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The Las Vegas Valley, a bustling hub of entertainment and luxury, is also a center for dynamic property development. With its vibrant economy and growing population, the region presents a unique landscape for real estate growth and innovation. RAM Real Estate Asset Management, a premier brokerage and property management firm with over 125 years of collective experience, sits at the heart of this evolution, leading the charge in shaping the future of property development in the area.

As we look forward, the landscape of property development in Las Vegas is poised for transformative changes. Factors such as technological advancements, sustainability initiatives, demographic shifts, and economic trends are all playing pivotal roles in molding the future of this industry. These elements are not just influencing the types of properties being developed, but also how they are managed and marketed.

This article will explore the current trends in the Las Vegas property market, predict future developments, and discuss the strategic responses by industry leaders like RAM Real Estate Asset Management to these emerging challenges.Insights from experts and industry forecasts provide a comprehensive overview of the future of the Las Vegas Valley’s real estate sector.

Current Landscape of Property Development in Las Vegas

Property development in Las Vegas has experienced a significant resurgence. The area, renowned for its vibrant nightlife and luxurious resorts, is also seeing a boom in both residential and commercial property markets. RAM Real Estate Asset Management shows keen interest in diverse property offerings, ranging from high-rise condominiums to expansive master-planned communities.

Recently, the housing market in Las Vegas has shown robust growth. According to data from the Greater Las Vegas Association of Realtors, home prices in the region have been steadily increasing,  reflecting strong demand driven by both local and interstate buyers

Emerging Trends in Property Development

Sustainable Development

Sustainability is becoming a cornerstone in property development across the globe, and Las Vegas is no exception. Developers are increasingly integrating eco-friendly materials and energy-efficient systems into their projects.

For instance, solar panels and water-efficient landscapes are becoming commonplace in new constructions. This shift not only caters to the growing environmental consciousness but also reduces long-term operational costs, making properties more attractive to potential buyers and renters.

Smart Homes and Technology Integration

The rise of smart home technology is reshaping property development and management, starting with automated systems for lighting, security, and temperature control. High-tech advancements also include smart thermostats, which help in energy conservation, and advanced home security systems that provide better safety. RAM Real Estate Asset Management is at the forefront, incorporating these technologies to attract tech-savvy consumers and enhance living experiences.

Mixed-Use Developments

Another significant trend is the rise of mixed-use developments. These projects combine residential, commercial, and sometimes cultural facilities into a single complex. The appeal lies in the convenience and vibrant lifestyle these environments offer. Downtown Las Vegas has seen an increase in such developments, which are becoming hotspots for both living and entertainment, thus revitalizing the area and encouraging economic growth.

Factors Driving Future Growth

Population Growth

Las Vegas continues to attract a diverse population due to its robust entertainment industry, favorable tax laws, and relative affordability compared to other major U.S. cities like Los Angeles and San Francisco. This influx is a primary driver for property development, as the need for housing and services grows. Forecasters predict that the population in Clark County could reach 2.8 million by 2035, a significant increase from current figures. This growth necessitates substantial development in both residential and commercial sectors.

Economic Factors

Las Vegas’s economy is diversifying. While gaming and hospitality continue to be pillars, sectors such areatechnology, health, and green energy are emerging, bringing new professionals and requiring different kinds of development. Economic diversification is also making the area more resilient to sector-specific downturns, thereby maintaining the stability of the property market.

Infrastructure Improvements

Substantial investment in infrastructure, such as the expansion of public transit systems and the development of the Las Vegas Global Business District, significantly improves property values and attracts commercial investments. Improved infrastructure makes the area more accessible and desirable, directly impacting property development strategies.

Challenges and Opportunities

Regulatory and Zoning Issues

While opportunities abound, developers must navigate complex regulatory and zoning landscapes. Changes in land use policies and building codes can significantly alter project scopes and timelines. Staying ahead of such regulations and sometimes actively engaging in the legislative process is crucial for successful development projects.

Market Volatility

Like many markets with rapid growth, Las Vegas faces potential volatility. Factors such as fluctuating interest rates, economic shifts, and political changes can affect market stability. Developers and investors must be adept at anticipating these changes and adapting their strategies accordingly to mitigate risks associated with market fluctuations.

