Consider expanding your service offerings to include mortgage services.  Mortgage services are extremely profitable.  Many states only require one or two courses to get licensed, and you may be able to use the loan officer course to get MCE credit for your real estate license.

You probably have a large pool of prospective investors with adjustable rate mortgages who need to refinance their mortgage. Why refer this business, when you can easily provide this service. You already have an established relationship with each owner.  If you own your office, you may even consider subleasing space and partner with a mortgage broker. Our in house mortgage broker pays us rent and refers real estate and property management business to us. This drastically lowers the overhead cost for both companies.

In my last article, I discussed how 2008 will be a great opportunity to purchase rental property from motivated landlords with negative cash flow properties.  As property managers, we can easily achieve instant equity by purchasing property below market and earning a commission at closing. We can increase our return on investment with monthly cash flow, appreciation, principle reduction, and tax savings by depreciating rental property. However, only licensed real estate professionals can use rental property to generate business income.

No other investment can potentially offer a greater return for a property manager than investing in rental property.  Our company provides maintenance, sales, leasing, property management, and mortgage services. We leverage all of our services to generate as much revenue per client as possible.  We offer a one stop shop for all our customers. 

As a licensed real estate broker and loan officer, we generate thousands of dollars each year by assisting tenants living in rental properties I own to purchase homes. We assist tenants in repairing their credit, obtaining a mortgage, representing them as a buyer’s agent, and utilizing our in house maintenance company to help them fix up the property or make any necessary repairs. Not only are tenants happy to utilize our services, but they refer business to us as well.

In our market, there is a huge demand for home buyers who just sold their home and need a place to park while they build a new home. Yet few property managers offer lease terms less than six month, because short term leases are not profitable for the owner. I fill this market demand with properties I personally own and network with Realtors and builders and offer short term leases for their clients and customers. In return, I ask them to refer my company future property management business. We will refer the owner back to the Realtor if they decide to sell the property in the future. This makes the sales transaction go very smoothly, and Realtors are thankful for us providing this service. We have obtained many property management referrals because of this service offering. Even the short term tenants have referred property management business to us.

The more properties you purchase, the more you can leverage your company’s services to generate business income. You will save thousands of dollars in income taxes each year by depreciating each rental property.  Owning rental property can lower your income tax liability to low single digit percentages. Some landlords with a large rental property portfolio pay no income taxes, because their depreciation expense exceeds their taxable income.

I encourage property managers to take advantage of near record low interest rates and purchase as many rental properties as possible. Leverage your rental properties to generate incremental business income.  

In my next article, I will discuss how licensed real estate agents can leverage rental property to generate additional business and tax savings.

Video related to property management

cmrpropertymanagement.com – Your property doesn't sell? Do you own real estate that doesn't make you money? Stop bleeding and let us help you! • Can't sell your property? Rent it! • Don't want to wait until the market improves to sell your home? Lease it with Option to Purchase! • Can't find tenants for your rental? Let us do the marketing for you! • Don't have time to manage your real estate investment? Let our professional property managers do it for you! • Can't deal with problem tenants? We'll do it for you! Carolinas Metro Realty helping property owners to manage their investments in Charlotte (North Carolina) and surrounding areas, whether it is residential or commercial property, single family home, condominium (condo), duplex, triplex, apartment complex, home for rent, lease or lease with option to purchase. We specialize in managing residential rental properties – homes, condominiums (condos), townhomes (townhouses), apartments, duplexes, triplexes and commercial properties – in the Charlotte region including Lake Wylie, Lake Norman and towns of Mint Hill, Fort Mill, Rock Hill, Tega Cay, Gastonia, Indian Trail, Harrisburg, Mathews, Mooresville, Waxhaw, Weddington, Uptown Charlotte, Huntersville, Pineville, Huntersville, Cornelius, Davidson, Denver, Mooresville, Troutman, Sherrills Ford, Catawba for individual owners, investors and corporations. We serve North Carolina, South Carolina, Mecklenburg, Iredell, Lancaster, Union, Gaston and Catawba counties.

Frequently question about property management

Thanks in advance!

