December 25, 2010
Kevin Kiene asked:
What do property management companies do, anyway? What don’t they do? How much do they charge? Are they worth it?
Whoa there, tiger. We’ll answer your questions about property management, and succinctly, at that.
Landlords and rental building owners hire property management companies to assume all of the headaches involved with managing properties and tenants, allowing the landlord to spend their time in other ways. Typical responsibilities of a property management company include screening tenants, fielding phone calls from them, taking care of all repairs and maintenance, complying with rental laws (such as lead paint tests and disclosures), signing rental agreements and rental disclosures, etc. As an added bonus, they keep track of all the money that’s spent on each property, making your accounting a LOT easier. In a word, they do the everyday management.
What they usually DON’T do is pay your bills, such as your mortgage payment or property taxes (word to the wise: have your mortgage lender escrow for property taxes & insurance, ground rents, and any other recurring bills to save time). Property management firms typically don’t register your rental properties with local municipalities, either.
What do they charge? Property management companies generally charge in the 7-10% range, as a commission of all rental income collected (e.g. if the rent is $1,000, the management fee may be $70-100). This is no small fee every month, and constitutes a major disadvantage to using a management firm, especially when so many landlords only break even or have a small cash flow from their rental properties.
So now the hard part: are property management companies worth the expense?
The answer, of course, is that it depends. You may not be able to afford to pay a management company, if your rental only breaks even each month. But there is something to be said for being able to sleep at night without being woken up by obnoxious tenants calling to complain that the smoke detector needs a new battery, or having to spend your lunch break running out to show a rental property. The fact is that most landlords can handle the management of a few rental properties, but there is a critical mass at which point it no longer becomes feasible to perform property management duties for your rental properties AND do all of your other business tasks.
So my recommendation is to handle management yourself for your first few rental units, and get a crash course on managing rental properties. But when you can’t take it anymore, it’s time to pass the buck along to someone else, and get back to your primary business: making money.
What do property management companies do, anyway? What don’t they do? How much do they charge? Are they worth it?
Whoa there, tiger. We’ll answer your questions about property management, and succinctly, at that.
Landlords and rental building owners hire property management companies to assume all of the headaches involved with managing properties and tenants, allowing the landlord to spend their time in other ways. Typical responsibilities of a property management company include screening tenants, fielding phone calls from them, taking care of all repairs and maintenance, complying with rental laws (such as lead paint tests and disclosures), signing rental agreements and rental disclosures, etc. As an added bonus, they keep track of all the money that’s spent on each property, making your accounting a LOT easier. In a word, they do the everyday management.
What they usually DON’T do is pay your bills, such as your mortgage payment or property taxes (word to the wise: have your mortgage lender escrow for property taxes & insurance, ground rents, and any other recurring bills to save time). Property management firms typically don’t register your rental properties with local municipalities, either.
What do they charge? Property management companies generally charge in the 7-10% range, as a commission of all rental income collected (e.g. if the rent is $1,000, the management fee may be $70-100). This is no small fee every month, and constitutes a major disadvantage to using a management firm, especially when so many landlords only break even or have a small cash flow from their rental properties.
So now the hard part: are property management companies worth the expense?
The answer, of course, is that it depends. You may not be able to afford to pay a management company, if your rental only breaks even each month. But there is something to be said for being able to sleep at night without being woken up by obnoxious tenants calling to complain that the smoke detector needs a new battery, or having to spend your lunch break running out to show a rental property. The fact is that most landlords can handle the management of a few rental properties, but there is a critical mass at which point it no longer becomes feasible to perform property management duties for your rental properties AND do all of your other business tasks.
So my recommendation is to handle management yourself for your first few rental units, and get a crash course on managing rental properties. But when you can’t take it anymore, it’s time to pass the buck along to someone else, and get back to your primary business: making money.
Filed under Real Estate by on Dec 25th, 2010. Comment. 
December 23, 2010
Karen McDaniel asked:
Apartment property management is considered the managing of a multi-unit rental property and the residents or tenants that occupy it. These properties can range from small multi-unit buildings to very large complexes housing hundred of residents. Residential property management is a more industry used term and could include the managing of single-family homes as well as apartment complexes.
