As you can imagine the managing of these types of properties can become quite complex and time consuming in comparison to managing a single-family house. Many owners of apartment buildings do not have the time, expertise or the desire to manage such on their own. In these cases, it is recommended to hire a qualified property management company that specializes in apartment property management.

Responsibilities of an Apartment Property Manager

Here are just a few apartment property management responsibilities that could be required of anyone managing an apartment building:

* Rent collection
* Showing available units to prospective tenants
* Credit and background checks
* Initiating lease contracts
* Monitoring and processing lease renewals
* Enforcing the rules of a lease contract
* Dealing with violators of a lease contract
* Handling an eviction from start to finish
* Mediator when feuds between tenants occur
* Utilities
* Grounds keeping
* Security and safety of premise
* All types of maintenance issues or repairs you could think of
* Knowledge of landlord/tenant law
* Knowledge of fair housing laws

Not ready to manage your Apartment Buildings Yourself

The good news is you can enjoy all the financial benefits of owning these types of properties but not have to deal with the managerial responsibilities of managing them. Some apartment building investors though may decide to take on certain responsibilities themselves. This is a great way to educate yourself, learn from real life experience the in’s and out’s of the real estate investing business and of course save some money. That being said, we highly recommend acquiring legal advice or counsel if you are unfamiliar with landlord/tenant and fair housing laws in your state and at the federal level.

Hiring an Apartment Property Management company

There are many apartment property management companies in your area who are well-qualified, licensed, and well versed in city, state and federal laws regarding the responsibilities between landlord and tenant. If you’re ready to delegate the management of your apartment building today, we recommend interviewing several apartment property management companies. Having an apartment property manager on site at your apartment complexes is a good idea, especially when you cannot oversee the maintenance and renting business that comes with owning larger properties. Often, on-site apartment property managers that maintain apartments will be given their own apartment as part of their compensation.

Things to ask before hiring an apartment property management company

Experience – How long in business. Does the Apartment Property Management team have a proven system in place to streamline operations such as maintenance repair, timely statements, rental deposits, and communication channels? More companies are giving owners access to their property account information via a web site portal. Here you can view your statements, any repair items or rent deposits..etc.

Credentials – Does the Apartment Property Management team possess all licenses or certification required by state law? Unfortunately every state licensing requirement is different. We always recommend using a licensed Property Manager for all your rental property needs whether state required or not.

What percentage of their management portfolio are apartment complexes. If 90% of their portfolio is managing single-family homes, you may want to consider hiring one with more experience in managing larger multi-units.

Get references – Always ask for a current list of properties they manage (do some drive-by’s) and talk to other property owners who are their clients.

We suggest hiring a local real estate lawyer to review the Manager/Owner contract and the Landlord/Tenant contract. And don’t be afraid to request changes be made if necessary.

And go over all the fees involved in the management of your property. Set up fees, lease renewal fees, do they impose a mark up fee for service/repair calls etc. Find out what their cancellation policy is too. Once you think you’ve got all your questions answer, then ask this one “Are there any other fees I should know about that we have not discuss that may affect me?”

Investing in apartments for cash flow

Investing in apartment buildings is a great way to build your real estate wealth. Typically these types of properties do well for cash flow to the investor versus single-family houses where you may see appreciation in value more common. When qualifying these types of properties for your portfolio you will want to take into account the passive income that will be generated along with the expense ratio. It’s all about the numbers. A good apartment property management company should be able to help you in your decision-making.

Karen McDaniel
Principal/CEO
Property Management Profile LLC
Property Management Profile LLC is an interactive online search engine for finding all types of full service property management companies nationwide. For any property management company that is looking to gain national exposure by capturing the attention of out-of-state investors or be found by local clientele, http://www.PropertyManagementProfile.com is the place to showcase their business model and expertise to these prospective clients.
Property Management Profile offers the most up-to-date listing of full-service property management companies. We have created our site with the idea of making it simple yet detailed enough with the right information for the investors to make wise choices when looking for a property manager to manage their investment properties.
We offer an opportunity for all property management companies to list their company on our website, whether you specialize in residential, commercial, vacation or community association management. We accept small to corporate size management companies. We also offer a Free basic listing, so you have no excuse for not being listed.
Property Management Profile has become a wealth of information and resource for the first-time landlord as well as the seasoned investors. We should know what we’re talking about, as owner and creator of Property Management Profile, Karen McDaniel, has owned and managed many of her own properties. Today, all are managed by professional property management companies, so she now has more time to continue her work educating and helping others make better choices when it comes to finding a qualified property management company.