About Author

Kris Colquette

Kris Colquette’s real estate website kcaustin.com is a fantastic resource for Austin Condos & Austin Foreclosures.  There is also a fantastic Flat Fee MLS Listing service available there! Enjoy the abundant Austin home information available and please don’t hesitate to contact me with Austin real estate questions.

When you are in a place where you have rental properties to look after, you may be a little overwhelmed at the idea of doing it all by yourself. The truth is that there are lots of property owners who hire property management companies to look after their concerns for them. Take some time to really consider what a property manager could do for you, and then make sure that you look for one that really suits your needs.

/>1.Experience
How long have they been in business and to what extent have they managed properties like yours before? It is one thing to manage a few single family homes, and quite a different one to manage an apartment building that holds more than thirty units.

2.Demeanor
Are you comfortable having them be the “face” of your rental property? Chances are good that they’ll see more of your clients than you do, so will they get along with your clients and treat them with respect?

3.Organization
When you visit their offices, are things neatly filed away and close to hand, or does it look like an explosion of paper work? If the work space isn’t tidy, you may be in a place where important paperwork gets lost or misfiled.

4.References
Who else lets this company manage their properties? If you know anyone else who rents properties but doesn’t oversee them themselves, consult with them to see what property managing companies are good and which ones to avoid.

5.Promptness
No matter how you contact them, they should give you a response in a reasonable fashion. If they don’t get back to you in a reasonable amount of time, you cannot expect them to get back to your tenants in a reasonable amount of time either!

6.Cultural sensitivity
When you are looking for a management company, be aware that they are going to deal with any one who might care to rent from, regardless of their race, sex or sexual orientation. Unless they can be civil, you do not want them working for you.

7.Checklists
Can they show you right away what they are willing to do for you and what kind of duties that you are going to be taking part in? This is an important way to figure out what is actually going to be done for you and so that you will be on the same page.

8.Other properties
Take a look at the other properties that they manage. Are they well maintained and does it look like the people who live there are happy with it? Take a moment to stop some tenants and see how they feel about the company that runs their property.

9.Money matters
Do they handle money, and how do they prefer to do it? Make sure that you are on the same page with your company when it comes to things like rent collection and other payments.

10.Better Business Bureau ranking
How do they rate on the Better Business Bureau? This can be an important step for you to take when it comes to finding a company that really suits you.

Video related to property management

This is a demonstration of the ease and power of Rentec Direct Property Management Software. For landlords and property managers who feel this software would be useful for them, Rentec Direct is offering it free. Visit www.rentecdirect.com to signup for free today.

Frequently question about property management

About Author

William Douglas

William Douglas Management has been providing quality association management services to North Carolina and South Carolina since 1980 focusing on Homeowner and Condominium Owner Association Management .

Savills’ November index of commercial development activity shows 13th monthly fall in a row

The UK commercial property sector continued to deteriorate at an increasingly rapid rate last month, new research by Savills has shown.

Its Total Commercial Development Activity Index fell in November for the 13th month in a row, with the rate of decline slightly steeper than in October.

As the credit crunch began to bite, weakening occupier demand led to a new series-record decline in development activity.

Almost 58% of respondents to Savills commercial property survey reported a drop in activity, compared with just 7% signalling a rise.

The index showed a resulting net balance of -50.3% in November, down from -49.7% in October.

The fastest reduction of activity was in private new build. Office development was particularly hard hit. For the fifth time in 2008, however, the least marked fall in activity was shown by refurbishment.

November’s survey also found widespread pessimism about the three-month outlook for activity, with the degree of negative sentiment the lowest since the survey began in March 2003.

Commercial developers said they remained concerned over the extent to which lower central bank rates can alleviate the downturn in the sector over the near term as a result of continued lack of credit availability, and a reluctance of clients to commit to new projects.

Commenting on the November survey, Mat Oakley, head of Savills’ commercial research department, said the negative outlook was surprising: “This month’s survey was surprising in the fact that developers’ expectations for the future continued to slide.

“While the lack of debt available is clearly a dragging factor on the market, we expected that November’s 150bp cut in the base rate might give developers some confidence that the downturn in occupier demand would be shorter and less deep than it could have been,” he added.