Predictions for the Future

Growth Areas

The Las Vegas suburbs like Henderson and Summerlin  are expected to see significant expansion. These areas offer more space for large-scale developments, attractive to families and individuals looking for residential properties away from the hustle and bustle of the city center.

Innovative Projects

Future projects in Las Vegas are set to include more than just traditional housing or commercial spaces. Expect to see developments focused on enhancing community engagement and environmental sustainability. Projects incorporating green technologies and designs that foster community interactions are likely to define the next wave of developments in the region.

Innovative Projects on the Horizon

In Las Vegas, the concept of an ordinary real estate development is constantly being redefined. The city is already witnessing pioneering projects that blend technology and community living. These innovative ventures vary from high-tech office spaces to community-focused residential setups, which not only cater to a high standard of living but also foster a sense of belonging amongst their residents. For instance, the creation of ‘community hubs’ integrates public parks, shared workspaces, and amenities promoting both physical health and professional productivity, enriching the community experience.

Emphasis on Green Living

Sustainability continues to be at the forefront for future Las Vegas property developments. The increasing preference for green buildings is evident by the rising numbers of LEED-certified buildings taking their place in the city’s skyline. Moreover, government incentives for developments incorporating sustainable practices are enticing more developers to consider environmentally friendly solutions in their construction plans. These include high-efficiency cooling systems, water recycling plants, and the use of renewable building materials that contribute both to environmental conservation and operating cost reductions.

The Boom in Residential Properties

Las Vegas is experiencing a residential property boom, attributed primarily to its expanding population and economic diversification. The demand for diverse residential options, ranging from luxury apartments to affordable housing, is increasing. This shift has prompted developers to focus on creating residential properties that offer more than just living spaces — they are designed to enhance lifestyles. These properties often include state-of-the-art gyms, community gardens, and pet-friendly spaces, reflecting the modern dweller’s lifestyle needs.

Technology at the Core of Real Estate Developments

The integration of advanced technologies into property development isn’t just about adding value or appeal; it’s becoming a necessary aspect of real estate in Las Vegas. From AI-based predictive maintenance in high-rises to IoT-enabled homes that allow residents to control their environment with their smartphones, technology is at the heart of the new developments. These technological implementations are not just luxuries but are soon to be the standard, as demands for efficiency and convenience from property users continue to rise.

Infrastructure Ready for Tomorrow

Las Vegas’s infrastructure development is not just playing catch-up with its rapid growth but is also preparing for future needs. The planned expansion of public transport networks, including the extension of monorail systems, is aimed at easing connectivity across the city. Additionally, road expansions and transportation grid improvements are underway to accommodate growing traffic, enhancing commutes and accessibility. These developments make the area more attractive for new residents and businesses, setting a robust foundation for long-term growth in the real estate sector.

Addressing the Affordable Housing Challenge

As property development booms, a significant concern is the availability of affordable housing. With property prices on the rise, ensuring that housing remains accessible to all segments of the population is a priority. Developers, in collaboration with government agencies, are tasked with creating solutions that balance market demand with social responsibility. Initiatives like public-private partnerships are being explored to develop affordable housing projects without compromising on quality or sustainability.

The Commercial Real Estate Revolution

The commercial real estate sector in Las Vegas is also undergoing a transformation. The expansion of industries such as tech and healthcare has sparked a need for office spaces that cater to diverse professional requirements. Innovative office layouts that promote open environments and flexible workspaces are becoming the norm. These spaces are designed to boost creativity and productivity, appealing to businesses looking to attract and retain top talent.

Anticipating the Unanticipated

However, with every opportunity comes challenges, and the ability to anticipate and adapt to these challenges determines the success of real estate developments. Issues like economic fluctuations, changes in consumer behavior, or technological disruptions can derail even the most promising projects. Hence, continual market analysis and forward-thinking strategies are pivotal for developers to remain resilient and competitive in a fluctuating landscape.

Each of these sections interconnects to paint a picture of a highly dynamic, forward-thinking, and robust property development scene in Las Vegas. As the city continues to attract more residents and businesses, the landscape of real estate is all set to evolve, reflecting both modern needs and future aspirations. As stakeholders continue to navigate this ever-changing terrain, the pillars of innovation, sustainability, and community focus will guide their journey towards a prosperous and sustainable urban future in the Las Vegas Valley.