Article Source: http://EzineArticles.com/?expert=Karen_McDaniel

Commission

This is an ongoing monthly fee charged to the owner to compensate the property manager for the responsibilities of overseeing the management of their property. This fee can vary from as little as 3% to over 15% of the monthly gross rent. In place of a percentage some managers may charge a flat monthly amount which again can vary from $50 to over $200 per month. All property management companies generally charge this fee.

Lease-Up or Setup Fee

This fee is charged to the owner to compensate the property manager for their initial time invested and resources used in setting up an owners account; showing property and/or other activities resulting in tenant placement. I guess you could look at it as a “finders fee” for placing a tenant in your property. Once a tenant has been placed and first rent income comes in, the property manager will deduct this fee from the rent proceeds. Some property managers have been known to require this fee upfront prior to tenant procurement. Usually this fee is non-refundable once the property manager has started the process of tenant procurement or any legwork has been initiated with the property. This fee can vary from none to as much as the first months rent, and usually is a one-time fee per tenant.

Lease Renewal Fee

This fee is charged to the owner when a property manager renews a current tenants lease and covers the costs of initiating paperwork or communication involved in implementing the new lease document. A property manager may also justify this fee if they perform a year end inspection of property. This fee can vary from none to $200 or higher, and may be charged every time a lease renewal is implemented.

Advertising Costs

Depending upon the property management company’s contract, either they will pay the advertising costs or the owner or they could split the costs. If the manager is willing to cover this cost, most likely they will charge the lease-up or setup fee as outline above. If the management company covers this cost make sure to find out what type advertising or marketing of your property is included. If it’s placing your listing on their own web site and other free online classified sites you may not be getting your monies worth. They are many good rental or tenant resource online web sites that bring in qualified tenants for a reasonable fee and you will want to consider these. And don’t forget about print media, yard signs, listing on the MLS or even an open house. Nothing is worst than having your property vacant, bringing in no money only because you or your property manager skimped on advertising.

Maintenance Mark-up Charges

This is one of those costs you may never really of known about or had it disclosed to you. A “Mark-up” is a charge over and beyond the final bill on maintenance and/or repair work done to your property initiated by your property management company when using their vendors or in-house maintenance staff. This should be disclosed in your Manager/Owner contract which usually will state the markup as a percentage above the final invoice from vendor. For example, your manager had to call a plumber to replace the dishwasher in your rental property. Total charges for completing the job: $400. If your property manager contract states you will incur a 10% markup on all maintenance work the actual cost to you will be $440. Just one of those things to be aware of as these all eat into your profits.

Early Cancellation Fee

The dreaded “3 months and no tenant”. Your property manager insist he or she’s doing everything they can to find you a tenant. But here it is 3 months and still no tenant; what do you do. Well, look at your Manager/Owner contract and that might be your deciding factor. I am not a fan of this fee, and believe it to be an unnecessary fee and for you manager out there this could be the deal breaker. I’ll tell you why; if a property manager is doing their due diligence and keeping the owners in the loop as far as decision making, market conditions and communication lines open an owner will not be second guessing his property managers abilities. The odds of this scenario happening is unlikely but you must be prepared for it. A cancellation fee can range from none to over $500. To be fair, some managers legitimately deserve this fee especially if they have pocketed advertising costs, incurred lots of legwork and time invested in your property.

“You’ve Got To Be Kidding Me” Fees – These are ones I have personally had the pleasure of running into.

* Your property is vacant, but we still will charge our monthly commission or a small flat fee.
* “A For-Rent Yard Sign Fee”. I believe this was $25/mo.
* “Preventive Maintenance Fee”. This was to cover the “just in case” and changing out A/C filters. If “just in case” never happens they still pocket the money. I believe this was $20/mo and I still was charged for filters.

In Summary

Read your Manager/Owner contract, understand what you are signing, ask lots of questions and know what the fees will buy you in services. A good real estate lawyer can help in negotiating the terms in a contract that suit both parties. These contracts are not set in stone. If your property manager will not negotiate, there are other property management companies that are eager to earn your business.

