effective for giving
information and updates as they can be printed, or referred back to for
clarification. Flyers are also helpful in elevators, laundry rooms or common
areas.
At all times and for
everyone, answer the phone as soon as possible. There is nothing more
reassuring than a friendly, helpful voice on the other end of the line. Respond
to emails as quickly as you can, or set a time every day to deal with them. If
you’re having repairs done, send out short updates so all concerned know you’re
taking care of things. Be consistent in your communications – so owners and
tenants know what to expect from you.
For tenants and owners alike,
clear, reliable communication with their property manager offers a feeling of
security. Owners know their investment is being handled appropriately, tenants
are comfortable contacting you and feel safe in the space they call their own.
Happy tenants translate into long-term tenants and that in turn means happy
owners! So as you can see, when it comes to residential
property management, success depends
on a property manager with good communication skills!
Ways to Maximize the Profit of Your Property
When you have an
income property, you want to get as much money as you can out of it. So it pays
off to make the extra effort to be creative or to be diligent – and in some
cases, come up with an initial investment to get things rolling. Whether you
deal with residential
property management or corporate
property management many of these suggestions can help you to get more
money coming in.
RENT OUT UNUSED
STORAGE/PARKING SPACE: If it’s in a warehouse and it’s a large space,
section it off and rent it out for separate smaller storage spaces – if it’s a
smaller space, rent it out as is for storage. If you have a huge unused parking
space, advertise monthly parking in specific sections, painting the lines for those
areas differently. If the storage space or garage space is at a residential
property and is not being used by tenants, rent it out to non-tenants. Is there
a business nearby that could use more parking or storage?
TURN
WALLS/FENCES INTO ADVERTISING SPACE: Make that empty wall space or fence into
an advertising mecca by renting it out to local businesses. It can be as simple
as hanging a banner or as detailed as having a professional painter make that
space into a marketing mural. Use as many walls or fence lengths as you’re able
to. It’ll brighten up a barren industrial property, and can bring in hundreds
of dollars every month.
ADD LAUNDRY FACILITIES: If you’re looking to attract quality tenants,
give them what they want: in-unit laundry. It costs a bit at the beginning, but
will pay off in the long run as you can raise the rents, enjoy faster rentals,
and get those quality long-term tenants you always wanted. They’re also a good
incentive. Offer the laundry facilities only to those who sign a 2-year lease
instead of a 1-year lease – the convenience may even keep that tenant beyond
the 2-year commitment.
ADD/UPGRADE COIN-OPERATED LAUNDRY FACILITIES: If you haven’t got laundry facilities on-site for a residential property,
then install them – even if it’s just one washer and one dryer for a small
property. No-one likes piling their dirty laundry into a car and going out to a
laundromat, if they can drop them off downstairs, then just conveniently pick
them up a hour or so later. If you already have a laundry room, make sure it’s
regularly cleaned and maintained. In both cases, a change machine is a welcome
addition!
BUY A KEYMAKER – Depending on the size of
your property or properties, you can save a fortune making your own keys. For
the initial investment of a key maker, and ‘No Duplication’ key blanks, you’ll
be able to replace any key at any time – even Sunday night after a tenant’s
keys just hit the elevator shaft floor! You can charge for replacement keys –
say $5 each - and never worry when a tenant doesn’t turn in their keys. Just
buy a new lock and make the extra keys yourself.
INSTALL VENDING MACHINES – Could be
coffee, soft drinks, chocolate bars, candy, sandwiches – you choose what would
be most appropriate for your space. In a factory or office building, all would
be probably be welcome in a lunchroom. In a residential setting, they might be
found in a laundry room or recreation room or even in back hallway to the
parking lot. A workout room would be a great setting for a fruit juice
dispenser. All translate into more
income for you.
Making extra money in some of these ways does come with an initial
investment, but if properly handled and maintained, can be constant additional
revenue streams which add to your profit margin. While there may be more
options for residential
property management people to take advantage of, there are enough to perk
up the income of corporate properties as well. Choose one or several of these
ideas and maximize the profit of your
property!
The Top 5 Problems Landowners Experience
There are five
main problems that landowners have to deal with when they rent or lease their
property or properties. These are problems that can be easily solved with the right real estate property management company.
However, some people try to save money by handling these challenges themselves,
and end up wasting valuable resources and burning themselves out in the
process. If you see yourself struggling with some of these issues, this might
be a good time to take a step back and reconsider your choices when it comes to
property management.
