Category: property

Fees for Professional Property Management Services

How much should one pay for professional property management services? It’s a good question. And the answer is… It depends, but hopefully it doesn’t cost not too much. At least that’s what most people would think.

There are three basic services for which most property managers charge a fee:

1. A leasing or often called a listing fee. (This is also sometimes called a procurement fee.) In any case this has to do with the tenant placement function.
2. Monthly management fee. This covers the cost of periodic interaction with the tenant (sometimes daily).
3. Annual lease renewal fee. Usually only charged when the management company is successful in negotiating a renewal at the end of the lease term.

Look at these incrementally, but also consider them collectively over a year’s time. These fees can be easily compared among competing agencies. You can be the judge of what’s reasonable. Keep in mind that such fees do vary from market to market. Be careful not to get hoodwinked into selecting the cheapest solution simply because it is less. Cut-rate management services may be just that, cut rate. The poor quality of services that you receive may explain the discount. A quality property manager can save you tons of money on the back end.

What you need to look for, and maybe even specifically contract for, is that there are no undeclared fees. Those are the ones that pop up and bite you when you least expect it. Read your management agreement carefully. Don’t get surprised!

Probably the fee that is most often hidden, or perhaps not fully disclosed, is the cost of home maintenance services arranged for by the management company. It is not uncommon for companies to add a surcharge to maintenance and repair invoices. For many property management companies this becomes a secondary or even primary source of profitability. The landlord is oftentimes completely unaware of these costs at the time they agree to work with the management company, and they may never become aware of what’s happening. Sometimes, even when such fees are disclosed, the disclosure language is so heavily couched in legalese that one would need a law degree simply to understand.

Get your prospective property manager to fully explain all aspects of the arrangement and make sure that what they say is also what’s printed in the management agreement. If the manager cannot explain everything to your satisfaction, move on to another manager that can. Don’t get caught paying for services your neither want nor need.

Things You Must Consider When Choosing A Commercial Or Residential Property

Modern property developments are elegant and quite sophisticated that they can help create that professional image around your business or take your lifestyle to a whole new level thanks to technology. The properties now come with everything that is bound to make every day living and working easier for all which is why you can now find plug and play offices that are ready for occupation and running for businesses and homes that are fully furnished so you can just continue with life comfortably. However, the property options can be numerous and making factoring in a few property aspects is important when making a decision.

The Tenure

Land scarcity has led to many properties getting offered on leasehold although you can still find some freehold properties available to you. Leaseholds are cheaper compared to freeholds but you need to put all your need into perspective before should a tenure that works best for you. Consider your mortgage options when thinking of the tenure so that you can make the best decision also based on your financial limits and abilities.

The Location

The location of the property is particularly important if you are looking for freehold agreements. It is a factor that should be considered both for commercial and residential properties. Not only will the location determine the cost of the property, but it can largely determine the suitability for your business and the kind of home you have in mind. The secret is to choose a location that matches your personal preferences and offers you all convenience whether they are work related or home related. Also important to consider is the possibility of other developments around the property in the future and how that is going to affect you or your business of how comfortable you are still going to be when such developments take place.

The Size

If you are choosing a property housing several businesses of residential units, then you should consider how comfortable you are with the size of the property. If you love some peace and quiet around your home, then you are better off choosing a property with fewer units. The same goes for your business because it can determine the number of businesses that is likely to be established on the same property. Apart from the size of the building, look at the interior spaces of the unit you choose and how suitable the sizes are for the needs you have. Be sure that the size is worth the cost of buying or renting.

Additional Costs

Remodeling, renovating and maintaining the property you are interested in can lead to additional costs you initially might not have thought of. Remember that as the property owner, you are responsible for upkeep and workability of your property and you therefore should ensure that you acquire the property in the best possible condition or when you are fully aware of the additional costs it will attract and you are comfortable with it.