About UK Business Property

Whilst there are more than 20 portals covering residential property in the UK the commercial property market remains relatively unserved, with no site having a majority share of the total available commercial property listed. The internet has taken a significantly greater share of all advertising spend each year as it continues to prove that it is the most effective medium for advertisers to reach their audience.

Traditional estate agency methods remain quite successful in reaching the local market around a property, but do not capture leads from the national and international markets at all well. With increasing mobility of populations and business in the global village, it makes sense to expose commercial properties as efficiently as possible to the whole market. In 2006 there were 6 million searches (based on figures from Yahoo Search) made on the internet in the UK for commercial property of all types. Many of these searches will be fruitless as major search engines do not expose many of the available properties at present.

UK Business Property aims to change this by offering commercial agents important incentives to bring all their properties to the whole market. By linking to UKBP agents will bring more traffic to their websites. For agents who do not yet have a fully featured search on their website UKBP offers it’s advanced search functions free of charge, in an easy to implement solution. The advantage is that you keep your visitors on your site and build your brand in your local market, while receiving leads from a national and international audience.

UKBP is committed to supporting agents, with advantageous Agency Terms and a profitable opening offer to it’s Founder Members, who Register and upload their properties before 28th February 2007.

Video related to commercial property

How is your town doing? Is there tons of empty commercial real estate? Is this the end of the urban sprawl? Many are losing millions from lost rentals. If the large corporations are having a hard time staying in business how is the little guy going to make it? If debt is money and there is no credit, there is no money! Please add a video of your town of commercial or residential. You pray & the churches prey! March 13, 2009

Frequently question about commercial property

About Author

Ukbiz

More Commercial Property News & Resources

Are you a property investor who is planning on renting the property out? If the answer to this question is yes then you will be one of the many people who are in need of a property manager.

When it comes to handling and managing all of the aspects that are involved in the rental business it can often become overwhelming. Many people who buy property with the intention of renting it out lack the necessary skills to do this successfully. By gaining the help of a property manager however you shift the responsibility of doing this onto someone who is trained and experienced in all aspects of property management. Property management is a great resource that leaves you free to get on with other aspects of business and your life while you have peace of mind that your property and/or rental business is in safe hands.

A property manager will be just what you need to help you get your head around the rental and property market. You will be able to learn how to handle marketing, leasing, billing and rent collections as well as repair and maintenance work. More importantly however, property management will be able to inform you of where you stand with the law and what rights you have when it comes to tenants and the structure of the building.

By using the help from property management you are gaining a valuable resource. The skill set of a property management team is ongoing; as well as the above a property management team can also produce financial reports and security deposit escrows. A property management team will be able to provide you with detailed income and expenses reports as well as cash statements every month, which saves you the headache of bookkeeping. Property management also involves providing you with end of year tax reports for the use of your accountant or financial advisor. A property management team really can help you with every aspect of your property and/or rental business.

The concept of property management is a people business. This is because every time you enter into a new lease you are starting a new relationship with a tenant and within this relationship you will have to play many roles such as landlord, friend and foe to name merely just a few. Your property management team will play all of these roles for your tenants and are trained to do exactly this.

With a property management team you will be gaining years of marketing expertise, which means a property management team will be your best source of knowledge when it comes to marketing your property so that it will be rented in the quickest time possible. Your property management team will also have local knowledge of the rental rates so they will be able to determine the highest rental rate that is possible for your property.

Property management can do so much for you when it comes to property investment. They will be your biggest resource when it comes to gaining and keeping tenants so my advice to you is to get on board with a property management team today.

Video related to property management

For more information, visit www.davidtilney.com

Frequently question about property management

About Author

MARK Z.

If you are looking for a solid Michigan Property Management Company you can count on The MARK Z Real Estate Team. Search West Bloomfield MI Real Estate a Michigan Real Estate Blog.

How to Determine the Value of Commercial Property

Investing in commercial real estate is quite lucrative if you are an intelligent investor, who has a property purchase plan from the beginning. Before you ever make a move to begin the purchase process, it is wise to take a look at the property to project the potential value of your investment.

Not all valuation methods are created equal

Before discussing the actual valuation of commercial property, it is prudent to know the different methods of real estate valuation. The first is the market valuation, or sales comparison method. Residential homes are usually valued using the sales comparison method since the value of a home is directly related to the price a buyer is willing to pay compared to the sales price of similar homes.