Karen McDaniel
Principal/CEO
Property Management Profile LLC

Property Management Profile LLC is an interactive online search engine for finding all types of full service property management companies nationwide. For any property management company that is looking to gain national exposure by capturing the attention of out-of-state investors or be found by local clientele, http://www.PropertyManagementProfile.com is the place to showcase their business model and expertise to these prospective clients.

Property Management Profile offers the most up-to-date listing of full-service property management companies. We have created our site with the idea of making it simple yet detailed enough with the right information for the investors to make wise choices when looking for a property manager to manage their investment properties.

We offer an opportunity for all property management companies to list their company on our website, whether you specialize in residential, commercial, vacation or community association management. We accept small to corporate size management companies. We also offer a Free basic listing, so you have no excuse for not being listed.

Property Management Profile has become a wealth of information and resource for the first-time landlord as well as the seasoned investors. We should know what we’re talking about, as owner and creator of Property Management Profile, Karen McDaniel, has owned and managed many of her own properties. Today, all are managed by professional property management companies, so she now has more time to continue her work educating and helping others make better choices when it comes to finding a qualified property management company.

Article Source: http://EzineArticles.com/?expert=Karen_McDaniel

Phone them to ask questions then, if you are still interested; make an appointment to visit in person. Visiting in person gives you an idea of how they conduct their business and you can meet the people who will represent your interests. Here are the top five questions to ask when you interview a property manager.

1. Does the Company have a Dedicated Management Arm?

You want to know whether the property management company offers a complete service or if it is just a side line for a real estate office. Who and how will your property be managed. How many staff are in the office? Who will deal with you and your tenants if staff leave or are sick?

2. Does the Company Owner/Director get Involved in the Business?

Most property management companies are divided in two – selling real estate and managing real estate. Usually the company director is involved with the sales side as it is the high profit area of the business and a property manager takes care of leasing. If the company director is involved with the property management arm of the business, you may find they take it more seriously than others.

3. How well do they know the Rental Business?

Check with the property manager how long they have personally been dealing with property management. Just because you are talking to a well known real estate company does not mean their staff have a lot of experience. It also does not mean they provide top quality customer service.

Some property managers start out working in a real estate office as the office person and work their way up. Some move into property management and the rest into sales. Other property managers have specifically chosen property management as their career.

4. How long has the Property Manager worked for the Company?

You want a property manager that is stable in their employment, and who takes looking after your interests seriously. There is a lot of stress involved in property management, with a high turnover of staff. In six months time, you want to be talking to the same person to build a business relationship that understands your needs and the property. This is a good reason to look for a property manager dedicated to it as a career.

5. What Area does the Company Service?

You are right to consider companies that have expert local knowledge but, if you intend buying more properties in the future, how far does their expertize reach?

You do have a choice – either hire a property management company in each geographic area or find one that covers a wider area to take on all your properties.

6. How do they Conduct Property Inspections?

This is really an important one – the last thing you want is for a property manager to just hand out your keys to prospective tenants. Too much can go wrong. You want to know that the property manager will give good customer service and personally take prospective tenants to inspect your property. Or, they may hold open houses at specific times. This gives them a chance to get to know a future tenant better.

7. How many Properties does the Company Manage?

You want to know how many properties the property manager manages personally. Some may have 200 or more. If they do, I wonder how they can give you and your tenants top customer service. Others may have only up to 150 but charge more for their service. This may be a better option to get peace of mind and, ultimately, make a good return on your investment property.

8. Does the Company’s Staff Work Six Days a Week?

You want a property management company that can show your properties when it is convenient for the tenant. After all, you want tenants that can pay the rent so that means that most will be at work during normal business hours; unless it is a commercial property for rent. In the world of internet advertising, enquiries come in 24 hours a day. This comes down to their availability and ability to deal with maintenance issues as well.

9. Does the Property Manager Check New Tenant’s Credentials?

It is important to ask how the property management company checks out the credentials of short listed prospects. You need to reassure yourself they check people’s credit and rental history, and their past and present employment.

All prospective tenants must be screened carefully. Does your property manager have adequate access to information for this purpose? Do they provide you with a written report that backs up their claims when handing over short listed prospective tenants?

You now have plenty of information to help you seek out the very best property manager for your growing property portfolio. Enjoy your investment.

Property Maintenance of London offers help to landlords in the areas of end of tenancy cleaning, electrical work, garden maintenance, regular property management services, and plumbing in London.