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.
Apartment property management is considered the managing of a multi-unit rental property and the residents or tenants that occupy it. These properties can range from small multi-unit buildings to very large complexes housing hundred of residents. Residential property management is a more industry used term and could include the managing of single-family homes as well as apartment complexes.
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.
Filed under Real Estate by on Dec 23rd, 2010. Comment.
December 20, 2010
Chris Jenkinson asked:
Minimise your property management to-do list with the right letting property software. Instead of charting lease renewals, rent dues and maintenance tasks by hand, allow the software to do it for you. With the right tool, you can reduce errors while maximizing your time for the more important duties of your job.
Key Features to Look for
Rent payments are likely to differ from tenant to tenant, depending on the number of rooms they pay for, the location of the property, inclusion of utilities and a host of other items. The task of keeping up with the rent for all of your tenants, in light of these differences, can be quite cumbersome. With the right letting property software, you can streamline this process. Rent can be calculated for each tenant based on their particular lease requirements. Reports can be generated to show you those people in arrears. The software should also be able to produce letters to the tenants as well.
If you own a variety of different property types, the right software tools should allow you to incorporate them all. Commercial, industrial, residential and even agricultural properties can be integrated within one system, regardless of whether the rental or lease agreements are long-term or short-term. This means, your accounting and other recordkeeping becomes much simpler and you can even streamline your banking needs as well, even if you handle multiple bank accounts.
The software you choose for your property management needs should also allow for regular updates so you can always keep current with the latest accounting regulations and governmental policies regarding tenants and landlords. If you are the owner of the properties and employ several property managers, choose the software that allows for multiple logins. Each manager could freely enter the data pertaining to their properties while you can easily oversee and check up on their work and productivity.
Implementing a software package into your current business operations can take some time and money initially. However, view it as an investment because you can expect big dividends in the end. These dividends include a reduction in paperwork, greater organization in record-keeping, more time for client relations and marketing and a streamlined process which reduces duplicative efforts and other time hogs.
Choose a software option that can handle your current portfolio but will also grow with you should you want to expand your locations as well as the type of properties. Think of letting property software as the primary building block you need to provide a solid foundation for operations and management of your property portfolio.
Minimise your property management to-do list with the right letting property software. Instead of charting lease renewals, rent dues and maintenance tasks by hand, allow the software to do it for you. With the right tool, you can reduce errors while maximizing your time for the more important duties of your job.
Key Features to Look for
Rent payments are likely to differ from tenant to tenant, depending on the number of rooms they pay for, the location of the property, inclusion of utilities and a host of other items. The task of keeping up with the rent for all of your tenants, in light of these differences, can be quite cumbersome. With the right letting property software, you can streamline this process. Rent can be calculated for each tenant based on their particular lease requirements. Reports can be generated to show you those people in arrears. The software should also be able to produce letters to the tenants as well.
If you own a variety of different property types, the right software tools should allow you to incorporate them all. Commercial, industrial, residential and even agricultural properties can be integrated within one system, regardless of whether the rental or lease agreements are long-term or short-term. This means, your accounting and other recordkeeping becomes much simpler and you can even streamline your banking needs as well, even if you handle multiple bank accounts.
The software you choose for your property management needs should also allow for regular updates so you can always keep current with the latest accounting regulations and governmental policies regarding tenants and landlords. If you are the owner of the properties and employ several property managers, choose the software that allows for multiple logins. Each manager could freely enter the data pertaining to their properties while you can easily oversee and check up on their work and productivity.
Implementing a software package into your current business operations can take some time and money initially. However, view it as an investment because you can expect big dividends in the end. These dividends include a reduction in paperwork, greater organization in record-keeping, more time for client relations and marketing and a streamlined process which reduces duplicative efforts and other time hogs.
Choose a software option that can handle your current portfolio but will also grow with you should you want to expand your locations as well as the type of properties. Think of letting property software as the primary building block you need to provide a solid foundation for operations and management of your property portfolio.