Enhancing Quality of Life Through Urban Planning

Urban planning is essential in shaping the future of Las Vegas property development. It involves thoughtful design and strategic placement of buildings, public spaces, and amenities that enhance the quality of life for residents and visitors alike. Future urban planning initiatives in Las Vegas are focusing on creating more walkable neighborhoods, which reduce reliance on personal vehicles, decrease traffic congestion, and promote healthier lifestyles. In addition, plans for more green spaces and recreational areas are being integrated into new developments to provide natural respite in the bustling city environment.

The Role of Data in Real Estate Development

The increasing use of data analytics in property development cannot be overstated. By leveraging big data, developers and investors can make more informed decisions about where to build, what types of properties to develop, and how to market them. For example, data on demographic trends can help predict the future demand for certain types of properties, such as retirement homes or family residences. Furthermore, data regarding the popularity of various amenities can guide developers in designing facilities that will attract and retain tenants or buyers. Incorporating data-driven strategies ensures that new projects align closely with consumer needs and market conditions.

Fostering Economic Diversity Through Real Estate

One of the objectives of Las Vegas’ future property development is to foster economic diversity. This initiative aims to attract and support a range of industries beyond the traditional gaming and hospitality sectors. By diversifying the economic base, Las Vegas can offer more stable employment opportunities and attract a broader demographic.

Property developers are therefore looking at creating versatile commercial spaces that can host various types of businesses, from startups to large corporations. This flexibility not only makes the real estate market more resilient but also supports the growth of emerging sectors like technology and renewable energy.

Need to find a reliable property developer in Las Vegas? RAM Real Estate Asset Management is here for you.

Sustainable Property Investments

Investment trends in Las Vegas real estate are increasingly favoring sustainable and environmentally friendly developments. Investors are recognizing the long-term benefits of buildings that have lower operating costs due to energy-efficient designs and sustainable building practices.

Properties that boast eco-friendly credentials often enjoy higher occupancy rates and increased values, reflecting a growing preference among buyers and renters for sustainable living options. This shift is prompting developers to prioritize sustainability not just as a responsibility to the environment but also as a strategic economic decision.

The Promise of Public-Private Partnerships (PPPs)

Public-private partnerships (PPPs) are becoming instrumental in facilitating large-scale real estate projects that include public interests, such as infrastructure development or affordable housing. Through PPPs, developers can leverage government support to undertake projects that might otherwise be unfeasible due to high costs or regulatory complexities. These partnerships not only accelerate project timelines but also ensure that developments are in line with public policy objectives and community needs.

Addressing Housing Affordability

Despite the booming real estate market, housing affordability remains a significant concern in Las Vegas. To combat this, both government bodies and private developers are exploring innovative solutions such as inclusionary zoning and housing subsidies. These measures aim to ensure that a portion of new developments are reserved for affordable housing, providing options for low to medium-income families. By integrating affordable housing within premium developments, Las Vegas can cultivate more inclusive communities and prevent the displacement of longstanding residents.

Embracing Modern Architectural Trends

Modern architectural trends are shaping the aesthetic and functionality of new buildings in Las Vegas. Architects and designers are embracing minimalist designs, modular constructions, and versatile spaces that can adapt to different needs over time. These contemporary approaches not only cater to current tastes but also anticipate future changes in how spaces are used, making buildings more sustainable in the long run.

Preparing for Tomorrow’s Challenges

The future of property development in Las Vegas is vibrant and filled with opportunities. However, staying ahead of potential challenges like economic shifts, environmental concerns, and technological disruptions requires continuous innovation and adaptability. Developers who remain sensitive to these dynamics and proactive in their planning will be well-positioned to thrive.

This expanded look into the factors influencing Las Vegas’s property development landscape outlines a future that is both promising and demanding. With the right mix of innovation, strategic investment, and community focus, Las Vegas can continue to be a leader in shaping modern urban living environments. As developments proceed, they will undoubtedly reflect a deep understanding of market trends, consumer needs, and broader socio-economic patterns, ensuring the long-term vitality and desirability of Las Vegas real estate.

