Property, being a lifetime investment, offers long-term benefits. So, if managed efficiently, it can be a great source of steady income. However, if not managed the right way, the things could worsen and you might end up having annoyed customers knocking at your door or taking legal actions against you. Most of the landlords have…
Property, being a lifetime investment, offers long-term benefits. So, if managed efficiently, it can be a great source of steady income. However, if not managed the right way, the things could worsen and you might end up having annoyed customers knocking at your door or taking legal actions against you. Most of the landlords have no idea about how to manage a property efficiently and generate maximum income from it. Also, as properties are usually located quite far from where the owner lives, it becomes difficult for him to take good care of them. Such as these, there are many other issues that prevent the landlord from reaping the benefits of its property investment.
The best way to deal with these issues is enlisting the services of a reliable property management firm. These firms manage multiple properties on the behalf of landlords and aim at generating maximum revenue out of the properties. Here, it is critical to choose a company with utmost care. Doing a bit of homework, before selecting any firm, can help you save money and avoid headaches. Although every company out there claims to offer highest returns without costing a fortune, the fact of the matter is that not all are honest when it comes to fulfilling their promises. Thus, you must know how to go about choosing the right property management company.
The goodwill and reputation of a company in the marketplace can provide you with a clear picture of what all you can expect from them. Reading about their work, taking feedback from their clients and setting up an appointment with the firm's staff can be a good start to know about a property management company. In addition, visiting the local populace can also be of great help. A green signal by them about the firm means that they are popular among the local audience for their services and professionalism. Beside, when visiting the company that you intend to deal with, make sure to read their contract in detail. See to it that they are accounting for searching tenants, inspecting the properties of their clients regularly and taking the responsibility for achieving certain milestones.
Another critical consideration is what the company would charge you for their services. Usually the rates charged by different companies range from five to four percent of monthly rental fee of a property. These rates, however, can be misleading at times. Low rates do not aggravate that the property management firm is not reliable and is quoting such low rates only to attract more customers; neither do high rates show that you would get satisfactory results later on. It is there before viable not to choose a company solely on the basis of fee. In brief, if the company holds a good repute and fulfills the confidence of its clients, then the fee should not matter. With all these points in mind, choosing the right property management agency would certainly be a lot easier and quicker for you.
People that consider investing in real estate all have one common fear. The fear of having to deal with a non paying tenant. This simple fear keeps many people from exploring real estate investing, and costs them a lot of money by limiting their investment choices. When people ask me about what I do, I…
People that consider investing in real estate all have one common fear. The fear of having to deal with a non paying tenant. This simple fear keeps many people from exploring real estate investing, and costs them a lot of money by limiting their investment choices. When people ask me about what I do, I tell them I am a real estate investor, they usually respond with a horror story that they heard of or a comment about dealing with non paying tenants. I am going to help to explore and confront the situation of the non paying tenants in the hopes of extinguishing the fear.
First we need to accept and acknowledge that some people will have hardships and some will just choose to not pay the rent. We should expect it to happen from time to time. Sometimes you will get lucky and do not have the issue come up for a few years, but other times you will have multiple non paying tenants at the same time. The best thing to do is prepare for the situation and treat it the same every time.
I hear stories from other landlords telling me that they have not been paid in months or even a year by a tenant, this is usually caused by the landlord's failure to act. Sometimes people will tell me one of the tenants stories as to why they can not pay. Death in the family, job issue, or any number of other random stories. I know that if I call the bank when the mortgage is due and tell them a story, when I get off the phone the mortgage will still be due. A story never changes the amount of the rent or the time that it is due!
A landlord must take action as soon as the local law allows. In Rhode Island after rent is 15 days late you can send a 5 day demand letter to the tenant and after those 5 days if payment is not received you may file the eviction case in court. You must act as soon as possible and always prepare for an eviction. This way all tenants are treated fairly, you can not let one tenant stay without paying because they told you a sob story and then evict another tenant right away because no story was told. I urge all landlords reading this to follow my advice. Never let a story change the simple fact that the rent was not paid. I know many people avoid confrontation and stressful situations as do I. The way I handle these situations is to explain that I am running a business and to uphold fairness I must treat all ten equivalents equal, so nonpayment will be addressed as quickly as allowed by local law with no exceptions. I tell them it is not personal and that I understand they may be going through a hardship, I explain exactly what events will transpire in the future. I tell them they will receive a demand letter, and shortly after court papers will be filed. I tell them how much court fees will add to their balance and that they must be paid to bring current. So I will reiterate, you must act as soon as the law allows and prepare for an eviction as soon as rent Is not paid. Finally I will explain some steps to avoid eviction before rent is even late.