Filed under Real Estate by on Dec 20th, 2010. Comment.
December 16, 2010
Joe Hicks asked:
Renting a property is not just a sign and pay deal. Before the property can be rented, it is the right of the landlord or the hired property manager to check the tenants and their credentials. They are, after all, the ones who will occupy the property for a long period of time.
Checking on tenants credentials is necessary. The property management company is normally in charge of doing this. It is one of their responsibilities. It is also the right of the owner to do so. It is a way of assuring that the rental home will not only be paid for regularly but also to know if the property will be taken care of property.
So if you are one of those wanting to rent a property, expects these credentials to be checked before you will be given the go-ahead signal.
Income And Earnings.
Two of the headaches in property rentals are unpaid rent and late payments. These are what the landlords are dreading the most.
To make sure that these things will not happen, the tenants’ income is checked first and foremost. In the application, the income should be stated. The property manager then contacts the employer to verify if the information supplied is correct. There are cases where documents are even required to confirm the income status.
Credit Standing.
A tenant with good credit standing is what landlords sought for. This basically means that the person pays bills on time and probably is good with managing his or her finances. On the other hand, a tenant with bad credit standing is the opposite of the above.
From the credit score alone, the landlord will know if the tenant is reliable or not. Just like the income, credit score can be checked once all the details are given. A simple assessment is all it takes if the application will be approved or not.
Former Ownership or Rental.
The income or credit standing of a person is not enough for tenants to be approved or not. There is also the issue of past rent and ownership. Landlords prefer tenants with past rental history so they can check them out for feedback.
The landlord not only looks for a good report and referral, he or she also checks if the tenant actually rented the property in the past and is not merely using the info for rent approval. From past referrals, the owner will confirm if you will be a good tenant or not. The better the testimonial, the more chances it is for tenants’ application to quickly be approved.
Ratio in Terms of Debt.
Some of the more successful property owners assess the debt ratio of the tenant during the application. This is done by looking over the total debt amount in correlation with the amount the tenant is making.
This is how the company is assured that the tenant is not going overboard with his or her finances and to make sure that payments will definitely be made.
Verification and more verification. These are the steps that landlord or property managers take before a tenant is approved to rent a property.
Renting a property is not just a sign and pay deal. Before the property can be rented, it is the right of the landlord or the hired property manager to check the tenants and their credentials. They are, after all, the ones who will occupy the property for a long period of time.
Checking on tenants credentials is necessary. The property management company is normally in charge of doing this. It is one of their responsibilities. It is also the right of the owner to do so. It is a way of assuring that the rental home will not only be paid for regularly but also to know if the property will be taken care of property.
So if you are one of those wanting to rent a property, expects these credentials to be checked before you will be given the go-ahead signal.
Income And Earnings.
Two of the headaches in property rentals are unpaid rent and late payments. These are what the landlords are dreading the most.
To make sure that these things will not happen, the tenants’ income is checked first and foremost. In the application, the income should be stated. The property manager then contacts the employer to verify if the information supplied is correct. There are cases where documents are even required to confirm the income status.
Credit Standing.
A tenant with good credit standing is what landlords sought for. This basically means that the person pays bills on time and probably is good with managing his or her finances. On the other hand, a tenant with bad credit standing is the opposite of the above.
From the credit score alone, the landlord will know if the tenant is reliable or not. Just like the income, credit score can be checked once all the details are given. A simple assessment is all it takes if the application will be approved or not.
Former Ownership or Rental.
The income or credit standing of a person is not enough for tenants to be approved or not. There is also the issue of past rent and ownership. Landlords prefer tenants with past rental history so they can check them out for feedback.
The landlord not only looks for a good report and referral, he or she also checks if the tenant actually rented the property in the past and is not merely using the info for rent approval. From past referrals, the owner will confirm if you will be a good tenant or not. The better the testimonial, the more chances it is for tenants’ application to quickly be approved.
Ratio in Terms of Debt.
Some of the more successful property owners assess the debt ratio of the tenant during the application. This is done by looking over the total debt amount in correlation with the amount the tenant is making.