Steering Towards a Thriving Future in Las Vegas Real Estate

As the landscape of the Las Vegas Valley continues to evolve, so too does the realm of property development. With a keen eye on sustainability, technological integration, and economic diversity, the future of this vibrant area holds boundless potential.

Developers and stakeholders, including experienced firms like RAM Real Estate Asset Management, are at the forefront of transforming these opportunities into realities, crafting a dynamically growing property market that promises not only growth but also stability and community well-being.

The strategic initiatives discussed, from embracing emerging architectural trends to fostering economic diversity and prioritizing sustainable development, are setting the stage for a more inclusive, efficient, and engaging urban environment. In navigating the future challenges and leveraging the vast opportunities, the role of seasoned real estate experts becomes more crucial than ever.

Whether you are an investor looking to capitalize on the booming Las Vegas real estate market, a developer aiming to launch groundbreaking projects, or a potential resident seeking your perfect home, partnering with RAM Real Estate Asset Management provides the insight and support necessary to navigate this exciting landscape.

Take the next step towards securing your future in the Las Vegas Valley. Visit RAM Real Estate Asset Management to discover property investment tips and explore how our expertise can help you maximize your real estate opportunities in this rapidly evolving market. Let’s build the future together, today. Contact our real estate experts for more information.

For most people, the terms “Real Estate” and “Real Property” might seem to be synonymous with one another as they are often used to imply the same thing. However, to someone who has a career in professional property management, or someone looking to invest, it is perhaps a good idea to know the difference between real estate vs real property. In addition to this, types of real estate, types of property, and types of commercial properties are also three different subjects that need to be understood independently of each other.

So, what is the difference between them all? What types of real estate exist, and what types of property exist? And, why are all these different terms and divisions necessary for successful real estate and property management? In this article, we will explain the distinctions between each of them. Let’s get into it.

Real Estate vs Real Property

What does the term “Real Estate” envelop?

Real estate, as many people correctly assume, is any physical property or land which includes buildings, but also the area that lies beneath the land and the air above it. The word “real” in the term literally refers to the fact that an asset is, in fact, tangible i.e., physical.

There are four types of real estate, mostly divided according to the types of usage of that real property.

Types of Real Estate:

• Residential
• Commercial
• Industrial
• Land

Residential real estate refers mostly to homes, as the name implies, both new and resold. They have several sub-categories, of which the most common is a single-family house/home. Others include townhouses, condominiums, duplexes, co-ops, triple-deckers, quadplexes, vacation homes, high-value, and so on.

Commercial real estate refers to shopping centers, malls, educational and medical buildings, offices and hotels, etc. Even though all types of real estate can be used to generate some income, only these are included in the commercial category, with some exceptions. Types of commercial properties also include apartment buildings even though they are residences because they are used to produce income.

Industrial real estate refers to property or buildings used for manufacturing, like factories, but also warehouses. This includes buildings used for production, storage, goods distribution, and research.

Goods distribution buildings can also fall into the commercial category, but that depends on the way the distribution is handled, as well as location and other aspects.

Land real estate simply means what the name implies – land. Vacant lots, farms, ranches, and all other types of land are included. This means reused, underdeveloped, site assembly, and subdivision land.

What is Real Property?

While real property is used less and a usually misunderstood concept, it actually envelops a broader spectrum than the term real estate or any of the types of real estate. This is because it still does include the “real” part, all the land and buildings, and all of the things mentioned before, but it also includes intangible things, such as rights.

This is the main distinction in the “real estate vs real property” dilemma, that bundle of rights. So, in addition to the land and the buildings we talked about in different types of real estate, real property can include things like rights of enjoyment and usage of that land, like improvements, occupation, control, and more.

No matter what types of property we’re talking about, the bundle of rights includes the following:

1. The right of possession, which means the right of occupation of the property
2. The right of control, which includes the right of determining its interests and uses
3. The right of enjoyment, which is the right of using it without any interference by a third party
4. The right of exclusion, which is the right to deny use and interest of that property to others
5. The right for disposing of the property, which means the right to decide if and how it will be sold or given away

Example of Real Property

As it turns out, you can be an owner of different types of real estate while having different real property rights. For instance, a home can have multiple people with the right of possession and enjoyment, but not all can have the right of controlling it or disposing of it.

