Things I Have Learned About Commercial and Retail Property Management

Commercial property management is perhaps the busiest and most intense part of the property industry. The knowledge that the property manager brings to the task is significant and special. Putting it quite simply, these people work very hard and should be carefully chosen for the buildings they manage.

Are the best managers for the role sourced elsewhere or are they allowed to rise through the ranks and other roles in the office? The answer is probably both. Importantly the person chosen for the role has to handle investment strategies for the landlord and occupancy issues for the tenants. This requires solid intelligence and analytical skills.

Retail property is even more advanced on the skill level scale. So much damage can be done to a property if the manager is underskilled or not well supported. All this requires a reasonable fee base of course. If the management fees are a recoverable item in a lease then it is a no brainer for the landlord to chose the best people to manage their property.

Low fees for property management produce poor levels of control in the property. The landlord and the tenants suffer.

It is very important that the bosses and proprietors of real estate businesses choose managers carefully. A well selected person will do the following for the real estate business:

1. Stabilise the property portfolio so cash flow is optimised


2. Attract more property tenants to the building when vacancy is pending


3. Encourage landlords to grow their property portfolio into diverse and well performing property


4. Provide a diverse commission fee base from well managed property including lease fees, rent review fees, and lease options


5. Minimise the vacancy factors for landlords in times of property growth and or pressure


6. Optimise the performance of the building outgoings in parity with the trends of the market


7. Build a better business for the real estate agent proprietor


8. Help the landlord build a better property income base


9. Provide a building business plan that matches the targets of the property investor and the investment lifecycle that they require


10. A good property management portfolio is a significant source of saleable listings in the future.

So a commercial property manager, is an essential part of the professional commercial real estate business. I would even go so far as to say that the best salespeople were grounded in the industry from a base of commercial property management.

Yes the mindset of a property manager is totally different to that of a salesperson, however the knowledge that comes from the role is high and relevant.

The management job provides real experience in legal, marketing, negotiation, lease structures, outgoings management, and property performance. Salespeople do not normally get that diversity as they move through their career.

The mindset required by a property manager is one of the diligence's to the daily management task, accuracy in financial analysis, excellent communication skills, and dedication to the landlords plans and targets. When a landlord is well served, the manager brings stability to the cash flow of real estate business. Extra commissions are possible though leasing, lease renewals, and rent review negotiations. The property manager also needs to be well versed in the negotiations and elements surrounding lease occupancy and enforcement relative to each property.

If you need to find a commercial property manager for your real estate business, select the person that brings a real future to the portfolio and can strengthen the relationships with your landlords. A commercial real estate portfolio can then grow from the skills of the property management team.

Hiring a Commercial Property Manager or Management Company

Finding and hiring dependable management to oversee routine jobs associated with residential real estate investment property requires that you as the owner make a thorough assessment of duties, responsibilities and necessary services you will need.

Management is the point of contact with the tenants that represent your revenue. As a business investor you will want to protect your investment and be represented to your tenants as a caring owner that cares about your property.

It is especially important that a competent well qualified individual or professional management company reflect your standards as the owner as well as protects your property and your reputation. You can choose to hire larger national companies that specialize in managing commercial property, or a local property manager to live on the premises.

When hiring a company make an assessment of their capacity to oversee legal obligations to confirm if the investment is in adherence to the applicable laws of the state or country in which it is located. A manager or company must act as a mediator between renters and owners to communicate and carry out complaints, repairs and maintenance.

Professional property managers should be able to take on the important responsibilities of collecting rent, security deposits and have the ability to manage income and expenditures so that your realty business remains profitable. Not keeping accurate records can result in costly evictions and damage to your property by a disgruntled tenant.

Some investors allow the current tenants to continue to occupy the property and are notified of a change in through point of contact notices to advise them of a change in management; others may purchase an empty building and hire a manager or management company to screen potential tenants.

A property evaluation will be necessary to collect information about the current or future tenants and the operational services. An evaluation will give you a complete picture of the location, the surrounding area as well the amenities that will make your property a lucrative return on your investment

A commercial property investor with many properties to manage will want to hire a manager for one property location to supervise the day to day activities. The investor with many properties, a residential property management company with experience may be a better choice.