This is how the company is assured that the tenant is not going overboard with his or her finances and to make sure that payments will definitely be made.
Verification and more verification. These are the steps that landlord or property managers take before a tenant is approved to rent a property.
Filed under Real Estate by on Dec 16th, 2010. Comment.
December 15, 2010
Livia Belmonte asked:
Property management is the concern of many of us, taking into account the fact that our society is in continuous movement and change. Property management information is available not only in specialized magazines and research papers, but also online, on websites that have as their major concern study, market research, covering issues regarding marketing and leasing, land use and development, maintenance and other important subjects. There are also property management companies that offer their consultancy and assistance during an investment and management period.
The advantage of reading property management magazines is that they present both the academic and professional point of view. Besides, some of them are available online, too. Another advantage of property management magazines is that some of them are focused either on the national or international perspective regarding important issues. Property management magazines are a valuable resource for people who want to be informed about changes of this domain.
There are various online resource centers offering news and information about property management. You can find there information about property and real estate, tax deductions for landlords, frequently asked tenants concerning the legal or practical issues of tenants and landlords. Property management resource centers also offer useful tips for landlords and valuable details about usual issues. Tenant injuries is a subject discussed by online property management resource centers, pointing out insurance facts and landlord liability. There are also legal updates to previous information offered on the website so that the landlords would be well informed about recent changes.
Landlords may be amazed by the fact that there is property management software available. This property management software is of great help for landlords with a few rental units and for management of big properties. In this way, you can have your rental properties organized, benefiting from the smart Windows based software. This popular property management software reminds you of expiring leases, late rent, providing extensive reports in various categories. Property management is made easier and more accessible with simple software that provides necessary and valuable information in due time.
There are also National Property Management Associations focused on personal property and fixed-asset professionals. These associations can offer training, educational opportunities as well as certification programs, all of them concerning the subject property management.
You can find information and assistance concerning agriculture, industry property management. There are property management divisions concerned with some particular branches: real property, personal property and physical property. Property management can become easier with support, implementation and monitoring of procedures, regulations and policies for the management of real and personal property.
Property management companies have to deal with multiple responsibilities and aspects of management of ownership of real estate. These companies offer to negotiate and stabilize the relationships between landlord and tenant. They also manage income and activities involving expenses, repair, maintenance and other aspects of the construction and development.
Property management is much more than a matter of responsibility, awareness and information. It requires time, intelligence and witness, great attention to details, but also management qualifications.
Property management is the concern of many of us, taking into account the fact that our society is in continuous movement and change. Property management information is available not only in specialized magazines and research papers, but also online, on websites that have as their major concern study, market research, covering issues regarding marketing and leasing, land use and development, maintenance and other important subjects. There are also property management companies that offer their consultancy and assistance during an investment and management period.
The advantage of reading property management magazines is that they present both the academic and professional point of view. Besides, some of them are available online, too. Another advantage of property management magazines is that some of them are focused either on the national or international perspective regarding important issues. Property management magazines are a valuable resource for people who want to be informed about changes of this domain.
There are various online resource centers offering news and information about property management. You can find there information about property and real estate, tax deductions for landlords, frequently asked tenants concerning the legal or practical issues of tenants and landlords. Property management resource centers also offer useful tips for landlords and valuable details about usual issues. Tenant injuries is a subject discussed by online property management resource centers, pointing out insurance facts and landlord liability. There are also legal updates to previous information offered on the website so that the landlords would be well informed about recent changes.
Landlords may be amazed by the fact that there is property management software available. This property management software is of great help for landlords with a few rental units and for management of big properties. In this way, you can have your rental properties organized, benefiting from the smart Windows based software. This popular property management software reminds you of expiring leases, late rent, providing extensive reports in various categories. Property management is made easier and more accessible with simple software that provides necessary and valuable information in due time.
There are also National Property Management Associations focused on personal property and fixed-asset professionals. These associations can offer training, educational opportunities as well as certification programs, all of them concerning the subject property management.