TIME - You only
have so much time in a day. If you’ve invested in
property and still have a full-time job, you don’t have a lot of time left over
- especially if you have a family - to give your property the attention it
needs. Even if you are retired or semi-retired, there’s a lot of work to do
when it comes to the day to day issues of renting and maintenance. It’s a 24/7
commitment. Your time is better spend arranging financing for necessary
renovations or looking for new investment opportunities.
DISTANCE – If
you don’t live near your rental property, checking on it and even interviewing potential
tenants takes a lot of time and effort. Now add in dealing with tenant
complaints, maintenance issues, emergencies, even just collecting the rent on
time. If you manage your own property or properties, you’d need to live close
by to be efficient and time effective. And the best investments may not be
right around the corner. This limitation can affect your long-term success.
INEXPERIENCE – If you don’t know anything about residential
property management, you’re in for a series of nasty surprises. There
is so much involved that you’ll be overwhelmed just finding out all you have to do. And you not only have to do it, you need to do it quickly,
correctly, and legally. Hire a bad or lazy repair person, or take too long
filling vacancies and watch your profits melt away. Legal errors will cost you
if you don’t understand the housing laws, or if you take too long to fix a
furnace in the middle of winter.
MANAGEMENT – There is much more to it than you realized,
most of it dealing with people: tenants, repair people, accountants,
maintenance people, and lawyers to name a few. Along with collecting rent,
maintaining the property to code, and dealing with complaints and problems,
there is payroll and a pile of legal
requirements and considerations. Basically, you’re an employer with all the
accompanying headaches. And I’ll bet that’s not what you signed on for when you
invested.
TENANTS
– Finding and keeping good tenants isn’t easy. A vacancy is money slipping through your fingers. You need to create
enticing ads with good pictures to attract the kind of tenants you want. You
must respond to emails, interview people, show the unit, review applications,
pull and review credit reports, call references and past landlords, prepare a
lease negotiate the terms, get the lease signed…and this is still no guarantee
of getting a good tenant – especially if you’re not experienced with renting.
Good tenants need a quick follow-up for repair needs. Bad tenants cost you time
and money and a few rounds with the legal system to get rid of them! Until
they’re gone, one bad tenant can cost you many good tenants, and a lot of money.
The
answer to all of these problems is simple. Hire a
good residential
property management company. They will handle every management issue from
renting to maintenance…from emergencies – they
get the 2am call that a pipe has burst – to evicting the nightmare tenant. They
know the ins and outs of vetting and keeping tenants, all the legalities
involved in any situation, and have the best repair people on call. They will
lift the weight of property management from your shoulders, and let you relax
and watch your investment grow. If you haven’t before, now might be the time to
look into finding a good real estate property management company.
‘Must-Haves’ for Commercial Property Owners
‘Must-Haves’ in connection with commercial real estate owners usually refer to 3 things: attracting good business tenants, keeping those good business tenants, encouraging those good business tenants to stay for a long, long time – all the things a good commercial property management company does. What this translates into is making your investment in the commercial property pay off and in a relatively easy way. To enable this you need to put the pieces in place to find and keep good business tenants.
Amenities Employees Appreciate: Choose property close to amenities that workers value, such as an easy or convenient way to get to work. Buildings close to railway stations, bus routes, car parks are more attractive. If there are restaurants, stores, gyms or parks close by, it’s a major bonus. And don’t forget the amenities at the building itself that can drive satisfaction such as parking for cars, bicycles, and e-vehicles, as well as clean, modern bathrooms and kitchens.
A Flexible Commercial Space: You want your space to appeal to a wide range of businesses, so the more flexible it is, the more attractive it will be to more people. If you can accommodate a segmented layout, or an open plan you can appeal to a broader market of business tenants. Don’t be afraid to ‘repurpose’ your building or parts of it. As a business tenant evolves, there’s a good chance you can rework the space to enable their changes and keep them on board for the long term you desire.
The Right Attraction Factors: What type of tenants do you want? Do you have what they want? If it’s retail, your facility must be in a high traffic area with lots of street frontage and adequate parking for employees and customers. Inside should be a supportive infrastructure including phone system, high speed internet, and data lines. On top of that should be modern amenities like energy-efficient heating and air conditioning and wall-to-wall carpeting. If your target tenants are warehouse or industrial, your property needs truck access and to be close to high capacity urban roads and/or railway freight interchanges. Inside, you’ll need high ceilings, concrete platforms for heavy loads, and suitable fire systems. Both types of tenants will also need adequate power supplies and appropriate security systems.