Residential managers can perform a variety of duties in person on behalf of the owner such as maintenance and preparing empty units for occupancy. Ongoing repairs and upkeep for units, laundry facilities, trash disposal, secure access and monitoring receive an immediate response when the manager lives on the premises.

Residential property management companies do not provide all of the same services that an on-site manager may perform. Routine tasks not performed are paying property taxes, rental property insurance, property registrations with local municipalities or government entities.

Landscaping and safety issues can be addressed by either residential managers or property management companies. Contact with outside contractors for structural repairs of damages with the owner's authorization. Advertisements for the vacant units, screening of potential tenants, keying or changing the locks, carpet cleaning and painting are responsibilities you as the owner can leave up to the residential property manager can perform on your behalf.

Property managers can prepare monthly reports to their clients. These detailed statements should include paid expenses, deposited funds, and other money transaction.

Comparing Property Management Quotes

If you are searching for a property management company or an independent property manager make sure that you compare quotes. This will help you to get the best deal possible for high quality and reliable property management.

What Will a Property Management Company Do For You?

Management companies make life easier on the landlord by acting as the liaison between the tenant and the property owner. They collect rent, take care of maintenance problems, find tenants and handle evictions. In some cases they also handle property acquisitions, construction, repair and maintenance. They provide these services in exchange for a fee which is often a percentage of the monthly rent and can range anywhere from 3-10%. In addition to this standard fee some companies also charge additional fees repairs, maintenance and commissions. Comparing rates is the only way to find a company that will offer service and experience at a reasonable rate.

What Will You Still Need to Handle?

Even with a manager you will still need to handle some property issues on your own. Knowing what your responsibilities are is critical if you want to avoid legal troubles with your properties. Here are a few responsibilities that you need to make sure that you handle for each of your properties.

-Property Tax: You will still need to pay your property tax for any properties that you hold. This is typically paid yearly. Find out what your property tax obligations are and make sure that you pay them each month.

-Mortgage: If you still owe money on your property's mortgage you will still need to attend to this payment every month.

- Repairs: Many property owners delegate their repair responsibilities to their managers. This will save you time, but make sure that you still oversee the repairs. If the property manager doesn't handle repairs properly it can drive down the amount that you will be able to charge for rent. On the other hand if they make costly or unneeded repairs you might end up spending all of your profits on repair and lose money. If you do

delegate this responsibility make sure that you oversee and know the state of repair that each of your properties are in.

- Screening Tenants: If a bad tenant moves into your property it can cost a lot to get them out plus they can end up leaving your property in a state of disrepair which can cost a fortune. For this reason many property owners handle tenant screening on their own. If you do delegate this responsibility make sure that you provide your property management company with specific requirements and criteria before a tenant can move in.

- Approve Big Repairs- You will also need to authorize major and expensive repairs. If your property management company handles repairs you will still need to authorize major repairs such as a roof repair or repainting the unit.

To get a great property management quote call around and find out what several property management companies will charge for their services. Don't just ask about price, but also consider what services are included in the quoted rate. You should also pay attention to their level of experience, expertise and reputation.

7 Things to Consider When Choosing a Property Manager

Buying a property is not as difficult as taking care of it. In addition to dealing with the complicated real-estate laws, you have to efficiently sort out the problems that your tenant puts forth. At the same time, you also have to make sure that your investment is safe and secure. It is not easy to fit in all these tasks in a schedule that is already busy. Our Yokine property management business will not only help you to manage your property adeptly, but it will also ensure that you reap rich dividends year after year. Here are 7 things you should take into consideration when choosing a property manager for your investment:

1. Company experience - Property management is certainly not an easy task. It involves a lot of intricacies, hassles, complexities and challenges. To be able to handle all the problems proficiently, extensive experience in managing various kinds of properties is essential. A good property management business is one that has experience in handling old as well as new commercial, industrial and residential properties. Go through the company profile carefully; it will help you to ascertain its level of experience.