One place to explain the eviction process and provide steps to avoid it, is in the lease. I explain the entire eviction process in the lease. I spell out when they will receive a demand letter and when court papers will be filed. However I also spell out a forgiveness clause that states if the tenant can not pay the rent they may move out before the end of the 5 day demand period and all back rent and fees will be forgiven and there will be no need for court or police involvement and credit bureaus will not be informed. I have had a number of tenants move during the demand period after I explained the forgiveness clause, this benefits all parties. The landlord has possession of the unit early and may begin advertising and the tenant avoids negative credit reports and eviction judgments.
I hope you use this article to confront the fear of dealing with non paying tenants and decide to move forward with your real estate investment plans or use the tips provided to manage your property more efficiently. Thank You
In early days the purchase of land or house was for personal use. People buy or build a single big house in which the whole family lived in a joint system. Almost all men were born, brought-up, earned money, settled with family all in one place. Nowadays, one can find people relocating very often based…
In early days the purchase of land or house was for personal use. People buy or build a single big house in which the whole family lived in a joint system. Almost all men were born, brought-up, earned money, settled with family all in one place. Nowadays, one can find people relocating very often based on their studies, jobs, etc. This is one of the major reasons for the increase in the value of land and the importance of real estate market. People also started focusing on investments related to properties in all over the country. When they live in a particular place, they buy a flat or an individual house for their use. But when it becomes necessary for them to leave the place, they first look for good tenants or occupants for their house. The tiresome job of searching for such tenants will be very difficult. So they depend on certain experts in this field, who have good contacts of people.
They are the Property Management Services, where they provide excellent solutions for their clients. These people assist the customers in looking out for a good range of tenants. They will have a better knowledge about the locales, and the amount for which the house can be rented. These managers not only get tenants but also help in the maintenance of the house. There are lots of companies coming out with property management services that will take care of the maintenance of one or more flats in an effective manner and maximize rent income. These Property Management Services companies make the Apartment owners get relieved of the tension of maintaining the property and keeping informed about latest fluctuations in the market. They have good contacts of people who require flats for rent. So there will be no issue of keeping the flat vacant which diminishes rental income.
These managers maintain regular communication with the owners and keep them informed. They indulge in preventive maintenance programs to ensure that all tenants' service calls are answered. These measures retain a good tenant and increase the rental income. The service calls may be related to issues with Electricians, Plumbers, Carpenters, Interior works etc. So the Property Management Services should have good relationship with all these contractors enabling to resolve the tenant's problems at the earliest. One has to select the best managers who suit your requirement in this field to get satisfied service.
Even in this field there are lots of competitions as per the raise in demand for these services. The selection of well experienced and managers which have interlinked with all petty contractors is important. The cost for these services should be correlated to the number of advantages and quality handling of tenants. These managers should also have a deep knowledge in local law and order issues as well as the market conditions. They also take up maintenance of the surrounding environment, gardens, swimming pools, clubs etc. They involve in the safety and security of property in an effective manner.
Do you own a house, land, or commercial space and are you willing it to rent out? Then it is best to opt for rental inspection. In many countries it has evolved to help the owner as well as the tenant. This is the process of preparing a property condition report and this is important…
Do you own a house, land, or commercial space and are you willing it to rent out? Then it is best to opt for rental inspection. In many countries it has evolved to help the owner as well as the tenant. This is the process of preparing a property condition report and this is important to both Owner and the Tenant. Most of them ignore this while renting out their house, land or commercial space.
During the Rental Inspection the professionals will prepare the reports. The rental inspection is completed in the presence of both owner and tenant. There are 2 kinds of reports entry report and exit report.
The entry report is done when the owner rents the property to the tenant. This report consists of details of each object's current condition available in the property. They do a survey of all the rooms available in the property. In some cases it may require to take photographs of the existing condition of the property. For example the number of fans, bulbs and their condition (if working or not working), cracked walls broken handle of a door will all be put into the papers. The final entry report should be signed by both Owner and Tenant so that to avoid the conflicts.