You can find information and assistance concerning agriculture, industry property management. There are property management divisions concerned with some particular branches: real property, personal property and physical property. Property management can become easier with support, implementation and monitoring of procedures, regulations and policies for the management of real and personal property.
Property management companies have to deal with multiple responsibilities and aspects of management of ownership of real estate. These companies offer to negotiate and stabilize the relationships between landlord and tenant. They also manage income and activities involving expenses, repair, maintenance and other aspects of the construction and development.
Property management is much more than a matter of responsibility, awareness and information. It requires time, intelligence and witness, great attention to details, but also management qualifications.
Filed under Real Estate by on Dec 15th, 2010. Comment.
December 10, 2010
Jason Kay asked:
If you own rental property and you do not live close to it or simply don’t want to deal with being a ‘landlord’ you may want to consider hiring a property management company. A property management company can help you with every aspect of managing your property and ensure that your potential tenants and renters are put through the proper application process, pay their rent on time, and have someone to call to take care of matters that arise in a timely fashion. Because there is so much that a property management company can do to save you time and thus money there are of course going to be fees involved with hiring a management company.
Property management fees can vary greatly from company to company but here are some of the fees you can come to expect when dealing with management companies:
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If you own rental property and you do not live close to it or simply don’t want to deal with being a ‘landlord’ you may want to consider hiring a property management company. A property management company can help you with every aspect of managing your property and ensure that your potential tenants and renters are put through the proper application process, pay their rent on time, and have someone to call to take care of matters that arise in a timely fashion. Because there is so much that a property management company can do to save you time and thus money there are of course going to be fees involved with hiring a management company.
Property management fees can vary greatly from company to company but here are some of the fees you can come to expect when dealing with management companies:
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Filed under Real Estate by on Dec 10th, 2010. Comment.
November 27, 2010
Nazir Daud asked:
The property management business is a really good idea for someone who wants to make a decent income without taking too many risks.
My foray into property management was purely by chance. I had about 15 flats in Dundee and employed a full time handy man to collect rents and sort out any minor repairs.
My friend Chris knew that my properties were well managed and he asked if I would look after his mother’s flats. I knew that she was not well and because of her health, in the last year half her flats had lain empty. I reluctantly agreed and started renting out her properties.
I managed to get her occupancy up to over 90%. My charging structure was very simple as I kept 10% of her rent and she also paid all costs. She was delighted with my service and told her friends who approached me to do the same for them. Being busy but not wanting to say no straight away I offered to provide the same service but at 15% of the monthly rent. To my surprise they agreed.
Word of mouth got around and soon I had to start turning people away as I was far too busy managing my packaging company to do property management full time! Had this business not been doing well I could easily have started managing properties full time.
I even managed to buy a couple of apartments at knock down prices when one of my clients wanted a quick sale after his tenants left. They offered me the properties for the same price they had bought them for a couple of years ago.
I knew the market had risen substantially since then and bought them straight away. I spent a couple of weeks doing them up and had them rented out in no time. When property prices started rising strongly I sold both of them, making decent money only to miss out on the real boom in prices!
If you have time on your hands why not consider managing other people’s properties? Be warned though that you are on call 24/7 if an emergency happens at any of the properties.
The property management business is a really good idea for someone who wants to make a decent income without taking too many risks.
My foray into property management was purely by chance. I had about 15 flats in Dundee and employed a full time handy man to collect rents and sort out any minor repairs.
My friend Chris knew that my properties were well managed and he asked if I would look after his mother’s flats. I knew that she was not well and because of her health, in the last year half her flats had lain empty. I reluctantly agreed and started renting out her properties.
I managed to get her occupancy up to over 90%. My charging structure was very simple as I kept 10% of her rent and she also paid all costs. She was delighted with my service and told her friends who approached me to do the same for them. Being busy but not wanting to say no straight away I offered to provide the same service but at 15% of the monthly rent. To my surprise they agreed.
Word of mouth got around and soon I had to start turning people away as I was far too busy managing my packaging company to do property management full time! Had this business not been doing well I could easily have started managing properties full time.
