How do you hire a property management company ? What’s the process you go through?
Here is a review of the 7 steps to finding the right property management company:
1. Hire a company that runs it like they own it.
2. Hire the best people. Shop the competition.
3. Hire a company that has a proven track record. Do your due diligence.
4. The have to work well with you and communicate. Have a good relationships with them.
5. Hire someone that is connected and has alot of resources, local, political, vendors, accounting. People to bring alot to the table and that will help you w ith your property.
6. Make sure they know your property intimately. Hire someone that is managing properties in your market.
7. Know your property type. Hire someone that specializes in your property type.
Should you hire company that is a certified property management company? Only if the above items are fufilled. If they have a certification on top of that? That’s just the cherry on the cake. And lastly, Should you manage a property yourself? Well if you’re experienced, then of course you can. But if you’re new to the business then consider hiring a professional to do it.
How do owners of a property decide to go with a certain Property Management company? The best way to start is with research. Not only should you find out what the company does for your property but you should inquire as to how they go about finding the proper tenants for your property. According to this video you should:
1. Take a decent number of pictures.
2. Filter inquires, prequalify applicants answer questions.
3. Show the qualified applicants the property
4. Receive and review applications, do credit searches, employee verifications, background checks and further follow up.
5. Ensure that the company will be thorough in going over the lease with the new tenants.
It is important above all else, to insure that the company you choose will be thorough and treat this property as if it were there own.
ANNOUNCEMENT: Anwar has launched his new website Anwar Barbouti Now which is a site dedicated to bringing you the most updated news and happenings of the world of Property Management. Anwar will be scouring the web for video, news, articles and pictures all related to property management.
Recently covered, for example, was an article from the New York Times Family Property Raises the Question of Managing for a Legacy which is all about property management as the family business.
Anwar also brings in other property managers such as Nicholas Meyer who discusses managing Downtown Suites in Vancouver BC.
If you want to keep up with all the news from the Property Management world you’ll want to add this one to your feed.
Now is a good time to expand your business into a larger building, if you need more space or are looking for a better location. In today’s market there is room to negotiate contracts with owners who have been sitting with empty buildings for a while, and are looking for new tenants.
When traveling around town looking for properties, do not settle on just one property. Find two of three different locations that would suit your business and draw up a plan for each location. The plan should include what you feel the property is worth, how long a lease you intend to accept and how short a lease you would not accept. Know the area well before even talking to the owner or leasing agent. Know what other leases are going for in the area and what other types of businesses are going to be around yours in each location.
Once you have chosen the one property that seems to suit your needs the best, do not get emotionally attached and show that you are anxious to lease this particular piece of property. You will want to know exactly what the lease will cost you per month and what the maintenance charges are going to cost. Your only emotion to this property should be asking yourself if this really is the right property for your customers.
Compare all the properties you have see that you like and write up a positive and negative sheet on each property. Know the square footage of each property and what the cost per square foot of each one is per month. Include the maintenance fees, and the terms of the lease on your comparison sheet. These facts will come in handy when you decide to make an offer on one of the properties.
Negotiate your lease terms. Make sure you understand all the terms and decide if these terms are ones you can afford. Ask for a copy of the lease so you can go over the lease completely before signing anything. You will want to take the lease home and give it some thought and perhaps discuss it with any legal advisor you may have to help you understand the lease. Commercial leases are very different from residential leases and some are extremely complicated. Every commercial lease if different and you can not compare it to the one you already have on another piece of property. Do not sign a lease until you have all the expenses in writing.
The industrial real estate market is competitive, and is not as dodgy as the current residential real estate market. Depending on the type of building required for the business, industrial real estate is generally readily available and easy to acquire, with the right help and research.
The best place to start researching industrial research is to start with an agent who specializes in the field. An agent who has been working in the field for a while and has developed a good reputation can assist in finding the right type of industrial real estate for a client, even if the client is unsure of the exact type of building or structure that will work best for them.
It should also be noted that certain kinds of buildings and structures may require special permits before they are leased or purchased. Potential clients looking for industrial real estate would be wise to research the laws and codes in the city they are shopping in before they begin their search. A knowledgeable agent should be able to inform their clients what permits need to be procured and assist the client in obtaining said permits and licenses. Agents may charge extra or these services.
Many cities and towns have their industrial real estate in one area of town. These areas tend to contain the factories and mills for the entire town. They are also a hub for warehouses and other types of industrial real estate. It is beneficial to go look at these areas to see what types of real estate are available. That way, a client can have an idea in mind before sitting down with an agent. It will also give both client and agent an idea of a price budget that will determine the price range comfortable to the client.