The exit report is once again done when the tenant decides to vacate from the property. The same procedure is carried for this as well. By this both the owner and the tenant can find the differences or changes done in the property during the rental period.
Apart from these reports, there can be periodic inspection done for example annually, half-yearly or quarterly. The periodical rental inspection depends on the owner's interest. By doing intermediate inspection, it ensures the owner that their property is safe and clean. This kind of inspection is mainly done to make sure that they do not lose overall control on their property. In many cases the periodic examination team notifies the tenant about the date and time of review, at that time both owner and the tenant will be requested to present themselves. Another type of review is drive by inspection wherein the owner drives in to the property for inspection; this does not require any prior notification.
There are few scenarios of damage for which the tenant is not responsible such as regular wear and tear of the walls due to climatic changes or seasonal changes, the fabrics used for door or window curtains become dull. Vice versa if the tenant or the tenant's family do damages then they are subject to take the responsibility. These damages include breakage of a door or window intentionally, kids drawing on the walls, stains of the home furnishings, etc.
By now we all came to know the importance of the property inspection to either owners or the tenants. So if you are planning to rent a house, property or commercial space make sure to contact the rental inspection agencies in order to avoid future conflicts. The best thing about this inspection is proof and the documentation, which will be duly signed by both the owner and the tenant.
There are many property management companies in the marketplace today. All companies have their own charges and fees that you must incur to contract their services. The truth is that the only management companies that you should hire with are the companies that are FREE. I know everyone believes there is nothing that is “free”…
There are many property management companies in the marketplace today. All companies have their own charges and fees that you must incur to contract their services. The truth is that the only management companies that you should hire with are the companies that are FREE.
I know everyone believes there is nothing that is “free” and this is true in general but not from every perspective. When I refer to Free property management, I am talking about a company that provides added value to the properties that it handles. A value that would have been unlicensed to be reached by the owner managing the property themselves. Let's examine the value of good real estate management. Value can be expressed in many terms such as equity, lower turnover, higher rents, lower maintenance costs and most importantly, time. Time is the most important asset that exists. Simply put if you had all the money or goods in the world but you had no time to enjoy them, you do not have much.
Many property owners have full time jobs, family obligations, and little time to manage the property they own to maximum efficiency. Some of these owners work long hours in an attempt to “save” money by not hiring a property manager. After we examine this practice we will see that in most cases the property owner is actually losing money, and more importantly losing time.
The old saying “Time is money” will be a cornerstone of our analysis. Let's say the property owner in our example is an employee at XYZ Corp and is paid $ 20 an hour. A general price for property management is somewhere around 10% of collected rent. So we will prepare this owner owns a two family rental property and each unit rents for $ 700. That means the fee for professional management of this property will be in the area of $ 140 a month (10% of 700 = $ 70 per unit, times 2 = $ 140). That equals 7 hours of income for the owner. So if managing this property takes more time than 7 hours a month, or the management of the property interferees with the work of the owner than the owner would actually be better off with a professional property manager.
The time analysis shows that there is not a lot of money to be saved by managing the property yourself, especially if you could use your time towards work you are paid for. However, the time analysis does not show the complete benefits of property management. If managing property was easy and predictable there would be no property management companies. We all know that real estate repairs can pop up seemingly out of now and late tenants can turn into evictions at any time. The main cost occurs during these times, when you need to evict tenants, repair the property, advertise and attract new tenants, and lease the unit to get rental income again. These are the times when property owners with other obligations really lose time and money. You see if a property owner is unable to manage the issues efficiently and loses just one month of rental income, they would have lost enough money to pay for close to a full year of professional property management in many cases!
Good property management will allow you more time to create income or spend time with family and friends. More time is a good enough reason to hire a property manager but that is not the end of the benefits. In addition efficient management will be able to pass savings on to the owner for routine repairs and maintenance through network contractors and vendors. They will be able to make smooth transitions from vacancies to new qualified tenants and maximize Cashflow. So I will conclude by urging property owners with other obligations to strictly consider professional management, because sometimes the cost of trying to save money is just too high.