Another method is the Cost Valuation Method, which is simply land value plus an estimate of what a building or other improvements would cost to reproduce in today’s dollars.

And the last method, which is used most widely in commercial and investment real estate valuation, is the income capitalization method, or cap rate method. Using this method, commercial property is valued by determining the rate of return on an investment, or capitalization rate, divided by the average net operating income (NOI) for the property. NOI is the gross income for the property less expenses, but not including debt service or mortgage payments.

For instance, you as an investor find a nice retail strip center for sale. The current owner provides details of the previous 12 months net operating income, and you find that the average yearly NOI is $75,000. The capitalization rate for the area you are looking is about 10%. Therefore, by dividing $75,000 by 10%, you can figure that $750,000 is a good estimation of the value of the property.

Enlisting professional sidekicks for your commercial portfolio

Remember that this type of quick estimate is a ball park figure only. A true and accurate valuation can be performed by a licensed commercial real estate appraiser. Also, if you use a commercial mortgage broker to help finance an investment, the broker can provide a clearer estimated cap rate valuation because he has access to databases that provide critical information, such as accurate cap rates in the area of your potential investment, typical vacancy rates, and average rent per square foot for an area.

Keep in mind that the seller may provide financial statements and data that are overstated or exaggerated. For instance, he may indicate no vacancy contingency in his expenses. Or gross rents may be higher than the average for the area. It is wise to carefully analyze the income statement and use the experience and knowledge of a broker or appraiser to figure accurate numbers when calculating the potential NOI for a property.
Befriending the PPU for valuation

Another type of commercial real estate valuation is the price per unit or PPU. The PPU may be used on commercial property, such as apartment buildings, where excessive vacancies may skew the financial data and the final NOI cap rate. By using the sales comparable method mentioned above, a commercial real estate appraiser can more accurately determine the value of an apartment building by comparing the recent sales of similar apartments, and determining an average price per unit. Simply multiplying the PPU by the number of units in a potential investment can provide an accurate valuation.

It is helpful for an investor of commercial real estate to know the methods of valuation for a property. By knowing the methods and working with a team of experts, an investor can intelligently determine whether a commercial property will be a profitable investment.

Video related to commercial property

May 10, 2009 – recorded 17:30 GMT I seem to be under 'attack' from some rather ardent trolls…please be kind and click 'View all XXX comments', and thumb up the comments please- and remember to 'show' the 'spam' comments too – there's a ton of good comments there. YT has been notified Remember to check out my blog: feveriam.blogspot.com Bank of England braced for third wave of financial crisis www.guardian.co.uk FDIC to Open a Temporary East Coast Satellite Office: www.fdic.gov The connection between Unemployment and Commercial Real Estate explained… Commercial real estate fears for regionals: www.ft.com Next shoe to drop? The other real estate market: business.theglobeandmail.com Real Estate Index Rises Along With Delinquencies: www.nasdaq.com Manhattan Calling: www.nytimes.com REITS On A Run: www.cnbc.com US Treasury must protect apartment renters-Senator: www.reuters.com Statewide Organization Launches Foreclosure Hotline–for Tenants: www.tenantstogether.org Peace

Frequently question about commercial property

About Author

Brice Sheppard

Brice Sheppard is an author, teacher, investor and owner of a leading mortgage/real estate brokerage specializing in investment real estate. Brice and his team helps investors make informed decisons when buying, refinancing, or selling their investment property. He can be reached at brice@sheppardfinancial.com or visit www.SheppardGroupLLC.com for tons of FREE articles, tips and investment tools.

Finding a good property manager is like any other vendor search – it’s worth your time up front to make the best possible choice. That’s because a bad manager can cost you a lot of money, up to the entire value of your rental property investment. Consider:

• Your property manager will be receiving rent and fees on your behalf. A crooked manager could steal you blind.

• Your manager will be in charge of finding new tenants. A naïve or slipshod manager could bring in bad tenants who trash your building.

• Your manager will handle maintenance. A greedy manager could charge a fortune for simple repair jobs.

Here’s a thirty-question checklist for interviewing prospective property managers. The answers you get will provide a very solid understanding of each manager’s qualifications. You can also get an impression of a prospective manager from other cues – I’ll explain those at the end.