Information on buying and selling industrial and commercial real estate is readily available online. State and city laws and codes can be looked up, as well as some of the available buildings and properties. Clients can frequently find exactly what they are looking for, with the help of technology, and conventional legwork. Industrial real estate is a lively market with several options. When researched properly, the right industrial real estate can be the cornerstone to business success.
Commercial property owners often decide to use a property manager or management team to take care of their properties. This can be especially true if the owner has a number of properties to manage, lives far from the property or just does not want to deal with the headaches that come with running a property. Many tasks must be handled for a property and sometimes the best person to handle this type of job can be a professional manager. A commercial property manager, such as Anwar Barbouti, will act on an owner’s behalf and take care of the property. They are paid according to various commercial property management fees that are charged to the owner.
Property management work can cover a variety of functions. Some managers handle all transactions relating to the property, while others may only take care of a few. This choice is something that the owner generally decides and works out with the manager or management team. One of the main tasks that most handle is collecting monthly rents, dealing with nonpayment issues and either depositing the money or forwarding it to the owner. Property managers also may handle the advertising, checking and interviewing of new tenants. A property manager may also be in charge of dealing with maintenance issues, preparing budgets and other issues.
Because there is such a wide assortment of functions, commercial property management fees can vary a great deal. In some cases, the fee may be charged based on a percentage of the rents paid for the property. Others may charge a flat rate per property they manage. In addition, other services may breakdown their fees into charges for getting a new tenant, setting their account up, and then a separate fee for maintaining and managing the account with the tenant afterwards. They may also charge separate fees for handling maintenance issues and other tasks. Some management companies will also charge a fee even if the property is vacant. The way commercial property management fees are set up really depends on the company being used and the needs of the owner. It is therefore very important that both parties discuss this issue fully, before the company is hired.
A property manager or management team can be a great asset to an owner of a property. They can handle an assortment of tasks and this can make life much simpler for the owner. Before the company is hired, it is best for both parties to come to an agreement on the types of commercial property management fees that the company will charge to the owner.
The Commercial Real Estate Business in Houston
Effective in 2012, Houston’s commercial real estate outlook was more promising than that of the rest of the U.S., but with a cautious eye. Each sector of Houston’s commercial industries which includes healthcare and research institutions, energy, science centers, sports facilities, performing art construction, gas and oil construction, educational institutions, manufacturing, aeronautics, transportation and the Port of Houston have all seen increased construction throughout the city.
The year of 2010 brings us to a resurgence of commercial real estate, with the government’s encouragement and continuation of deep water oil drilling which resulted in Houston’s population expansion and industry growth. Land expansion and global manufacturing interest in Houston has seen a construction boom in North Houston, The Woodlands and Uptown. The state of Texas’ economy has surpassed many U.S. states because Houston’s lending institutions have opened their doors to more loans at lower interest rates.
Houston’s Association of Realtor’s Commercial Division, has forecasted that 91,000 additional jobs will be available at the beginning to the middle of 2012, with a zealous commercial interest in building on vast land for medical interests and multifamily construction. Houston has ranked No. 18 for its economic growth, which takes into account the strong growth in construction in and outside of the Beltway and the Loop. These commercial real estate ventures include corporate buildings around Towne Lake, downtown Houston, and the Galleria in the Uptown area.
Houston’s Highland Village has welcomed a stand alone Apple Store, prompting an increase in the tourist industry and the hiring of new employees in the hotel industry. In the cities of Pearland and Manvel in the southern Houston area, residents will see a huge oil and medical construction growth, bringing new employment figures. The construction of the new BBVA Compass Stadium has created over 1,500 jobs with additional jobs scheduled and the Stadium will also generate millions of dollars for the city of Houston.
The Woodlands growth will be exponential with Class A oil companies Canada and the U.S. announcing their move to Houston to open towering headquarters and office parks, between 2012 and 2014. When looking at the evening news we don’t equate what the story is about to where we live, but Greater Houston does. The unrest in Iraq and other Middle East nations find that American interests are closing down and returning home to Houston, re-establishing corporate offices. Houston’s commercial real estate stands for continual growth with its partnership with Comcast and its SportsNet multi-million dollar production facility.
Greenwich Management Believes in True Customer Satisfaction
Looking at Commercial Real Estate for Your Business Needs