Over my real estate investing career, one thing that I have noticed is that you can make some inexpensive improvements to your rental units that can have big impacts. I have learned that you do not need granite counter tops and stainless steel appliances to increase demand for your units. You just need to think…
Over my real estate investing career, one thing that I have noticed is that you can make some inexpensive improvements to your rental units that can have big impacts. I have learned that you do not need granite counter tops and stainless steel appliances to increase demand for your units. You just need to think of being unique and providing a place to live for your tenants that they are proud to occupy. It is important to project the image of a landlord who takes the time and care to maintain and improve his / her property.
Many properties have the old flip light switches that protrude from the wall. These are old and make an apartment look dated. Many times I've seen units with painted over or even cracked or broken light switches. The low profile décor switches cost a little over $ 2 at most hardware stores. They are easy to install and provide a modern clean look. This small item has a big impact with potential tenants, it also shows an eye for details. Tenants can see if you took the time to replace the switch or if you just slapped paint on the wall and now the old switch stands out like a sore thumb.
Even worse than old light switches are painted over outlet and switch face plates. This looks terrible and shows a paint job where corners were cut. The face plates cost less than 50 cents and take seconds to replace. Do not project the image of the landlord who cuts corners, and will not invest 50 cents and some time to improve their property. I have found that if you provide a nice play to live most people will try to keep it nice, but if you project the image of a landlord who cuts costs and does not care about improving the property the tenants will react justly.
I have remote control light switches in my living room that I receive numerous complaints on. They cost $ 40, they are inexpensive but many people do not even know they exist. I will be installing these in the living rooms of my units in the future. Let my tenants get compliments and in turn take pride in where they live. Take pride in the product you provide and you will attract better customers and your profits will increase. So through your real estate investing career I would urge you to keep an eye on the details and try and look at the situation through your ten eyes.
Most of you may have heard that starting a business in partnership with friends or family members is always risky; and like this, creation of a property development syndicate with family members and friends is also risky. Some psychological studies show that some mental biases in people force them to take poor investment decisions. However,…
Most of you may have heard that starting a business in partnership with friends or family members is always risky; and like this, creation of a property development syndicate with family members and friends is also risky. Some psychological studies show that some mental biases in people force them to take poor investment decisions. However, one of the best advantages that a person can acquire when he invests with others is that it can act as a method of justifying the risk of personal prejudice that force us to take some sub-optimal investment decisions. The secret behind the success when working with others is to have a connection with someone who has complementary and different strengths of the individual looking for partnership business. Some other secrets are discussed in the content given below:
Be open and honest with the partners: For people, who wish to go for the property development syndicate, the main requirement is that they should know how to work well with others as a team. The collective focus on the people in this group should be keeping the lines of communication open and they should be in a position to effectively manage the expectations of others. Typically, miscommunication is the root cause of many relationship problems and to avoid problems in working as a syndicate an individual should possess the following skills:
1. He should try to be unpredictable and should be honest to his own words
2. Should not take things personally
3. Should be able to keep things in perspective
Research for finance strategy: The residential property development can turn out to be a successful venture only when the individual can lay attention to his financial strategy. For doing the things right from the beginning, a lot of initial planning should be done carefully. Once the structure is set up, it will be difficult to go back and start from the scratch. It is essential that the individual should spend some time researching in this area.
Having a clear exit strategy:
When a person wants to enter into residential property development business with others, he should have a clear exit strategy; This is because anything can happen in the future. If an agreed set of contingencies and a time frame that the person is willing to work is set, he will be in a position to achieve his initial objectives for sure.
There are some of the best companies offering the right kind of advice to people, who wish to enter into this business.
Hiring a professional property management firm should be among your first few considerations, while buying an investment property abroad. There are loads of reasons why it is good to avail the services of a firm that can help you manage your property. Having to manage a property, that you do not take near to, is…
Hiring a professional property management firm should be among your first few considerations, while buying an investment property abroad. There are loads of reasons why it is good to avail the services of a firm that can help you manage your property. Having to manage a property, that you do not take near to, is certainly the hardest part to deal with. What to do if there is an emergency, a theft, a leak or when some potential tenants want to check out the property? Things are definitely not very easy. This is exactly when property management firms come into the picture. The experts employed by these firms know how exactly to cope with the problems that tend to multiply, if there is no one to look after the property.
The services provided by them include the regular service, maintenance checks, advertising to find the potential tenants, dealing with all queries, arranging views and a dozen of several other tasks. Apart from location, even the time constraint can make these tasks too overwhelming for you. Especially, if you also have some other business, then hiring the services of a property management firm would be a sensible decision. Apart from saving you from the duties of handling a property, these services would also increase your overall rental income.