Finally, remember that you have to compare managers to others within an area. It’s possible that none of the prospective managers in one city will match the high standard of your terrific manager in another. On the other hand, if you can’t find a good manager in a city where you plan to invest in real estate, maybe you shouldn’t invest there.

The first questions have to do with finding good tenants, which I think is the key to a happy building. A building with good tenants tends to have fewer maintenance and other issues.

• How many vacancies do you have right now? Out of how many total units that you manage?

• What is the average length of time it takes to fill a vacancy?

• Is that average time getting longer or shorter?

• How do you market your rental units?

• Do you require an exclusive arrangement for marketing to new tenants?

• How does your web site look?

• What factors would make you reject a prospect?

• Would you accept a tenant who met your qualifications in some areas, but not others? Which qualifications are most important to you?

• What screening methods do you use?

You want a manager who finds good tenants reasonably quickly. He should use a variety of methods to find prospective tenants, such as a web site, Craigslist postings, newspaper ads, signs, flyers and more. Your manager should follow an extensive screening process, but be willing to accept a “maybe” tenant if the situation is right. You want a look at the web site to make sure that is inviting to prospective tenants, and constantly updated.

As for the exclusive arrangement, property managers never mind when you or somebody else finds prospects for them. However, in almost all cases, they will still want a rental fee for moving the prospect into your rental unit. Make sure you have a clause that if the unit hasn’t been rented for some time, and you or someone else you find brings in a new tenant, the rental fee is cut in half. You don’t want it cut to $0 because the manager will still have to screen prospects.

The next questions relate to tenant management. It’s just as important to keep good tenants as it is to find them.

• What does your lease look like?

• What is your late rent policy?

• What other rules do you set for tenants?

• What percentage of tenants do you have to evict?

• How does the eviction process work here?

• How do your tenants contact you?

I recommend sticking with the manager’s preferred lease, late rent policy, and rules unless you have a really major objection. If the manager is really experienced, chances are they’ve developed smart rules and policies over time. Tenants should be able to contact the manager through a variety of ways during the day, and have an emergency number for off hours. If the manager is always evicting tenants, he’s bringing in bad tenants.

The next questions relate to maintenance.

• Which kinds of maintenance jobs are handled in-house?

• Which ones do you use an outside handyman for?

• Which ones do you use professional contractors for?

• How many quotes do you get for jobs?

• How expensive does a job have to be for you to contact me before doing it?

• What are your rules for contractors being inside occupied rental units?

• Who are your preferred contractors?

Managers should have a well-thought-out system for assigning jobs to different parties – in-house employees, handyman and professional contractors. Almost any plumbing, heating, or electrical job should be handled by a professional. Other jobs, such as paving a parking lot, require special equipment that usually only professionals have. But most small jobs can be done by handymen who will cost you less.

You want multiple quotes for major jobs – say, anything over $500. You should also have a rule that contractors can never enter an occupied unit –even if the tenant is not home at the time – without a manager’s representative being there. Finally, you want the names of preferred contractors so you can run a quick check on them.

The last group of questions relates to experience. You want managers to know the local real estate world inside and out.

• How long have you been a property manager?

• How long have you been a manager in this area?

• Can I see some of the other properties you manage?

• Do you personally invest in real estate in this area?

Finally, you need to understand your arrangement with the property manager.

• What is your fee structure?

• How will I get reports?

• Do you require an exclusive arrangement to broker the property?

• How much notice will you give before terminating a contract?

The manager’s fees aren’t really important unless they are much higher than everybody else’s, or are so high that you really can’t afford them. Reports are very important because they are your only window into how your investments are performing. The best way is to get them on your own computer, on your time – as may be the case if they use on-line property management software.

You should not accept any exclusive arrangement to broker properties unless they have a limited term. In other words, if the properties don’t sell after a certain time, you can re-list with a different broker for no penalty.

Also, you should require good notice for the contract to be terminated – at least 30 days. That gives you time to find another manager.

Here are some other things to watch out for:

• A manager with a messy office or personal appearance. Chances are he doesn’t much care about the condition of the properties either.