A good example of real property is when kids inherit the real estate from a parent who is not yet deceased but has given them the right of possession, enjoyment, or control, or all of the above. Let’s say it is a family business for example. The children can use it to make a profit, control many of its aspects (improvements, etc.), but the parents still retain the right to dispose of it and maintain ultimate control.

Real Estate Agents

People who work in the real estate industry are accustomed to the nuances between real estate and real property due to the different branches and aspects of their work. If a person outside of this profession is looking to trade in different types of property, it is recommended they engage a realtor before deciding on the types of real estate investment or trade they will go for.

The type of real estate investment also determines the type of agents you should employ. These include:

• Real estate agents, who arrange real estate transactions
• Sellers’ agents, which assist sellers in finding buyers, determine the price, and other aspects of the sale
• Buyers agents, which help the buyer with the similar, only with the goal of purchasing

Realtors are real estate agents that are members of the National Association of Realtors, which serves the purpose of information exchange about the real estate investment types, sales, purchases, and all other aspects of the industry.

 

Calculating commercial property value is a notoriously tricky thing to get right. Fortunately, there are a few different tricks from the real estate industry that are used to make such calculations more accurate and a little easier to use.

By its very definition, the commercial property value is nothing more than the price paid for the purchase of a given property, agreed upon by the seller and buyer. In economic theory, this value converges precisely at the point where supply and demand collide. In plain words, the value of a certain property is largely determined by the market.

Yet, in the real world, things are not always quite so simple. This is because there are many things that can affect the willingness of the buyer to meet the set price, including but not limited to their motivation to buy that set property, the that takes place, the condition of the property, and a myriad of other factors.

This is why the price agreed upon, and the final price when the sale happens is taken as the final commercial real estate value for a particular property. But, to better calculate this and to have more leverage in negotiating prices, long ago the real estate wizards came up with the tools to help estimate/calculate the property value, such as the Net Operating Income (NOI), and the Capitalization Rate (Cap Rate).

NOI – Net Operating Income

Since we are determining the value of a commercial piece of property, it is a good idea that we take a look at how business was going before, isn’t it? Thus, we take a look at the real black and white picture of the profitability of commercial real estate.

We take all of its income made during a set period and subtract all of the necessary operating expenses. Simply put:

Gross Income – Operating Expenses = NOI

There is another term used here – EBITDA, which literally means Earnings Before Interest, Taxes, Depreciation, and Amortization. All of these aspects are either short or long term figures we need to factor in calculating commercial real estate value.

Cap Rate – Capitalization Rate

People who are looking to purchase a specific commercial property would often want to look at its capitalization rate. This is because it shows, in a single percentage figure, what is the expected rate of return on their investment after purchasing it.

The capitalization rate is calculated again from the net operating income of the commercial property, but this time that figure is divided by the asset value of the property and expressed as a percentage. It is one of the most important figures in real estate management, obviously, and agents often sort entire building areas by their estimated cap rates.

In plain words, the cap rate will show the person who wants to buy the commercial property the rate of return for their invested money, based on NOI and the price. If you don’t know the cap rate for your building, for instance, just look at the cap rate for similar buildings in your area.

The Price

So, once we have all of the figures and formulas required, we can do the calculations with no problem. The capitalization rate formula is as follows:

NOI / Current Market Value = Cap Rate

This means that if the NOI for a given commercial property is $120,000 and it was sold for $1,000,000 bucks in the last six months, we get that the cap rate for that property is 12%.

But, let’s say you own a commercial property, and you want to calculate the price for it, perhaps for potentially selling it. As an owner, you should have access to your NOI (gross operating income). However, since there was no sale of the property in the last six months or even years, what you need to look at then is the cap rate for your area.

Then, you would again have two out of 3 variables known, and the calculation is a simple one.