A reputable property manager would know exactly what the similar sized houses in the locality are actually renting for. Also, they have a good knowledge of what the prospective tenants in the area are keen to pay. This way they maximize the returns on the investment that you made and minimize the vacancies. There is another way how they save you load of money. The amount of local knowledge, which the professional property management firms can bring, is superb. They have a good number of contacts and then can get a huge discount on various services, which a regular property owner can not.
In short, you would benefit from their services, in terms of money and, as well as, time. Not to mention the peace of mind that you will enjoy after entrusting the job of handling your property in the hands of people, who are highly proficient. The services provided by these firms are intended for better management of the rental properties. The experts hired by them are highly competent, when it comes to screening the probable tenants. They make sure to fill your property with good tenants, who can pay the rent on time, act responsibly and do not harm the property in any way. What acts as a cherry on the cake is the fact that they also take necessary steps to improve the property. They work on the overall appeal of the property to raise its value. So, if you have a property abroad that you can not manage efficiently, then make the most of property management companies by availing their valuable services. By having professionals manage your property, you would certainly enjoy great results.
If you have been unlucky enough to experience the nightmare of bad managing agent for your block of flats you will probably have looked into the benefits of setting up your own RTM. Many leaseholders have had bad experiences with their managing agents and have gone down this route. The benefits are that you can…
If you have been unlucky enough to experience the nightmare of bad managing agent for your block of flats you will probably have looked into the benefits of setting up your own RTM. Many leaseholders have had bad experiences with their managing agents and have gone down this route. The benefits are that you can appoint your own agents to look after your block as well as arranging your own buildings insurance (provided the leases allows for this). There is no law that says you can not set up your own right to manage company should you wish to.
As we know some managing agents are very good and there is never any need to change them but some of them are absolutely useless and charge a fortune. By setting up your own RTM you will be able to take control of your own management. There are lots of advantages of dealing with your own management but along with your fellow lessees you will have to be sure that this is the best solution for you.
Some points worth knowing are that you will need to get 50% of the lessees to agree to the RTM. The RTM absolutely will be responsible for the upkeep of the building and must ensure that the terms of the lease are complied with in regards to external repairs and decorations. It is also worth noting that the freeholder can issue proceedings against the RTM if they feel that the maintenance is not being carried out. You do not have to prove that your block has been poorly managed to set up an RTM. You can in fact just go ahead if you feel it is in the interest of the tenants.
Some of the downsides are that you may fall out with your neighbors if you are having to chase them for arrears of service charges or breaks of the lease and you will have to set some time to deal with other aspects of the management. Many leaseholders set up the RTM so that they can have some control over who is dealing with the management. You do not actually have to do the management yourself as this can be time consuming and in some instances requires a little expertise. However if you decide to do the management yourself you can charge fees. You will be required to have a AGM and prepare accounts so that everyone can see the block is being managed properly.
If you think estate planning is only for old people, then you must be mistaken. Planning the smooth distribution of your assets saves your beneficies from a lot of trouble, anxiety and unnecessary fees. Death is inevitable yet is something that people rarely talk about. Making sure that your assets go to the right people…
If you think estate planning is only for old people, then you must be mistaken. Planning the smooth distribution of your assets saves your beneficies from a lot of trouble, anxiety and unnecessary fees. Death is inevitable yet is something that people rarely talk about. Making sure that your assets go to the right people when you're no longer around is very important if you want your family's future secure.
Estate planning is basically assigning your assets to the people whom you want to get your properties in the event of your death. Writing your last will and testament is very important for the smooth transition of your properties to your loved ones. A special power of attorney is necessary and an accountant to compute your assets. These people are very knowledgeable about financial management, trust and estate.
There are many benefits if you plan your assets while you still can. Your loved ones will not go through the trouble of attending court words that entail costly attorney's fees. The taxes are also less when you're properties have already been assigned. Family disputes arising from your passing are also reduced when you've handled estate planning ahead of time.
If you have children, designing a guardian is an essential part of estate planning. This ensures that the right people will be taking care of them if something happens to you. A death of a parent is already stressful on its own. Children with no guardians need to go through court proceedings that will subject them under a tremendous amount of stress. Planning your will in advance protects your kids and gives them a sense of security once you're gone.