Article Source: http://EzineArticles.com/?expert=Debbie_Roche

The Property manager has a fiduciary relationship with the management company and property owner. A fiduciary relationship is one that is based on a mutual trust and complete confidence in one another.

The Property Manager is provided an owner’s real estate portfolio to manage to its “highest and best use” in exchange for an employment contract or salary. Real estate assignments for the property manager includes apartment buildings, condominiums, hotels, storage facilities, shopping centers, office buildings, government subsidized properties, rooming houses, abandoned buildings and plots of vacant land, to name a few.

I have managed almost all of the above types of properties for over twenty years. I have managed public and private housing, for non-profit organizations, for the federal government, and for private developers and real estate investors. I also owned my own property management company for eight years. I now teach, speak, and write about property management standards and techniques. Here are some crucial skills, which I know from first hand experience, must be accepted as required attributes and learned skills in order to be a good property manager.

1. Must Know and Stay Current on Local Ordinances and State Laws

Managers are required to perform their work according to the laws of the land. The government (city, state, and federal) dictates how real estate is to be managed, from requiring a real estate license (depending on the state), to the use of the real estate (such as rent control laws). From proper trash removal to how and where we must keep security deposits, the manager has to keep abreast of the many legal requirements of managing real estate. If a mistake is made or a task is forgotten, it could cost the owner his or her property, and/or a management company’s reputation, loss of the account, or even the loss of real estate licenses.

2. Must Be Highly Ethical and Honest

Property Managers work on the Honor Code when they handle other people’s money. By collecting rent, security deposits, laundry machine money et al, the property manager holds a fiduciary relationship with the property owner and/or management company. The owner entrusts the property with thousands of dollars each month, plus the value of the real estate itself. The manager is hired to perform at his or her highest level of integrity. On a daily basis, the property manager’s good judgment and sense of what is right and wrong is called into play.

3. Must be Detail Oriented and Organized

Managers collect the rent daily, and must ensure that each rent is paid and posted to the tenants’ account as received. Financial records detailing each and every rent transaction are kept, either by rent cards, or on the computer. Lease expirations and renewals, rent increase letters, and rent invoices must be mailed on time. lines for court appearances must be kept, and clients must receive their written monthly report of operations. A skilled property manager is able to multi-task, keep site files organized, and prioritize repairs and assignments.

4. Must Have Good Communication Skills

Managers must be able to communicate with people from all walks of life, cultures, ethnicities, and personalities. Managers must be able to articulate their cases in front of judges, talk to the owner, negotiate with vendors as well as speak appropriately with tenants, who are often frustrated, upset, or angry. A good manager must be able to stay calm, and communicate in a professional manner. Familiarity speaking in other languages is always a plus.

5. Must have Good Computer Skills

Computer competency is a technical skill, like driving, typing, etc. The use of email, mail merge, and faxing through the computer is at the heart of property management today. This is especially true if the property is on one part of the city or state, and the home office is a distance away from the site. If a manager does not have a solid command of the computer and its basic programs, such as Microsoft Word and the spreadsheet Excel, you may be hard pressed to find an administrative position in this field.

6. Should Like Working with the Public

If everyone paid the rent on time by the fifth day of each month, the manager would not have rent collection work to do. If a property never had problems, such as toilet overflows, lost keys, or defective smoke detectors, a property manager would have little to do. Therefore, it is important that a manager enjoy dealing with people with problems. A manager should at least like helping tenants with dignity, and in a responsible manager. If you do not like being interrupted several times a day with a dilemma to solve, this type of job may not be for you.

7. Must Be Patient and Have a Sense of Humor

There is some pressure involved working with the public. There are days when nothing seems to go right, and if you happen to have a headache that day, it could be a long 9 to 5. A calm personality or a good sense of humor will take you a long way in property management. If you tend to be high-strung, anxious, or become angry or impatient while working with tight deadlines or with people with problems, you may want to re-consider taking on this profession.

8. Must Like to Read and Conduct Research

There are many types of leases, agreements, forms, and other legal documents that must be signed between tenants, the manager, government agencies, the site attorney, and/or the owner. Real estate and governmental regulations change; the manager must be willing to read up on them and stay current. Documentation must be read and checked before submitted to tenants, agencies, the owner, etc. If you do not like to read in order to keep up with the latest trends, legal and industry changes and terminology used, you will not be able to properly do your job.