Find the Best Ways to Settle Your Property Deal

More often than not individuals think that it’s genuinely difficult to manage properties. It can be household or business property; however at whatever point you are going to offer or purchase one, you may think that its troublesome for different reasons. In such conditions individuals like to have some expert help that can recommend them the right way of managing real estate. Looking for the best property settlement administration for your property offering procedure can be less demanding these days with the assistance of the web. It allows you to figure out the opportune spot where you can acquire the best administration.

On the other hand, there are some sure focuses that one must remember while searching for the expert land settlement operators. When you begin your pursuit, you can locate a not insignificant rundown of organizations that give such administrations, however it is evident that not every one of them are similarly experienced and adequate for your occupation.

While looking for the right agents, you must remember some points.

• The notoriety of the firm: The property settlement organization must have a decent notoriety in the business as an administration supplier. You ought to check the quality and dependability of the organization from their current or past customers. This could help you to see how great they can be for your property managing

• The experience of the group: Since managing properties is an intense undertaking, the group you employ must have fitting knowledge in this certain field. They must be mindful of the most recent reports with respect to property settlement and offer you the best service.

• The capacity of comprehension that you require: This is profoundly needed for any administration supplier who offers benefits that are absolutely customer situated. They must comprehend what precisely you need and how to offer you the right help.

• The capacity to offer customized administrations: The supplier of such administrations ought to have the capacity to offer customized administrations for different customers. Diverse customers would accompany a few sorts of issues while managing properties. The organization must be ready to offer them benefits that are singularly intended for them and satisfy their need

• Professional state of mind: The group you enlist must handle the whole situation with tact. They must keep the correct record of the considerable number of dealings and keep you updated about each and every point of interest of the same. They must keep steady correspondence with you as a customer and know your necessities.

• A wide cluster of administrations: As a supplier of property settlement administrations, they must offer a wide exhibit of help to their customers. It must be a one stop answer for all the necessity that is identified with any sort of property arrangements.

• Trustworthy and effective: Lastly; the group must be dependable and productive towards their occupation. Since, managing properties is a high-risk work, they must be faithful to their customers and perform their undertakings with proficiency

Real Estate Property Management

One of the biggest decisions you will make as a landlord is whether you should hire a property management company or not. Many landlords manage properties on their own or with the help of an employee, such as a resident manager. Sometimes it happens that landlords need more help when property issues are complicated. This is when landlords need to seek the help of real estate property management companies.

Real estate property management companies can be a huge asset to your company but they don’t come cheap. They deal directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions. A good property management company brings its know-how and experience to your property and gives you the peace of mind that comes with knowing your investment is in good hands.

A real estate management business is an independent contractor and this helps you avoid the hassles of being an employer. Along with the benefits, hiring a real estate property management company also comes with a drawback of being an expensive one. If you are living far from your rental property, it will be difficult for you to handle property issues from afar. Most of the landlords look forward to finding good tenants to maintain their property in good and attractive condition.

On the contrary, there are few landlords who look at their property purely as an investment and are not interested in lending them to any tenants. In this case, the best option is to hire a real estate property management to handle the property and manage the related issues. Even if you enjoy hands-on management, you will run out of time to concentrate on the growth of your business which will put you in a situation to hire help for your property. Hiring help of a real estate property management company is an attractive option if you can afford the fees for the same. While interviewing management companies, expect to hear quotes ranging between 5% and 10% of what you collect in rent revenue.

The Best Qualities of a Property Manager

The importance of property managers is not new to anyone, especially to the landlords, buyers, sellers and tenants. Real estate management is a career profession and is booming in every corner of the world. The manager works either directly for the owner of real estate properties or works for a real estate management firm. Nowadays, owning a rental property anywhere on this planet requires the assistance of property management services which are professional and efficient. Not all managers have the same competency to find you a rented house or a house to buy. Hence, you need to consider certain things before hiring a manager:. Wondering what are these? Check out here:

Reliable and ethical

Property managers need work on a code of honour while they deal with other people’s trust and money. While collecting rent, laundry machine money, maintenance charges, security deposits, etc. the managers should maintain a fiduciary relationship with the property owner. While the owner entrusts his money and property, the manager must be honest with these. The managers must perform at the highest level of integrity.