• A manager you have a hard time reaching by phone or email. If he won’t return your messages now when he’s trying to get your business, what are the chances that he’ll do better later?

• A manager whom you sense is trying to intimidate you with knowledge. The “don’t ask stupid questions, I know all about this” approach is often a cover for not really knowing much at all.

Video related to property management

Atuke Newell of AUS Properties provides five insightful tips for property management and ensuring your investment is profitable.

Frequently question about property management

About Author

Brendan O’Brien

Brendan O’Brien is the developer of Property Master rental property management software. Our landlord software runs on any Web-connected computer with full accounting, alerts, nearly 50 reports, and many other great features. Check out our e-book for more great tips at pcpropertymaster.com.

While many property managers still use Excel spreadsheets or a pencil and paper to manage their investments, there are much better tools available. The property management software you choose should be flexible, inexpensive and easy to use.

You need a really flexible rental property program because, as a property manager, you never know what tomorrow may bring. You might need to get details about a property or tenant at home, in the office or even out at a property. You might need to have other members of your company get records themselves, from their own computers. Your business might double, and you don’t want a tool that won’t server your needs any more.

The most flexible property management programs are those running over the Internet. Because the records are kept on a Web server, you – or anyone else you authorize – can get to them from any Internet-connected computer. And unlike Windows property management programs, on-line property management software doesn’t limit the number of units (doors) you can manage.

Surprisingly, you don’t give up any security features when using the right on-line property management software. True, the records aren’t on your computer. Instead, they’re maintained on a computer that typically has much better protection than your own. It’ll be kept in a locked room, fire-safe room, with daily backups and multiple storage devices. The best on-line rental property programs also use SSL security so that all of your work is encrypted – and therefore completely off-limits to hackers.

All on-line rental property programs are sold by subscription. Look for one that doesn’t require a long-term commitment or a single annual payment. You want to be able to cancel without any penalties.

Because property management programs can be complex, look for one where support and training are included in the subscription fee. You want a company that looks to maintain a healthy long-term relationship with its customers. This is actually another advantage of on-line tools; they have to keep you satisfied for a long time, not just for the first 30 or 60 days.

Support and training should be offered on your schedule. Make sure your software vendor has extended support hours, especially if your office is on one coast and theirs is on another.

It goes without saying that the best property management software is developed by actual property managers. However, some developers rely on their own very limited experience. For example, they may know all about single-family houses, but have no clue about the special needs of commercial property investing or multifamily units. Make sure the company you choose relies on a wide variety of property managers, landlords and other experts to get product design tips.

In addition, you want your property management software to be responsive to your specific needs. Companies making Windows property management software can never be that responsive to customers, because upgrading the software is such a hassle. Such companies often only release upgrades every year or two, and when they do, their customers have to go through what may be a very messy upgrade process. On the other hand, on-line property management software can be upgraded whenever the company has a new feature that has been fully tested. The next time customers log in, the new features are ready for them to use.

Here are some of the features that you will absolutely want in your property management program.

• A full accounting package. Your program should support whichever accounting method you prefer, cash (simpler) or accrual (more detailed and preferred by most property managers). It should include a number of accounting reports that you can run at any time and for any period. You should be able to calculate late fees and discounts automatically

• Check writing. When you have to write a lot of checks for your business, it’s great to be able to just print them off on your computer. Your software vendor will put you in touch with at least one company that makes the kind of check forms you will need.

One word of caution: to print checks with blank check stock, you will need a laser printer and a special magnetic ink cartridge. The laser printer probably won’t be an issue, but the magnetic ink cartridge may be. A simpler solution is just to order preprinted check forms. These forms will have the basic information such as MICR numbers (the numbers at the bottom of the check, which are always printed in magnetic ink). You’ll still print checks, but just the amount, payee, date and other fields that don’t have to be in magnetic ink.

• Reminders. You should be able to set up reminders for appointments, projects, and other tasks. You should also get automatic reminders for the two things every property manager wants to be aware of: late rent payments and expiring leases.

• Many different data fields to let you store all the information you want, but not that many mandatory data fields. You should be able to use your software for as little or as much work as you like.