I even managed to buy a couple of apartments at knock down prices when one of my clients wanted a quick sale after his tenants left. They offered me the properties for the same price they had bought them for a couple of years ago.
I knew the market had risen substantially since then and bought them straight away. I spent a couple of weeks doing them up and had them rented out in no time. When property prices started rising strongly I sold both of them, making decent money only to miss out on the real boom in prices!
If you have time on your hands why not consider managing other people’s properties? Be warned though that you are on call 24/7 if an emergency happens at any of the properties.
Filed under Real Estate by on Nov 27th, 2010. Comment.
November 13, 2010
Aazdak Alisimo asked:
If you own any sort of property, be it residential or business related, you will need someone to manage it. The question you are probably asking is how professional management can help you?
So, what is property management? It’s the managing, or handling, of real estate property by someone other than the owner. Most often, it is handled by a management firm, that might handle more than one client’s real estate properties. Other styles include hiring someone to live on site and take care of tenants’ requests, as a building superintendent or other building manager – but this style of management has fallen out of favor in recent years.
It goes without saying that quality is a big issue with this service. A good management firm will act as a go-between for the real estate owner and the tenants, handling any questions and complaints that the tenants might have so that the owner is not forced to deal directly with them. This kind of service can include doing many different things, from collecting rent to hiring groundskeepers and repair people. They can keep an eye on repairs that need to be done, and suggest improvements on the property to the real estate owner.
In most states, those offering this service must be certified and licensed, most commonly as real estate brokers. This is especially true if the property managers (or someone in the the management team) is helping to negotiate leases, or collect rent on behalf of the property’s owner. In other states (such as Connecticut), there may be no licenses required for these tasks. Most property managers are still required to register with the state they work in.
Property managers can also be essential in keeping an eye on your property – making sure that no one is vandalizing your real estate, and taking care of problem tenants as well. The actions that manger may have to take can include eviction, as well as involving the authorities, tasks that a real estate investor may not want to have to do. They can also be used as arbitrators between tenants, when disputes arise that are not severe enough to involve the police or other authorities.
When done well, property management is the answer to a lot of issues that real estate investors might face. The management team can do the hands on work while the investors reap the profits.
If you own any sort of property, be it residential or business related, you will need someone to manage it. The question you are probably asking is how professional management can help you?
So, what is property management? It’s the managing, or handling, of real estate property by someone other than the owner. Most often, it is handled by a management firm, that might handle more than one client’s real estate properties. Other styles include hiring someone to live on site and take care of tenants’ requests, as a building superintendent or other building manager – but this style of management has fallen out of favor in recent years.
It goes without saying that quality is a big issue with this service. A good management firm will act as a go-between for the real estate owner and the tenants, handling any questions and complaints that the tenants might have so that the owner is not forced to deal directly with them. This kind of service can include doing many different things, from collecting rent to hiring groundskeepers and repair people. They can keep an eye on repairs that need to be done, and suggest improvements on the property to the real estate owner.
In most states, those offering this service must be certified and licensed, most commonly as real estate brokers. This is especially true if the property managers (or someone in the the management team) is helping to negotiate leases, or collect rent on behalf of the property’s owner. In other states (such as Connecticut), there may be no licenses required for these tasks. Most property managers are still required to register with the state they work in.
Property managers can also be essential in keeping an eye on your property – making sure that no one is vandalizing your real estate, and taking care of problem tenants as well. The actions that manger may have to take can include eviction, as well as involving the authorities, tasks that a real estate investor may not want to have to do. They can also be used as arbitrators between tenants, when disputes arise that are not severe enough to involve the police or other authorities.
When done well, property management is the answer to a lot of issues that real estate investors might face. The management team can do the hands on work while the investors reap the profits.
Filed under Real Estate by on Nov 13th, 2010. Comment.
November 12, 2010
Helen Cox asked:
Property management is an ever growing need as more and more people are now opting out of buying homes due to aspects such as the increase in mortgage prices. Renting is now becoming the more popular way of gaining property. It is because of the fact that more of us are now renting property that that need for property management has grown so much. It should be noted that property management requires time, intelligence and good attention to detail as well as management qualifications.