NOI / Cap Rate(divided by 100) = Price

If we take the same example as before, where NOI was $120,000 and the cap rate for your area is 9%, the calculation would go as follows:

$120,000 / 0.09 = $1,333,333 (approximately)

The three main approaches

When it comes to calculating commercial real estate value, there are three main approaches you can take, these are:

Market value approach

The market value approach takes into account the recent sales data of properties sold in the surrounding area. This is done by assessing the final sales figures of comparable properties which then sets a precedent for fair market value.
These are all handy tools for commercial property management companies as well as those looking to both buy and sell such properties.

Income approach

This approach uses the revenue that the property generates to help estimate fair value. It’s calculated by dividing the net operating income by the capitalization rate, as we have shown above.

Replacement cost approach

Instead of focusing on the property’s ability to generate an income, this approach looks at how much the building would cost if it were torn down and rebuilt again from scratch. This requires calculating the entire cost for the replacement of each part of the property and takes into account the value of the land surrounding the building.

 

What does a property manager do?

We often observe hiring ads for property managers, either online or in the local newspaper, but what is a property manager and what function do they serve?

A property manager is a person or an organization responsible for managing the daily affairs of a real estate or one or more of its units. Such managers are typically hired when, for some reason, property owners or investors cannot manage their own property. Moreover, hiring a property manager is also tax deductible against the property income generated, and this is another benefit of hiring a manager to operate your property. Some examples of properties that might be handled by professional managers include malls, offices, or apartment buildings.

In this article, we look at different property manager duties and property manager responsibilities in more detail. Let’s get into it.

Duties of a property manager

Let’s take a look at five of the main property manager’s duties:

Property maintenance

First and foremost, it is the property manager’s duty to ensure that the property remains in a usable and secure state. This involves regular maintenance so that the building keeps functioning optimally. For instance, a property manager needs to hire experts to examine for leaks or landscapes and eliminate snow or trash. The main objective of such maintenance is to ensure that the current tenants are satisfied, while also making the place attractive to potential tenants.

Besides preventative maintenance, the property manager must also get timely repairs done in case of any problem. Therefore, a competent property manager must have a broad network of trustworthy professionals like carpenters, plumbers, electricians, alongside other contractors.

Employee supervision

A property would often consist of other employees, such as security workers or a concierge. Commercial property management also involves making sure that these employees are performing their duties effectively. The property manager’s responsibility will probably extend to setting their salaries and even sacking them.

Leasing contracts

Another one of a property manager’s jobs involves searching for new tenants and entering into lease contracts.

Before entering into a leasing contract with a potential tenant, the property manager needs to make sure that he has run a thorough screening process, including multiple background checks for a criminal record and credit history. Experienced property managers, having assessed hundreds of tenants, and therefore have developed a keen eye for the right kind of tenants – those who create little to no problems, and are always punctual with rent.

A property manager is also required to handle leases, which would include setting the terms and adding clauses that would secure the owner against any kind of future liability (determining the security deposit amount, for example).

Other than that, other property manager responsibilities include managing any complaints or emergencies (examining for any damages and calculating the portion of the security deposit, which is to be returned, for example), move-outs, and convictions in case of a breach of terms by the tenant.

Rental collection

This is one of the most basic property manager duties, and will almost always be delegated by the owner or real estate investor. The manager would be required to:

Set the right level of rent: The rent should be attractive to potential tenants, while not being too low. In order to determine the right rent level, the property manager will need to compare the property to other similar properties situated in the same region.

Rent collection: A proper system for rent collection should be set up and implemented. To ensure an efficient flow of cash, a date should be set by which all the tenants should have paid their rent. Consequences should be in place to deter delays in payments.

Rent adjustment: In line with the law, the property manager is allowed to increase the rent annually. If the manager feels that the reduction of rent is needed for a particular year, he is also authorized to do that.

Financial reporting

The property manager is supposed to keep meticulous records pertinent to the property. These records include a list of all sources of income and expenses incurred; all inspections performed; leases signed; requests made for maintenance; complaints; repairs undertaken; rent collection records; and cost of insurance.

In conclusion, property manager duties involve very delicate and crucial tasks pertinent to your property. For this reason, your manager should be a reliable, efficient, and responsible person or entity.

If you don’t get it right from the start, property management contracts can end up being one giant headache later down the line. Any property owner who rents out their property will tell you that it can all be plain sailing until things start taking a turn for the worst.