• Fast and easy data management. You’ll spend a lot of time entering records and finding what you need in your property management software. You don’t want something that will make it complicated and difficult to handle these tasks. Look for wizards and maybe even a “Quick Start” feature to make loading fast, and fast searching and sorting to let you very easily find what you need.

What if you find a property management program that is great, but not perfect? Many property managers will quit using a program because it doesn’t have the one specific report or calculation they really like. They then have a choice; they can keep on going with Excel or written ledgers, or they can continue on an endless search for the perfect program that simply doesn’t exist.

Instead, why not contact the company you are interested in and see if they can add the feature you want? You might learn that they’re already working on it. If not, they may be happy to add it to keep you satisfied.

Video related to property management

Christopher Galler, Chief Operating Officer, discusses rental properties and property management.

Frequently question about property management

About Author

Brendan O’Brien

Brendan O’Brien is the developer of Property Master rental property management software. Our landlord software runs on any Web-connected computer with full accounting, alerts, nearly 50 reports, and many other great features. Check out our e-book for more great tips at pcpropertymaster.com.

Five Considerations of Hiring Property Managers

1. Management Fee
The property owner needs to understand the purpose of the management fee (typically 10%). The percentage management fee pays for the property manager’s time. The 10% allows someone else to help shoulder the burden of owning the property. The owner is paying for someone else to field 2:00 am calls. It is important to remember that the property manager cannot take all of the responsibility and burden off the owner. In the end, it is the owner’s property and the owner’s responsibility.

2. Interview
When hiring any professional, an interview will be conducted to hire the correct candidate and then the professional is left to alone to do their job. Working with a property manager is no different. During the interview process ask good questions; require forthright answers, hire the right candidate, and then get out of their way. If an owner is a high micromanager then they should hire a certain type property manager (see Property Manager categories below).

3. Personality fit
The owner’s personality has to fit the property manager’s systems and procedures. Sometimes owners will have difficulty with a property managers systems and procedures. If a property management company sets office hours between 9-5 Monday through Friday and owner wants an update on their property @ 6:00pm on a Friday evening they will have to wait until 9:00 am Monday. This may drive some owners crazy who want to be very involved in the day-to-day management. If this is the case they probably should hire a manager who will be more responsive to the owner’s needs.

4. Communication
Communication is a two-way street. It is not only the property manager’s responsibility to communicate effectively. Owners should understand they have to lead the property manager in how they expect the manager to manage the property.

Here’s an example: My wife is a director of marketing for a company. She has to be the leader in guiding and directing the advertising agency as to what she wants for the project. She cannot expect the advertising agency to try to guess what she wants in the project.

If your property manager is slow in returning your phone calls explain to them the level of communication you expect. In return, ask them how much communication they expect from you.

Many property managers would rather only communicate with you on as needed basis. Much more than this level of communication from the owner is overkill.

5. Property Manager Categories
While Property managers fall into three categories, the size of the property management company is neither better nor worse than the others. Choosing the size of property manager has more to do with the level of owner pampering and paperwork provided rather than a property manager being good or bad.

Small 1-50 units
Property managers in the small category are usually unlicensed with no training in property management. These managers will have more time for the property owner. This type of property manager is usually not much more than a handyman who will show and rent apartments. If a property owner wants to be hands on and needs to be updated on every specific action of the property this is the manager they should hire.

Pros:
These property managers have the time to cuddle and coddle the owner. They will provide the owner with receipts for repairs and nothing else in documentation.

Cons:
These managers will have no systems in place to and will not be able to negotiate vendor discounts. No 1099s and no accounting documents prepared for your accountant.

Medium 50-150 units

Pros:
These managers have more of a professional approach with the use of some systems. They have the purchase power to negotiate some vendor discounts.

Cons:
The paperwork may be enough for the owner to understand the numbers, but may not be enough information to submit to an accountant or to the IRS.

Large 150+

Pros:
Large companies have invested a lot of money in their systems procedures. They will have an in-house maintenance staff. Their accounting reports can be submitted to an accountant or the IRS.

Cons:
No time with the owner. Communication is very professional, but impersonal, done mostly through email and voicemail. Large management companies offer very little owner pampering and handholding. The downside: even owners who have been in real estate for many years still need some positive reinforcement once in a while.