9. Must Have a Strong Sense of Duty and Commitment

Ensuring that the tenants under your control are treated with respect, have heat and hot water, are not subjected to or committing illegal activities or disruptive behavior of their neighbors, are some of the managers’ duties. Tenants depend on the manager’s sense of obligation to the property and the families or professionals who live in it. The manager may not always have the funds to do everything all the time, but what can and should be done, such as keeping the building clean, and having a sense of urgency to get work completed in a timely manner.

10. Should be Flexible-Minded

Property Management is a fluid profession, in that it follows economic, governmental, industry, and societal changes that impacts how a property is managed. Managers who still like the “good old days” of mistreating tenants and making rental applicants jump through unnecessary hoops to get an apartment (or the opposite, by not checking anything), will find him or herself out of touch, and maybe out of a job. The ability to accept changes of law, obey fair housing laws, have a positive, or at least a neutral, attitude about people who are different, and above all, to be open-minded, is a key element of a successful manager.

11. Must Be an Excellent Follow-Up Person

A manager can never assume that a repair or rent payment plan will happen on its own. Our mantra is: “Follow Up, Follow Up, Follow Up!” This is one of the most critical skills of a good property manager. The ability to multi-task, keeping several balls in the air without dropping any of them is challenging, and difficult at times. The ability to successfully multi-task is often rewarded both financially and in promotion decisions.

Article Source: http://EzineArticles.com/?expert=Carolyn_Gibson

Perhaps the most traditional of all advertising media is signage. Just put up a sign somewhere advertising your vacant property or its opening. People who normally sees the signage are those who are determined enough to find a place that they even take the ride to find one. It’s effective but it does take a bit longer to get you tenants. Moreover, its range is also very limited. Another way is via newspaper. Before the internet dawned and started the rise of the modern age, newspaper is our very source of information and entertainment. It’s the best way to convey and advertise, as well as the best way to reach the widest base of targeted consumers. If you want people from this place to know about your place, you just have to advertise to the newspapers which dwell in that particular area.

On the modern side, there’s the internet. Everything that we know today seems to have all come from the worldwide web. It’s a source of entertainment, a mode of communication, a massive network, a powerful media, the best way to meet new people, and an effective method to reach everyone around the world. Having such capabilities, it is undoubtedly one of the most potent ways to advertise. Though it’s not as specific as newspapers, it does reach the widest demographic. In fact, websites such as Craigslist.org is also affiliated with newspapers. Last, you can tie up with tenant agencies. It’s quite a novelty idea in today’s age that has spurred out of the dramatic increase in population and rental properties. Tenant agencies introduce tenants to landlords and charge the landlord finder’s fee. This is very convenient for the landlord. Also, tenant agencies normally find landlords well-assessed and well-suited tenants for their property. Win.

As I’ve said above, none of this advertising method is generally the best. It depends on what you target, what you advertise, how you do it and how dedicated you are in finding a tenant. I suggest you focus on a media or two for you truly get the most out of its advertising potential. It would difficult to be doing all the advertising without getting the hang out of any of them. It’s better to master one or two and use the method out of its latency.

Article Source: http://EzineArticles.com/6167296

Article Source: http://EzineArticles.com/?expert=Robin_Elliott

Aside from managing properties – keeping them in good condition and running – it is also part of a real estate management company’s duty to keep the units occupied. Without tenants, the business would become a liability because of mortgage and taxes. Filling in a vacancy is a crucial and painstaking process that will require land lords good property managers and property management companies. It’s better to invest a bit higher on good ones than have it cheap and see your property go unoccupied for extended periods. You didn’t decide to do real-estate to see something like this.

On the other hand, if you’re not a landlord, what exactly can real estate business companies do for you? If you’re looking for a place, you can go directly to a property management company and ask for one. They will process all of the necessary paper on your behalf and a wide array of properties is already existent in their \ portfolio for you to choose from — whatever fits your taste and lifestyle. No need to go to anywhere else for more choices. If you decide to deal directly with owners, you will have to meet landlords one by one which takes too much time and effort.