Property management is the job of looking after the properties that people rent out. This is the same for residential and commercial property. Whatever type of property you have as long as you are renting it; you will be able to get the help of property a management team.
Property management companies have the responsibility to deal with multiple responsibilities and aspects of the management and ownership of real estate. The duties of a property management company is to negotiate and stabilise a relationship between the landlord and tenant. The duties performed by a property management company are pretty much the same if your property is a residential or commercial but here we are mainly going to be looking at commercial property. Whether your property is an office block, a retail store or a bar/restaurant the duties that a property management team will perform for you are:
o Collecting rent
o Handle your letting
o Asses potential tenants
o Administration services
o Maintenance of the property
Commercial property management is an essential aspect of the property market if you want to increase the appeal or value of your property. It will allow you to get on with your renting business while the management company gets on with the day-to-day running. The extent of the service that is provided by a property management team is as flexible as you want it to be; it can be used as much as you need it to be.
A professional commercial property management service maintains and raises the level of occupancy, which enables a steady income. This is because a property management company keeps your commercial property in good condition in order to bring in business for the landlord. Your commercial property needs good curb appeal. This is achieved through keeping the structure, landscape and parking elements of the property in a clean and welcoming condition.
Your commercial property needs to be kept in good condition in order to attract customers to use your business. You need to ensure that your property is in good condition to attract businesses to set up shop within your property.
If you have invested within the property market then you will want to ensure that you are getting the most from your investment, which is where commercial property management can help you. By keeping a well run and well maintained property you will generate interest within your business and therefore attract more custom.
If you would like more information about what a commercial property management team could do for you get in touch with an expert company today.
Property management is an ever growing need as more and more people are now opting out of buying homes due to aspects such as the increase in mortgage prices. Renting is now becoming the more popular way of gaining property. It is because of the fact that more of us are now renting property that that need for property management has grown so much. It should be noted that property management requires time, intelligence and good attention to detail as well as management qualifications.
Property management is the job of looking after the properties that people rent out. This is the same for residential and commercial property. Whatever type of property you have as long as you are renting it; you will be able to get the help of property a management team.
Property management companies have the responsibility to deal with multiple responsibilities and aspects of the management and ownership of real estate. The duties of a property management company is to negotiate and stabilise a relationship between the landlord and tenant. The duties performed by a property management company are pretty much the same if your property is a residential or commercial but here we are mainly going to be looking at commercial property. Whether your property is an office block, a retail store or a bar/restaurant the duties that a property management team will perform for you are:
o Collecting rent
o Handle your letting
o Asses potential tenants
o Administration services
o Maintenance of the property
Commercial property management is an essential aspect of the property market if you want to increase the appeal or value of your property. It will allow you to get on with your renting business while the management company gets on with the day-to-day running. The extent of the service that is provided by a property management team is as flexible as you want it to be; it can be used as much as you need it to be.
A professional commercial property management service maintains and raises the level of occupancy, which enables a steady income. This is because a property management company keeps your commercial property in good condition in order to bring in business for the landlord. Your commercial property needs good curb appeal. This is achieved through keeping the structure, landscape and parking elements of the property in a clean and welcoming condition.
Your commercial property needs to be kept in good condition in order to attract customers to use your business. You need to ensure that your property is in good condition to attract businesses to set up shop within your property.
If you have invested within the property market then you will want to ensure that you are getting the most from your investment, which is where commercial property management can help you. By keeping a well run and well maintained property you will generate interest within your business and therefore attract more custom.
If you would like more information about what a commercial property management team could do for you get in touch with an expert company today.
Filed under Real Estate by on Nov 12th, 2010. Comment.
November 4, 2010
Kamyar Shah asked:
Property management companies are an exciting, dynamic and productive industry that many property owners and management property entities are actively engaged in. The management of real estate is often tied in to financial services and investment management as real estate and its management are highly valued commodities in todays competitive market system. The service of property management companies are not only a good field to become trained in, it is also a highly sought after service by brokers property investment firms and other entities seeking to maximize their return on investment by effectively managing their holdings.