It may not be easy to deal with the fact that you need to plan your will and design beneficaries for all your assets. However doing it gives a lot of benefits even to you. People who suddenly became disabled and mentally impaired can be well taken care of with estate planning. A sudden death also does not become a real burden to a person's dependents and family members.
People have the notification that only the wealthy need to plan and settle their affairs. While this may be true one way or another, even the less moneyed can pass on something to his / her spouse or child. A bank account under your name for example can go to your child. Even a special item that you have, like your favorite stove for instance, can be passed on to a dear friend. People will cherish you more with simple things that mean a great deal.
With the help of an attorney, planning the distribution of one's assets is fairly quick and easy in exchange for lifelong benefits that you can give to the people you care about. It takes very little time compared to a lifetime of security for your loved ones. People work hard for money and many other material things, but these can not be bought to the afterlife. Making sure that your treasured possessions go to the right people can be done with careful and timely estate planning.
When you manage a commercial or retail property, it is essential that the landlord be kept fully informed on all property activity and the associated financial performance from the tenants and the leases. This is where the end of month report is really important as a regular recording process and property strategy tool. Over time…
When you manage a commercial or retail property, it is essential that the landlord be kept fully informed on all property activity and the associated financial performance from the tenants and the leases. This is where the end of month report is really important as a regular recording process and property strategy tool.
Over time the monthly report is of high value to landlords with their property investment and the property managers providing the service to them. It allows all parties to understand current issues and record any changes or upgrades. Every monthly report should be considered as a critical document of activity and property performance. The larger the property, the more important this issue is to all parties.
Here are some factors to comment on in your regular monthly report to the landlords that you serve:
- Income charged and received will always be high on the agenda each month. Charges raised to all tenants should be in keeping with the provisions of the relative leases and terms of occupancy.
- Arrears will occur throughout the management year and for a variety of reasons. Sometimes they are a product of tenant default, while at other times they can occur due to a discrepancy between the parties to the lease. Stay on top of the arrears and any decisions related to recovery of rent. Document the status of all issues as a matter of record.
- Expenditure will require careful management. In larger properties the expenditure will be tied to a budget for the landlord to monitor. Make sure that all expenditure paid is in keeping with the approvals of the landlord.
- Maintenance and repairs will occur in a property due to the wear and tear factor, plus the age of the property. It is important that the property is safe and compliant to all building codes that allow and contribute towards the occupancy of tenants.
- Lease management is a process of staying on top of all leases and lease events. Rent reviews, options, lease expiries, make good provisions, and tenant refurbishments are all important factors to administrator. The monthly management report should reflect the current status of all issues.
- Risk management and property compliance can to a degree be linked when it comes to property operations and performance. Every property should be safe for tenants to occupy, customers to use, and compliance to the required safety and building codes. The best place to record the updates for all things in these categories is in the monthly report.
Use your end of month report as a professional property management tool that tracks the current issues in the commercial or retail property. In this way you will have a solid system of record to fall back on in the future when problems or misunderstandings develop with the tenants, landlord, or customers (and expect that they will).
When you manage an older commercial or retail property there are some serious issues to monitor closely. They have different challenges when it comes to property performance and those challenges should be balanced as best possible given the prevailing market conditions. Failure to do so will hasten the redundancy factor and escalate vacancies when the…
When you manage an older commercial or retail property there are some serious issues to monitor closely. They have different challenges when it comes to property performance and those challenges should be balanced as best possible given the prevailing market conditions. Failure to do so will hasten the redundancy factor and escalate vacancies when the asset can least afford to be exposed to such pressure.
When a new property development comes into the market it will threaten the financial performance and the tenancy mix of the older assets locally. For this reason an experienced property manager is required.
Many tenants will seek the best value and the most modern awards that they can afford when it comes to leasing and occupancy. Many new assets and buildings will have lease incentives to draw tenants in from the surrounding business community.
All of these raises problems and challenges for the owners of older assets. This is where the property manager requires special skills and focus to maintain the older property and keep it competitive from an investment and leasing point of view.
Here are some key points of focus that can be applied in leasing and managing an older commercial or retail asset.
- Lease expiration dates should be watched closely. The existing tenants in the property are of high value to the landlord. Moving concessions to another property will always be an inconvenience to those tenants from a business point of view. That being said, they will still want a competitive lease package to remain in occupancy beyond their current lease expiration.