Local ordinances and state laws

There are separate land laws of every place and every country. The Government usually decides on how the real estate is to be managed. The manager needs to stay updated with the legal requirements of managing real estate so that he or she can take right decision and correct action whenever required.

Organised and detail oriented

The property manager, while collecting rent, must also ensure that the rent is paid and updated in the tenant’s account as “Received”. He should maintain financial records with details of each and every transaction. Also, it is their duty to remind the tenants about the rent increase, lease renewals, lease expirations, etc. In short, the manager must be able to multi-task based on priorities.

Technical competency

In today’s date, a property manager should have computer competency along with other technical skills like typing, driving, etc. The methods of mail merging, emailing and faxing need computer knowledge. Also, he or she should be in complete command of basics of computer usage. Only then they can efficiently handle all tasks.

Communication skills

The property managers must have good communication skills as they have to deal with people coming from all walks of life and all corners of the world. Hence, the managers must be able to document their cases in front of judges, negotiate with vendors, and talk to owners and tenants even when they are in bad state of mood. They should always deal with their clients in professional manner.

Flexible mind

The managers must have a flexible mind as this is a volatile profession. They should have ability to accept changes of law and have positive and unbiased attitude, obey fair housing laws, etc. They should not mistreat tenants.

Is It Better To Sell Your House To A Property Manager?

Property agents are what many people know and they help you with the selling process by handling interested buyers and handling the transactions all the way to closing after which you get your money for the sold property. In some cases this is a process that can take long because it means waiting until a buyer who is interested enough and likes what he sees comes along and is willing to go all the way. Depending on the location of the house and its current condition and other factors, it can take a considerable length of time to sell even though you eventually will sell.

Fortunately, apart from the property agents that can help you sell, there are property companies and managers that actually offer to buy the property directly from you easing up the process for you. Usually the condition of your home is not a factor because they buy it as it is and within a very short period of time so you can get your money fast and easy. This type of managers and property companies are becoming very popular and you might be wondering why it is better to sell your home to them. Here are some of the reasons why they might be the best path for you to take.

1. The property buyers close the deal as soon as you reach an agreement on the value of the house. This means if you do not have the luxury of time to wait until you find a willing buyer, you can still sell and go ahead with the other plans you have. They are the ultimate solution when you need money urgently or need to sell and relocate immediately.

2. They managers do not have any restrictions when it comes to the condition or location of the house. They simply value it according to the current state and give you the amount it really is worth without you having to make any renovations or repairs. They handle other property issues after the property is under them. This is nothing compared to individual buyers that want everything to be in top shape before they agree to buy the house, meaning you would need to do repairs and make all necessary changes within the property for sale.

3. The managers offer faster transactions. They are experienced in what they do and will therefore make the process as quick and easy as possible for you. You do not have to worry about long closing processes you might not have time for. Some are so good that they can do the survey, valuation and close the deal within a day and you will have your money to continue with any plans you have.

4. They offer very discreet services. Selling your home is sometimes not very pleasant, especially when you are forced by circumstances that are not very good to do so. The best thing about selling to the property managers is that the process remains short, discreet and very private to protect your interests.

Selling Your House To A Property Manager – What To Consider

Selling a house is not as easy as it might seem. This is a process that can take a long period of time, especially if you have a home that is not as modern as many buyers would want it to buy. But when you choose to sell it out to a property company or manager, then the process is made less tedious for you because they buy it as it is without you having to make any additional changes to its current state. But even when choosing this seemingly easier path, there are still things that are very important for you to consider.

The options

The least you can do when selling your house is being comfortable with the path you choose to take. You have the option of selling the house on our own, using property agents or selling it fast and easy to the property managers. Weigh every option together with the pros and cons before making the final decision.

The fees

Usually property managers and buying companies do not charge you for consultation, valuation of the house or even a survey. They are more interested in closing the deal, but it is still very important that you check and confirm that you will not be charged; or at least be aware of any charges that could be applicable.