Good Looks – Because They Do Matter: How does your facility pan out in the looks department? When a prospective tenant stands outside the front of your building what is the first impression they receive? No business owner wants to rent a place their customers don’t want to enter. There are several things that can render a building or property unattractive to potential tenants: blotchy outer paint job, broken bricks or ugly architecture, little, if any, natural light, poor street-entry, not enough lobby space, drab, worn carpet – dirty faded walls. Change the ones you can asap!
Incorporated Mobility. More business owners ‘live’ on their phones, and you need to accommodate them. One key way to do this is with a mobile optimized website and a mobile optimized team. A ‘smart’ website can include: on-line applications with ways for potential tenants to upload documents from their phones; secure online payment options that work on mobile devices; the ability to send payments to property owners electronically, and post monthly statements to a portal to be easily accessed anywhere at any time; enable online maintenance requests – which can be immediately dispatched to the appropriate personnel and tracked online. Make your team, a ‘smart’ team, with leasing, maintenance, and property management all connected via mobile phone and tablets.
The Best Real Estate Property Management Company: Let the experts handle the hard parts, the parts they’re experienced at, knowledgeable about, and effective and efficient at dealing with on a day-to-day basis. In the long run, a good commercial property management company will save you money, keep your property maintained, handle all tenant problems, and ensure your investment is paying off. You just monitor your monthly reports and bank account and enjoy your peace of mind.
Commercial properties provide a workspace rather than a living space – but this workspace involves people, who must be comfortable and productive. Whether your real estate property includes office buildings, strip malls, restaurants, warehouses or trucking companies – you must appeal to the people involved. Incorporate some or all of the ‘must-haves’ we’ve noted and you’ll go a long way toward attracting and keeping the right kind of long term business tenants you want. Thursday, March 17, 2016
CRE Outsourcing Saves Money, Increases Flexibility, and Improves Efficiency
No matter how big or how
small your corporation is, corporate real estate (CRE) outsourcing is something
you should seriously consider for several reasons, the most important being
cost savings. After paying your employees, real estate occupancy costs are your
biggest fixed expenditures. The way to reduce these costs – and increase
efficiency in the handling of your holdings - is to choose a corporate real estate property management company
experienced in your field, and aligned with your goals and values.
Things move fast in today’s
complex and increasingly specialized world markets – industries and regulations
can change or evolve in days, hours, even seconds. You need to keep a sharp and
focused eye on your core business at all times. CRE outsourcing is one way to
help you do this, while enjoying the many benefits it brings. Hand over
administrative details such as lease renewals, new lease negotiations, lease
restructuring, CAM audits, research functions, due diligence and related
financial services to knowledgeable real
estate property management professionals and confine your resources to core
needs.
COST SAVINGS - It’s both fast and easy to see savings with CRE outsourcing.
Your real estate management company is expert in its field, so it can quickly
and easily negotiate better pricing on goods and services, reduce energy use,
and locate opportunities to effectively consolidate offices when necessary.
LOWER TAXES - Outsourcing corporate real estate services allows businesses to take
advantage of lower corporate tax rates and employee-related taxes as well as a
number of other costs. Talk to your tax advisor to get the details of how your
company can benefit.
BETTER CUSTOMER SERVICE – Why waste time and money training an in-house
team when CRE professionals perform
the same services more efficiently and for less money. Your CRE management
company will know all the players as well as applicable rules and laws and will
handle issues with professional accuracy. Even if it’s only partial outsourcing
offsite by using technology, you’ll receive better results.
INCREASED FLEXIBILITY - With CRE outsourcing you’ll adapt more quickly
to increased or decreased demand for retail, office, and industrial space. Corporations
lower the risk of hiring, retaining and releasing employees with paid benefits by
outsourcing for growth or downsizing periods – let your CRE management company
handle all subleasing and assignment activities along with supporting documents
and transactions.
IMPROVED EFFICIENCY – All of your people should be focused on core
business functions. It would take months to recruit the personnel for an
in-house department to handle your real estate management, not to mention the
salaries and associated benefits for new employees, and costs for keeping them
trained and updated on the latest trends. Outsource complex and basic CRE
services to a corporate real estate management company and they’ll have
everything expertly taken care off before your team’s even up to speed.
As you’ve seen, there are
many benefits to outsourcing corporate real
estate property management, and there are more we haven’t touched on. An
expert partner in this field allows you to focus on your core business, save
money, upgrade your customer service, makes your business more flexible, and
increases efficiency. In selecting the right CRE property management partner,
on board with your goals and values, you’ve greatly increased your potential for
success!
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