Ryan Windley coauthored The Property Management Start-Up Guide – How to Start a Property Management Business and Still Keep Your Life in order to introduce entrepreneurs to property management as a viable business.

If you would like to know more about starting your own property management company you can purchase the book @ http://www.propertyprof.info

Video related to property management

Property Management Incorporated. A property management franchise opportunity.

Frequently question about property management

About Author

Ryan Windley

Ryan Windley coauthored The Property Management Start-Up Guide – How to Start a Property Management Business and Still Keep Your Life in order to introduce entrepreneurs to property management as a viable business.

If you would like to know more about starting your own property management company you can purchase the book @ http://www.propertyprof.info

Commercial property can provide stable, assured and measured growth as part of a balanced portfolio. Unlike residential property, the dividends from commercial property would be usually quite high, as it is meant for commercial purpose. There are a lot of benefits in investing in commercial property.

The benefits of a commercial property:

A Significant Asset Class.
The commercial property market is worth over £450 billion in the UK alone and i am sure you can imagine what it is like in other developed and much bigger countries.

Portfolio Diversification.
Investing in commercial property represents a major diversification for your portfolio. Its volatility is very low in comparison to stock market investments and there is no correlation between the performance of commercial property and the stock market.

Predictable Returns.
Because of its low volatility, the returns from commercial property funds are more predictable and stable.

Record Of Healthy Growth.
Over the short, medium and long term, commercial property has outperformed the stock and bond market.

However, before investing in commercial property, you must also be aware of the risk factors also. Just like any other investment, commercial property has got its risks, but with a little bit of careful thought and planning, you can simply overtake those risk factors.

There is less volatility in commercial property market, so the returns are sure, but there is also less liquidity in market demand. Once you have a good tenant, they’re usually there for a reasonable duration, but the problem is that for a range of commercial property; up to medium sized premises, the selection is wide and varied with new developments springing up monthly. But there is no need to panic, as the effects of these risk factors are considerably low.

If you are a big investor looking for huge returns, the best of both worlds can be obtained by investing in large government or commercial institutional properties that hold leases for 15 years or more. Here you have the combination of assured tenancy, stable yield growth and high occupancy. This in turn maintains the capital value of the property itself. If you’re convinced, then now would be the time to get that cheque book out and invest your $50 million or $100 million. If, like most private investors, that’s a little beyond your current scope, then the optimum approach is to consider investing into a commercial property fund.

Video related to commercial property

Watch My LIVE Broadcasts (On-Demand): www.livestream.com Add me as a friend on Facebook! www.facebook.com Get DAILY growby10 Updates on Twitter! twitter.com Aug. 10 (Bloomberg) — The collapse in commercial real estate is preventing Federal Reserve Chairman Ben S. Bernanke from declaring the economy and financial markets are healed. Property values have fallen 35 percent since October 2007, according to Moodys Investors Service. Thats making it tough for owners to refinance almost $165 billion of mortgages for skyscrapers, shopping malls and hotels this year, pressuring companies such as Maguire Properties Inc., the largest office landlord in downtown Los Angeles, to put buildings up for sale. Negative Fundamental Demand for commercial space comes from employment and the income generated by that employment, said University of Pennsylvania Professor Joseph Gyourko, director of the Wharton Schools Samuel Zell and Robert Lurie Real Estate Center in Philadelphia. Mounting job losses are a really significant negative fundamental, signaling that conditions are going to be tough for the industry for a while, he said. That may spill over into mounting losses at some banks. Forty-seven percent of loans at the 7000-plus smaller US lenders are in commercial real estate, compared with 17 percent for the biggest banks, according to New York-based Goldman Sachs Group Inc.

Frequently question about commercial property

About Author

Robert Goldsmith

Robert is a Freelance Writer For WhyPropertyInvest.com. They Specialize In Information About Property Investment. No Matter What Kind Of Property You Are Looking For Whether It Be A Residential, Or A Commercial Property You Can Find More Information Here.

In the eBook The Property Management Start-Up Guide How to Start a Property Management Business and Still Keep Your Life we have identified several systems that once implemented, will drastically reduce the time and headaches of property management.   Here are a couple systems that will help you keep your life while owning a property management company.

Rental Unit Key Managementstrong>