The house value

You might be in desperate need of quick money and therefore want to sell the house fast, but this should not mean getting a price that is too low for the value of the house. You should actually have your own valuation done privately so that you know how much the house is worth depending on the current market prices and the condition. When you know the value, then you can tell when you get a good deal from the manager or property company you are selling to. You should get a quick sale without getting ripped off so do your homework to get a good deal in the end.

The speed

One of the reasons why many homeowners choose to sell to property managers is because the selling process is made speedy in that it is possible to close the deal within 24 hours and have your money ready for use. The length of time the process takes however, varies from one buying company to another and it helps to know beforehand how much time you are looking at before you have your ready cash at your disposal. Your own urgency for the sale should help you choose the best property manager to sell to for convenience.

The terms

Most do not have any restrictions when it comes to the condition of the home, but you should still ensure that you know the terms of service and whether there are things that do not count in the sale. The terms you get should be favorable in the sense that you get the true value of the house, regardless of how bad its condition might be.

Reasons for Hiring a Property Manager

The dreaded phone call comes in that your tenant has a clogged toilet at 8pm at night. What now? So you scurry over to your rental property to determine if you can fix it. You check it out, maybe even try to plunge it. Nothing happens, still a slow drain and a gurgling noise. At this point you have wasted over an hour of your time, time that you should be spending elsewhere.

You shrug your shoulders and tell your tenant you will call a plumber as they will need to snake the drain. Giving your tenant the benefit of the doubt that there are likely roots in the main line which is causing the gurgling. You finally get a hold of a plumber that will be there sometime tomorrow between the hours of 1 and 4 pm… and you need to be there to authorize work. Ugh! Now what?

So you take the afternoon off of work and wait for the 30 minute courtesy call that they are on their way. You get the call! You head over to the rental property and meet the plumber, the tenant says that the slow drain and the gurgling is still happening. The plumber looks for the clean-out, but can’t find it and you aren’t sure where it is. So the plumber goes to the roof with his snake. 30 minutes later he comes down with a child’s small toy that had been flushed down the toilet. OK, not great, but at least it’s fixed for a couple of hundred dollars and not tree roots. The plumber goes back inside to test the toilet and comes back out with bad news… still won’t flush!

So now the plumber says, do you want me to pull the toilet? That’s another charge. You shrug your shoulders and say yes, because what else are you going to do. The plumber takes his snake inside and pulls the toilet. He starts his snake and out comes a headless child’s doll covered in toilet paper from about 1 foot down the pipe.

Now the plumber comes back out and says, here is what I found. Since the toilet is off do you want me to camera the drain in the case there are more items down there. Of course you say yes, cause if he puts the toilet back then has to come back to do it that is another charge.

Plumber comes back out and says the camera showed nothing else is in the drain. You sigh and he fills out his paperwork along with charges of around $300-400. He puts in his report the issues and the apparent abuse caused by the tenant. You ask him to put as much detail in the report as possible so that you can charge back to the tenant, and he obliges and says good luck with that.

At this point you are into this little project for over 4 hours of your time, half a day off work spent standing outside of your rental, and a few hundred dollars because your tenant’s child decided they didn’t want their toys anymore.

And people say Property Management is to expensive.

Granted you still probably would have paid the plumber, but at a discounted rate. The soft costs are your time, energy, paid time off, and the stress of the situation.

Property Management Made Simple

A fast, simple and effective way for landlords to manage their property portfolio with minimum hassle.

Being a landlord or a property manager can be an arduous task. There is usually an endless list of jobs that need to be taken care of, whether you’re managing a single property or a vast portfolio. There are several landlord property care apps offered by property management groups to help property owners in managing their property and keep everything running smoothly, taking the stress out of daily tasks.

WHY DO I NEED AN APP FOR THIS?

Downloading the app provides a simple and efficient way for you to manage your properties. It’s intelligently designed, easy to use features have been developed by the experts in app development to cater for your specific requirements. With its key features you can digitally take control of all tasks with a swipe of your finger.