Real estate land and property may be developed or held to await an increase in property value, and a management professional acts as an agent to maximize the holdings for longer term profits. Property management companies seek to hire the best professional management experts to secure added value to their own and to their clients portfolios.
Training with software for real estate has also proven valuable for individuals and companies involved in the modern market of management as this industry grows and its needs are constantly in change mode. Transaction management for real estate has taken this type of management and its day to day operations out of the hands of serious investors and handed it over to experts in the field. Managing the transaction alone when real estate is bought and or sold has specialized the maximization of profiteering in the industry and though management of real estate is a valuable component has placed the emphasis elsewhere on the commodities brokering side of the equation.
In an election year it is typically normal for investors, holders, and other consumers to be somewhat cautious when it comes to consuming and the managing of the real estate market slows down somewhat but this is typical consumer and investor behavior. While management of real estate remains a commodity in and of itself it doesn’t compare to the raw value of real estate and the need for property management companies to make the lives of do it yourselfer real estate owners lives easier. Without having to make a heavy investment in management fees proprietors can be self engaged in managing their own properties though this is not for everyone.
The old adage goes that, you get what you pay for, and for those who may have more to manage than just their own real estate holdings may find it worth the time and investments to hire a worthwhile property management companies to help them maintain the wealth liquidity and value of their real estate portfolios. Even in smaller communities since time is often equated with money per se it is in a property owners best interests and more cost effective to pay someone in order to have more personal time on their own for family hobbies and other personal and public interests.
Real estate and its effective management is a surefire way to improve your customers portfolios and increase long term wealth for those who are interested in maintaining leverage of their investments within different communities. Although the inherent goodness of typical human beings may sometimes be in question, one thing is for certain and that is that they will always need land and property and will be willing to pay well for it and for its management.
Property management companies are an exciting, dynamic and productive industry that many property owners and management property entities are actively engaged in. The management of real estate is often tied in to financial services and investment management as real estate and its management are highly valued commodities in todays competitive market system. The service of property management companies are not only a good field to become trained in, it is also a highly sought after service by brokers property investment firms and other entities seeking to maximize their return on investment by effectively managing their holdings.
Real estate land and property may be developed or held to await an increase in property value, and a management professional acts as an agent to maximize the holdings for longer term profits. Property management companies seek to hire the best professional management experts to secure added value to their own and to their clients portfolios.
Training with software for real estate has also proven valuable for individuals and companies involved in the modern market of management as this industry grows and its needs are constantly in change mode. Transaction management for real estate has taken this type of management and its day to day operations out of the hands of serious investors and handed it over to experts in the field. Managing the transaction alone when real estate is bought and or sold has specialized the maximization of profiteering in the industry and though management of real estate is a valuable component has placed the emphasis elsewhere on the commodities brokering side of the equation.
In an election year it is typically normal for investors, holders, and other consumers to be somewhat cautious when it comes to consuming and the managing of the real estate market slows down somewhat but this is typical consumer and investor behavior. While management of real estate remains a commodity in and of itself it doesn’t compare to the raw value of real estate and the need for property management companies to make the lives of do it yourselfer real estate owners lives easier. Without having to make a heavy investment in management fees proprietors can be self engaged in managing their own properties though this is not for everyone.
The old adage goes that, you get what you pay for, and for those who may have more to manage than just their own real estate holdings may find it worth the time and investments to hire a worthwhile property management companies to help them maintain the wealth liquidity and value of their real estate portfolios. Even in smaller communities since time is often equated with money per se it is in a property owners best interests and more cost effective to pay someone in order to have more personal time on their own for family hobbies and other personal and public interests.
Real estate and its effective management is a surefire way to improve your customers portfolios and increase long term wealth for those who are interested in maintaining leverage of their investments within different communities. Although the inherent goodness of typical human beings may sometimes be in question, one thing is for certain and that is that they will always need land and property and will be willing to pay well for it and for its management.
Filed under Real Estate by on Nov 4th, 2010. Comment.