- Outgoings recovery will be a real issue in older properties. The age of the property is likely to put pressure on repairs and maintenance and that will feed through to the income raised. Care should be exercised with net and gross rents to ensure that the landlord gets a reasonable recovery of outgoings.
- Capital expenditure will rise with the age of the asset. The capital expenditure spent in the property will be a cost to the property owner. It is wise to establish a budget to keep capital expenditure under some control as the property ages.
- Tenant mix and the tenant mix strategy can be of real importance to a retail property. It is large the reason people will visit the building. Choose the right tenants that suit the customers and the adjacentants.
- Services and amenities should be maintained for the tenants and visitors to the property. If this fails to occur, it is likely to drive people from the property. Therefore lifting the vacancy factor and lowering the income for the landlord.
- Maintenance in older properties should be kept up to scratch for the tenants and suitable for safe and compliant property performance.
If you manage an older property, develop the right systems to keep income up and the tenants in occupancy. Plan your property management systems with the landlord.
In commercial and retail property management, you will come across some landlords that are quite difficult to work with. Over time the relationship between the property manager and the landlord can become quite stressful (even toxic) and affect the processes on the property. Occasionally the landlord will become disgruntled and unsatisfied. In such case, they…
In commercial and retail property management, you will come across some landlords that are quite difficult to work with. Over time the relationship between the property manager and the landlord can become quite stressful (even toxic) and affect the processes on the property.
Occasionally the landlord will become disgruntled and unsatisfied. In such case, they will soon move their portfolio to another real estate management agency. They could even repeat the process again a few times!
From the very start of a property management appointment it is essential that the relationship between the manager and the landlord be nurtured and encouraged. Essentially the manager has to understand the needs of the landlord, and provide the necessary solutions in a timely way. That being said, it is very hard for a landlord to respect a property manager that is lacking the skills or the knowledge required to do the task successfully.
Make no mistake, the skills and the knowledge required here is specialized, and only the best property managers should be employed for the task. On average, the saloons of commercial and retail managers are more significant than residential managers. That is a reflection on the required knowledge, expertise, and work input required.
At the top of the scale, shopping center managers and the most highly paid in the industry; however they work really hard for it. Managing, marketing, and leasing a shopping center are not easy processes.
If a new or junior property manager is employed in your agency, it is essential that they are given the support of an experienced and talented senior property manager for quite some time.
There are many things for the new junior manager to learn including but not limited to the following:
- Lease administration and lease implementation – The interpretation of the lease document can be quite challenging task and requires reasonable intelligence on the part of the property manager when it comes to understanding legal documentation and property management situations. Lease administration also requires special skills when it comes to tenant mix management, tenant analysis, and vacancy management. The income for each property under management should be optimized for the plans of the landlord and the prevailing market conditions.
- Tenant management systems and processes will need to be implemented. Some penalties can be extremely challenging and require a lot of ongoing daily management. This is very common when it comes to the management of retail property. If you have a shopping center with many tenants, the tenant management requirements will be very high. Tenant management processes should incorporate good business procedure and attention to detail. Many disagrees can occur as part of the day to day property management activity in any investment property .. The notes of tenant discussions and conversations that you have on a daily basis will always be critical to future evidence requirements. Protect yourself and your conversations through the maintenance of good records. Take plenty of notes. The organized in your business processes.
- The reporting and control requirements for each and every landlord will differ. This means that the property manager will need to understand what each landlord expects when it comes to income, expenditure, maintenance, reports, tenant mix, and vacancy management. Some of these factors will have limitations and approval requirements to be referred to the landlord.
- Financial activities within the property will vary significantly across the categories of income and expenditure. Optimizing income and managing expenditure is all part of the daily process when it comes to property performance and property optimization. Financial management is reasonably straightforward when it comes to a single tenant in a single property. Providing you understand the terms of the lease, the income and expenditure budgeting process can easily undertaken for your client as the landlord. It is where you work on complex properties with multiple occupants that the issue becomes far more challenging. In such case, you need to look at the variances of income and expenditure over the entire year, including all the tenancies, and the complex property usage. Attention to detail is required.
Taking all of these things into account, they are the three basic categories of control when it comes to commercial and retail property management.