KEY FEATURES:

  • Managing Tenants
  • Monthly rental payments
  • Utility management
  • Rent review
  • Property inspection reports
  • Annual safety tests
  • Lease management
  • Print yearly/ monthly taxable finances.

MANAGING TENANTS AND RENT

When it comes to managing rent owed and tenants the app couldn’t make it simpler if it tried! You go to the sub section you need, click the icon and straight away you can add new tenants, storing their personal information i.e. phone number and address, as well as their moving date and contract end. As for rent you merely need to select the property in your portfolio, specify the date, rental fee and Estate agents commission and you’re sorted. This saves a lot of time and productivity in the long run, meaning you’re not chasing any overdue payments or tenant details.

TAX MADE SIMPLE

Everyone knows that trying to keep on top of yearly tax returns can be a nightmare, but this is just another reason why this app is extremely beneficial. It allows you to do your own book-keeping on the move, by logging all of your income and expenses, when and where you necessary, to keep on top of your accounts. In the long run this will be more beneficial for your accountant or even for yourself if you organise your own accounting. Moving forward, this means you can review monthly and yearly reports with the tap of one finger, as well as track your taxes making your End of Year returns report easy to access, and print off for your benefits.

The same format is used when logging Expenses, again these are all kept in one place, and you can easily input property expenses through their individual property details and log important expenses such as Interest only mortgage, Capital Mortgage, Repairs, Insurance, Cleaning, agents involved etc.

ADDITIONAL SUPPORT

An additional benefit is that you will have a dedicated support team which promises to assist you with any technical and non-technical help that you may require. This gives you reassurance and trust that your portfolio details are in the right hands, and that all information is deemed confidential, to which you will only have access to, and none of which will be shared to other Property Managers.

In conclusion the Landlord Property Care app is truly a sensational digitally advanced way to manage all your business related requirements from your phone, and is considered to be the way forward in Property Management advancement.

10 Property Management Tips

Are you looking for some useful property management tips? If so, you may want to read the following 10 tips from experts in the field. With these tips, managing property will be a lot easier for you. Read on.

Provide Important Information

Make sure your customers and clients have access to the information about the properties. If you really want to get the listing, you should be able to share all the relevant information in an efficient manner.

Be Punctual

You should be committed as far as making arrangements for a meeting or appointment is concerned. Try your best to get to the meeting point at least a few minutes earlier. This is a good way of leaving great impression on your clients.

Presentation

You should be well dressed when seeing your clients. This will encourage your clients to treat you well. Moreover, your dress code will tell a lot about you.

Honesty

You should be honest while providing reports and statistics about your properties. Providing misleading or false information to clients is the best method to destroy your business. What you need to do is find a strategy to deal with the situation and get a solution instead of providing false information.

Marketing

You should market your property in an effective way. The vender may have unrealistically high hopes, but you should be realistic and shouldn’t agree to the price offers without taking the time to think about everything. After all, you don’t want your property to sit vacant for months just because the price tag was too high.

Advertising

Advertising your property is of great importance. Make sure the advertisement is available at the right time. Therefore, you should be ready with a draft on time. Aside from this, it’s better that you get approval from the vender prior to uploading the advertisement on your site.

Photography

Make sure you take some professional photos of the properties and upload them on your site. Ideally, it’s a good idea to take at least 4 pictures of each property. The pictures should be taken from different angles. Putting a few videos along with photos is also a great idea.

Stay in Touch

You should send updates and reports to the property owners on a regular basis. As a matter of fact, maintaining great relationship with your clients pays. Losing a client is easier than gaining a new one. Therefore, you should stay touch with your clients.

Database

You should know your database. Your prospective clients should receive the same level of respect as do your existing clients. Therefore, it’s a good idea to take a look at your list of clients from time to time.

Background checks

Make sure you do background checks on your tenants. What you need to do is do rigorous background checks on the personal information, tenancy history and employment history of your tenants. This is a great way of making sure you are on the safe side.