Property management companies also give you an array of payment options to choose from, be it cash, post-dates cheques etc… You won’t have to worry about being scammed for they are guaranteed legal. Similarly, if you’re a landlord, property business companies will give you reliable property managers who will manage everything about your properties for you so cash will keep on flowing every month with very minimal effort on your side. They make sure the properties are fine round the clock, and they answer to repair concerns at ridiculous hours at night. However, concerns have to be urgent enough to be legible for a prompt response.

Regardless of whether you’re a tenant or a landlord, property business companies will come off advantageous for you. Make sure though that when you utilize the service a real estate management company, you are certain that it is legally operating with a business permit, and is anchored to the ground with an establishment. Preferably, you’ll choose the ones with a proven track record or ask your friends for recommendations.

Article Source: http://EzineArticles.com/?expert=Robin_Elliott

There are three major problems that landlords face when dealing with undesirable tenants. The first problem that nearly all landlords have faced is late payment. Although this is a very common problem, there are effective ways to solve it. With tenants who are usually prompt payers, a simple late notice will probably solve the problem. However, what about the tenants who pay late month after month? This type of tenant usually requires a little bit of a tougher approach. The best thing a landlord can do is impose late payment fees and require payment promptly. The landlord in these cases must be willing to develop clear cut standards and apply them no matter what excuse the tenant makes.

The second major problem that landlords face is tenants who refuse, or simply cannot afford, to pay the rent. Remember that no rent means no income for the landlord. Once steps are taken to collect payment, the tenant who continues to refuse to pay must be removed from the rental. The landlord must always keep clear records of tenant payments in order to be able to use the legal system to evict the tenant who won’t pay. By law, the tenant must be given a written notice of eviction. Once this is done, if the tenant still refuses to pay, it is time to submit the request for eviction.

The third problem that landlords face is tenants who do not respect their neighbors’ rights to peace and privacy. The first thing that a landlord can do when dealing with a noisy or disrespectful tenant is to call the tenant and request a change in behavior. If this does not solve the problem, the best thing a landlord can do is call the neighbor and request that they contact the police if the problem persists.

In addition to dealing with problem tenants, landlords must make sure that they do not do anything themselves that might get them in hot water. The first thing that must be avoided is intentional or unintentional discrimination. Tenants have certain rights when choosing housing and the landlord must be careful not to discriminate against these rights. However, landlords are allowed to screen their tenants, and in fact doing this will help the landlord select trustworthy tenants. Landlords must also be sure to avoid making promises that they cannot keep.

A landlord can avoid many of these problems by making sure to keep his rental properties clean and inhabitable. When problems arise, it is best for the landlord to solve the problem in a timely manner. Having clear rental contracts, not making promises that cannot be kept, and making sure to keep the rental properties in good working order will help solve most problems between tenants and landlords.

Article Source: http://EzineArticles.com/?expert=A._Kappauf

Most of the time people consider hiring a management company to help them after they acquire a property that they intend on renting. The average person fails to realize just how much time and effort goes into successfully renting out an investment property. When it comes time to show the property, screen potential tenants, collect rent, advertise the property and everything else that comes with renting, most people are quickly overwhelmed.

Do Property Management Companies Advertise

Sometimes one or two bad examples can create a negative reputation for everyone trying to do good. The same applies when it comes to choosing a company to manage your property. A trustworthy company provides its clients with advertising services to help fill the rental with tenants as soon as possible. Every once in a while you will come across a company that fails to come through on its promises but for the most part with a little bit of searching you can find a company that will provide excellent advertisement for your property.

With the help of an experienced management company you can get tenants into your rental faster and keep them there longer. Another benefit of a premier property management company is that they perform a thorough screening for every applying tenant. They check criminal background, credit history, rental history, and current employment to make sure that everything stated on the tenants application is accurate and that they will be a good fit for the rental. By taking the extra time to thoroughly screen all tenants you can help prevent problems in the future.

I Heard They Don’t Do Anything

The truth is, if you find a respectable full-service property management company the only person not doing anything will be you! These companies are designed to create a turnkey management system which allows property owners with the ability to sit back, relax, and watch their investment go to work. Property owners won’t have to worry about collect rent, handling late fee notices, or even regular inspections. All of this and a lot more will be taken care of with the services offered. No matter what myths you’ve heard about property management companies, the truth is that they can help you to take a hands-off approach to renting out your property.

Article Source: http://EzineArticles.com/?expert=Clint_Rowley

Business is a funny thing; one is never allowed to be satisfied. If you start a company, grow it, and begin to cash flow it, then that’s good, right? Isn’t that the idea? I thought it was, at least.