When all of these activities are properly implemented and controlled, the respect of the landlord is easy to achieve and maintain. Most landlords just want to know that their portfolio and property are properly managed within their expectations and investment plan. That is why they call it an agency service.
One important aspect of the tenancy management is the tenancy check-out process. Landlords want to recover the property in the same condition as they let it in the first place so they can re-let it straight away. Tenants, on the other hand, are most likely moving to a new house and trying to juggle the…
One important aspect of the tenancy management is the tenancy check-out process.
Landlords want to recover the property in the same condition as they let it in the first place so they can re-let it straight away. Tenants, on the other hand, are most likely moving to a new house and trying to juggle the many things involved with moving home which makes it particularly that they forget to properly check that everything is done to the required standard.
Unfortunately, these results in bitter disputes between landlords and tenants and it creates problems that could easily avoid if everyone knew what it is expected of them from the start.
For landlords it means rectifying problems, such as cleaning and repairs, and most importantly potentially leasing rental income during the time the property is getting ready for the new tenants to move in or even for the property to be ready to be advertised and viewed by potential tenants.
For tenants it results in claims against their deposit which sometimes comes as a shock as the cost of hiring professionals to carry out a job is usually higher than what they expect.
We find that following these 3 simple steps can avoid most of these problems:
- Step 1 – Property Inventory – A detailed, independent property inventory at the beginning of the tenancy is essential to establish what the condition of the property was to begin with and to serve as a reference of what is expected at check out time.
- Step 2 – Pre Check Out Letter and Checklist – 2 weeks before the check out send your tenants a letter containing a checklist so they know what it is expected of them. Make it clear that a professional, independent check out report will be compiled when they vacate the property and that failure to return the property as expected may result in a claim against their deposit.
- Step 3 – Conduct a check out inspection – Make sure you get an independent check out inspection and report compiled. Any issues highlighted by this will bear much more weight in front of an adjudicator if they are properly documented by an independent party.
In most cases this type of process ensures that the property is handed over without problems so allowing for landlords and tenants to focus on the most important things rather than entering into length disputes that do not benefit any party.
Have you ever thought of managing your properties for the secure future of your family? If you have, then estate planning is definitely what you need to do to make sure that everything goes according to your will. Many people forego this thought for lots of reasons. Some do not like to think of death…
Have you ever thought of managing your properties for the secure future of your family? If you have, then estate planning is definitely what you need to do to make sure that everything goes according to your will. Many people forego this thought for lots of reasons. Some do not like to think of death while others just do not think it's an absolute necessity. Nonetheless, it is important to set things straight mostpecially if you have plenty of assets and properties under your name.
Estate planning makes sure that your assets go smoothly to the appropriate people. Yes it's exactly planning your property in the event of your death, as it brings so much ease and convenience to your loved ones. Fights and misunderstandings are lessened with proper planning of one's properties. Everything goes according to plan to which your loved ones will definitely benefit from.
The first thing that must be done with estate planning is to find a good and trusted attorney and an accountant. These estate planners specialize in trust and estate and financial planning. They know exactly what to do and should give you the right advice on how to proceed. Most people choose an attorney who has been a friend for years or a lawyer that they extremely trust.
Writing your last will and testament is a must in ensuring that your assets will be transferred to the right people. With the help of an attorney, you should craft a will that names your beneficies and trustees. You should also name the attorney who will take charge of the will and inform your beneficies about it in the event of your death.
The last will and testament basically contains who gets what in the time of your passing. In the will, you will design the person who will get your house, car, stocks and many other assets. The will ensures the smooth distribution and transition of your assets even if you are no longer around to see it through. Writing your will and planning your estate carefully saves your loved ones from going through court hearings that may be costly.
Apart from choosing the beneficies of your assets, you can also schedule the guardsians of your children if any. A death of one parent can be extremely difficult for a child most especially if the other parent is also absent. With proper planning, you will prevent your kids from going through courts and being handled by social service. Choose a close relative or your children's godparents as their temporary guardians. Let these people know that you've designated them as the guardsians of your children in the event of your passing.
Death is a subject that many people do not like to talk about. However, planning the distribution of your assets and the care of your kids are very important in making sure that your family is well taken care of. Even if you do not have plenty of assets, estate planning is still advantageous in ensuring that your loved ones get at least something of value from you. A car or your favorite book can mean a lot to a person and make you well-remembered in their lives.