2. Employee competence - Verify whether the employees of the company are competent, hard- working and honest. Never take such claims as 'combined experience of 50 years' seriously because it is unusually difficult to ascertain whether one employee has 50 years of experience or 50 employees have 1 year of experience each. The representative of the company should be able to look after your property professionally. Apart from routine responsibilities, he should be able to handle emergencies and disasters competently. Testimonials and references are a good way to adjudge employee competency.


3. Property insurance - A wide variety of property insurance plans is available, and in such a scenario, it is often difficult to determine which one is the best. The professionals of a reputed property management business can help you to buy a superlative insurance policy. Additionally, by pooling together properties of several owners, they can facilitate lowering of insurance rates, which enables you to make a significant saving. Request the company representative to provide you with details of the most feasible property insurance plans.


4. Taxes and other financial obligations - The property management company should readily handle all the formalities related to the submission of property tax. The firm should also have a tax consultant to supervise appeals against appraisals on your property. From time to time, the company should also provide you a Profit and Loss Statement and Balance Sheet. These financial statements will help you to determine whether your property is in a profitable proposition or not.


5. Rental and lease formalities - If you're intending to rent your property, then you should ensure that the company has the expertise to handle all the lease and rental formalities. From finding a good tenant and chalking out the lease agreement to collecting rent and dealing with repairs and overall maintenance, the property management firm should be able to carry out all the tasks deftly.


6. Property development and management - A professional property management company will sincerely take charge of renovation and rehabilitation work of your estate. If you plan to develop your property, then make sure that the concerned supervisor has in-depth knowledge of the latest building techniques and construction materials.


7. Fees and charges - A first-class property management company will provide you a clear- cut fee structure based on the type of property you possess and the kind of services you wish to obtain. Before selecting the company, make sure that the taxes and labor charges are clearly defined and that the fee structure is competitive.

Choosing a real estate agent for your property sale or management is a difficult task. Holdsworth Real Estate is a professional real estate agency specializing in Yokine property management. They ensure customer the smooth selling, buying and management of your property.

Hiring a Property Manager, Is It Worth It?

I am often asked is hiring a property manager really worth the money? My answer is it depends.

The most common tasks associated with property management include collecting the rent, responding to maintenance requests and handling all of the paperwork such as the lease and disclosures. Although these duties are valuable, I don't believe they are the most valuable services a property manager has to offer. In fact, I think the 3 MOST VALUABLE services a good manager can offer are often overlooked. So what are they?

The 3 most valuable services a property manager can provide you are:

1. Act as a neutral party between owner and the tenant.
2. Save you time.
3. Protect your privacy and your property.

Why? Because when it comes down to it property management is less about managing the property and more about managing people. Sure, the property has its requirements, but the property doesn't clog the toilet or beg to have a late fee waived. PEOPLE DO. Situations involving tenant relations is where a property manager can really shine.

Reason # 1

If you decide to manage the property on your own and deal directly with the tenant they will always know you have complete control and final say over enforcement of your end of the lease. When the tenancy is peachy-keen and everyone is happy this isn't a problem, but the moment the rent comes in late is where the rubber meets the road and things can get rocky. So there you are, it's the 5th of the month and still with no rent. As part of the lease a late fee is now due and so you send a notice to notify the tenant of the late fee being assessed. Next thing you know you get a call from your tenant and they want YOU to make an exception. They tell you they've been a great tenant, they always pay the rent on time, they've been a good neighbor and that they have even done maintenance around the house. Now you have two options, make an exception which would set a new tone for the relationship and may encourage future bad behavior, or stick to your guns and turn your good relationship with your tenant sour. Remember the tenant knows you have final say and will take your decision to not be flexible personally. Suddenly you're no longer on their nice list and they won't be going the extra mile for you in the future. Either way you go, you loose. This is where having a property manager can be great. The manager can politely tell the tenant it is their job to enforce the lease and although they wish they could give the tenant a break, they have to comply with fair housing laws and treat everyone the same. The tenant may not be happy with the outcome, but it is a lot easier for someone to understand another person "just doing their job" than a landlord they perceive as being greedy and ungrateful.