However, it really isn’t if you read the news, watch television, or attend any business group meetings. The things that people want to talk about are:

1. What are your growth figures in terms of revenue? Projected out to 2015?
2. Is your social media and digital strategy sound? Have you made the time and financial investments?
3. Have you thought about geographical expansion? Franchise? Office openings?

And on and on and on. There apparently isn’t any downtime allowed! If you sit pat, you’re destined to fail. You must reach for the stars of worldwide domination! The purpose of making money is to reinvest it! Get on it! Get bigger! Now!

So rapid growth is left as the only option, unless you want to be considered a “burned-out” property manager. If you choose to pursue slower, organic growth, you can be called “uninspired”, a “non-visionary”, and lazy. No one writes articles on business people who stay the course! Those stories got chopped out early in the editing room. But despite many loud naysayers to the contrary, staying the same is certainly a very viable option. It’s just the “keeping on, keeping on” strategy. Nothing is wrong with that!

But what about if you really are “uninspired” now? You are burned out! You are a property management company owner (or real estate agent) who doesn’t want to deal with the business anymore. You are looking to get out and sell out. How would you do this?

You could hire a business broker to find someone who wants to add property management to their real estate brokerage company, or just wants to own a stand-alone property management company. These instances are pretty rare and the business broker would truly be earning their money if they found someone who will buy your smaller firm (under $1M in revenues)!

What is more likely is that you would sell your management accounts to another property management firm. For example, I received a letter the other day from one of the largest property managers in town; this letter was undoubtedly sent to every property management company in the area. The letter asked to buy up the property management accounts we had.

In mergers & acquisitions speak, they were utilizing a typical roll-up strategy of buying up every smaller company in the area to accelerate their growth. They had no interest in our systems or procedures; they just wanted to throw our management clients into their management machine. This would be a fast way for them to grow rapidly. It also would be a quick way for “uninspired” property managers to get out of the business and make some quick money off of their company. A true win-win? Possibly!

To grow, stay, or go- it’s a personal decision that shouldn’t be the result of other’s expectations. There are options available no matter what you and your company’s strategy is!

Article Source: http://EzineArticles.com/?expert=Brett_D_Furniss

If you run a real estate agency and are to be moving into retail property management then you should carefully consider your staffing strategy before you get started. It is quite likely that your existing property managers will not be ideal working in or on the retail property. The skill mix is different and not commonly available in your average real estate person.

A great manager for retail property is hard to find and are a special type of person. Here is why:

1. A shopping centre is a vibrant property investment type that integrates to the community and customer. Marketing the property within that focus is an ongoing task for the centre manager. Neglect it at your peril as a property that is not aligned to the community will decline faster than you think.
2. Tenants in a shopping centre are much more focused on property usage and function than tenants in office or industrial property. The reason being that the tenancy they occupy is likely to be their business and livelihood. Communication with tenants in a shopping centre is a daily event and is a critical part of the centre manager’s job.

Both of these elements of action are very high in the activities of a manager. It is not unusual for a the person to spend the start of every day or a large part of the morning moving around the property and talking with the tenants.

Tenants have to see the retail property manager frequently and relate to them well. In only this way can the manager keep on top of lease issues and tenant volatility. In retail property these factors are higher and more volatile than in any other property category.

It is not unusual for a retail manager to have a team of people around them to support on other specialised tasks such as leasing, accounting, maintenance, tenant services, customer communication, and community contact. It is best to locate these people on site so that response and action are easily implemented. Ultimately the retail manager is responsible for all staff and the property performance overall.

It is the retail manager that will ultimately analyse and sign off on the completed:

* Building budget
* Income performance
* Expenditure activity
* Maintenance report
* Arrears recovery strategy
* Risk management
* Energy management
* Essential services function within the property
* Common area usage
* Customer visitation figures to the centre
* Turnover figures from tenants
* Capital expenditure plans and report
* Lease deals and negotiations with new tenants
* Tenant Mix strategy and implementation
* Lease renewals and changes with sitting tenants
* Renovation and refurbishment plans
* Community marketing plan
* Shopping Centre marketing plan

As you can see, a shopping centre manager is not your average property manager. They bring many more skills to the task. They are a strength to the real estate agency and a high quality service for landlords.

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