Reason # 2

It may not seem like it, but managing a property can be a time intensive task. Collecting the rent requires you to keep a record and make a trip to the bank. Maintenance requires you spend time building good relationships with contractors in the area, scheduling maintenance, doing follow ups to make sure the work is complete and paying the invoices. Individually these things may not seem like much, but together they can eat away a lot of valuable time you could be spending with friends and family. Instead of handling it all yourself you could hire a property manager to take over these duties and regain the most valuable asset you have, time.

Reason # 3

In this day in age privacy is priceless. The last thing you want is a disgruntled tenant showing up at your home during dinner because they are unhappy about a fee they've been assessed. By hiring a property manager you can prevent this situation from arising. Instead of you, the manager will be in charge of collecting the rent and all related charges. By having a manager they can shield you from unpleasant experiences with your tenant and provide you with the privacy you deserve.

If you are considering renting your home please ask yourself the following?

1. Do you have good people skills and can you enforce the lease while preserving the relationship?
2. Are you ok with spending the free time you have on your property?
3. Do you value your privacy?

Depending on your answer you may want to consider hiring a property manager in your area.

If you are looking for a property management company in Portland, Oregon please visit us online and we will happily assist you.

Sleep Sound Property Management, Inc.

Secrets to the Structure of a Commercial Property Management Proposal

In commercial real estate agency, it is common to be preparing a property management proposal to submit to the property owner following a sale or a lease. This is the most opportune time to seek a new management appointment.

The structure of a commercial property management proposal will be designed for the property, the landlord, and the general precinct location. Importantly the proposal should tap into the strategies and ideas that help the property owner to achieve better property performance through sensible strategies of lease performance, income, and expenditure control.

Here are some key ideas to help structure your proposal for the management of the property. You can add your specific agency recommendations around the model.

1. An executive summary should always be placed at the front of the document. This allows the client to quickly grasp of the main strategies and outcomes that you can see as part of the management strategy.

1. Summarise the property physically together with locational elements that impact tenancy mix or occupancy. This provides clarity as to how you see the property and how it can be managed.

1. The lease and tenant mix management processes should be detailed within a section of the proposal. Care must also be taken in reviewing the tenancy schedule first to ensure that the leases are totally understood and accurately reflected in your recommendations. You should also be looking for occupancy matters that need to be immediately addressed after management handover; such as rent reviews, options, lease expiries, make good processes, and arrears.

1. The daily maintenance and function of the property will require a specific management processes. The tenants, customers, and landlord each have a different relationship to the performance of the property physically; they all have needs in the management of the property. It is wise to review the special maintenance demands of the property and to make specific recommendations regards maintenance controls, plant and machinery management, and risk management that applies to property function. As part of this it may be necessary to talk to the contractors that supply specialised maintenance services to the plant and equipment.

1. The property manager reporting processes to the landlord will be part of the property management service. Detail the relevant reporting systems that you can adopt and implement. The landlord may have other particular special reporting requirements to incorporate into the program.

1. The financial reports to be provided to the landlord can be split into examples at the back of the document; this allows the landlord to see the comprehensive nature of your reports and controls. Normally the reports will include income analysis, expenditure analysis, budget status report, arrears report, tenancy mix strategy, tenancy schedule, and lease management report.

1. The management of maintenance contractors associated with the essential services and major plant and equipment should be itemised. The major plant and equipment provides functionality to the property and tenant occupancy comfort. Any concerns that you may have here should be identified in the proposal.

1. If the subject property is complex and contains a number of tenancies, it is likely that a business plan including a tenant mix strategy should be compiled. This helps the landlord to see just how you will implement controls across the tenant mix.

1. Summarise the relevant personnel to be applied to the management of the property. In a large office or retail property the list is lengthy; it can include property manager, lease manager, engineer or maintenance manager, tenant services manager, and onsite management staff.

1. The fees to be charged to manage the property should be itemised. In some cases they will be split into base management fee, on site management office costs, and the on-site management staff.

Within each of these main categories of your proposal, you will have recommendations and ideas regard particular things that should be immediately implemented in the property.

The property management proposal is prepared on the basis of relevance to the property and the needs of the landlord; not on the relevance of your agency to manage it (you will prove that anyway if your proposal is of high quality).