The idea of hiring a commercial property manager is to take all of the groundwork away from the owner and make their life as easy as possible. There is a lot of legwork that must be done when it comes to renting out commercial properties and the more of these that can be offloaded in the property management contracts, the better.

In this article, we will look over the key aspects of property management contracts and some of the key areas of interest for both parties. A management contract’s definition is to precisely detail the responsibilities, fees, limitations, and liabilities of the manager in a wide variety of situations, however, more often than not there are still some gray areas.
With that being said, let’s jump into the specifics.

Outline The Scope of Work

What are the manager’s responsibilities? This needs to be highlighted very clearly in the contract, so much so that there is no room for ambiguity. Here is a list of some of the key responsibilities that are found in most management contracts definition:

• Advertising the property for rent
• Engaging with potential renters/buyers
• Screening potential buyers effectively
• Entering into rental agreements with the renters
• Maintenance and repair of the property
• Hiring personnel
• Handling legal proceedings

Labor Estimates and Fee Structure

It’s important to clearly identify the fees that the property manager will be able to charge during the term of the arrangement. As with any service that we purchase, we must know how much money it will cost us and what service we are getting for that price. This should be very clearly stipulated within the contract.

It’s essential that both parties recognize what services are covered under the management fee and what isn’t. The services that are not covered will typically require an additional fee from the property owner. In fact, there will be situations where the service will not be covered at all, and these scenarios must be covered by the property owner.

In the instance that the property manager must do extra work on the property, then there should be a set way to determine labor estimates for this work.

There will inevitably be expenses that the property manager will incur as a result of the responsibility, such as advertising, maintenance, and potentially legal fees. The manager should provide an invoice for this, and the owner will be liable to reimburse these costs.

Contract Amendments, Duration and Cancellation Procedures

If possible, it is always better for the property owner to refrain from entering into a long term agreement before seeing proven results from the property manager in question. It can be time-consuming and costly to make amendments to the contract once it is in place, so opt for a short term solution before committing to anything of a longer-term.

Typically, most management firms will not be open to signing a contract that is shorter than 12 months. If this is the case, then you must carefully consider the termination clauses to prevent any nasty surprises further down the road.

Make sure you are aware of the fee for early termination, the notice period that must be given, and whether or not there needs to be just cause for the termination.

NOTE: Be sure to stipulate what the property management’s obligations are upon termination. This should be things like handing over documents and the settling of accounts in a timely manner.

Indemnification

Generally speaking, each contract should have in it an indemnity clause that will indemnify the property management for any damages that are beyond their control.

This is an added layer of security for the property management company and means that the property owner must take control under very specific situations, such as; natural disasters, severe defects in the property, and any damage or extra work that is taken on by the property owner themselves.

Property managers in Nevada are usually responsible for the control and operation of a piece of real estate. This can involve responsibilities such as marketing rental properties, dealing with maintenance issues and collecting rent. Property managers can be responsible for real estate that is either commercial or domestic.
It’s important that a property management company acts in the best interests of clients and does not take any actions that are a conflict of interest. With this in mind, Nevada Property Management Laws exist to make sure that property managers perform their duties in the right way. Let’s examine this in more detail.

What is Property Management Law?

In simple terms, Nevada Property Management Laws exist to govern the actions of property management professionals in the state. They consist of a series of statutes and regulations.
Nevada Revised Statutes (NRS) are laws that are implemented by the legislature. It’s only possible to make changes to these laws by taking further legislative action.
The Nevada Administrative Code (NAC) is a series of regulations that detail how laws should be administered.
For example, common-interest ownership is covered by NRS 116 and NAC 116. Real Estate Brokers and Salesmen are covered by NRS 645 and NAC 645. There is a full list of relevant statutes and regulations which can be read online. All property managers are expected to comply with the Nevada Property Management Laws. It’s one of the most important professional obligations that they have.

What are the professional obligations of a property manager?

License

Aside from complying with the law, there are other obligations that a Nevada property manager must fulfill. Arguably the most important of these obligations is to be fully licensed. Property management professionals are not permitted to perform their duties without being licensed to do so.
The licensing process is stringent. It requires an applicant to receive relevant education and to have passed the property management exam within the previous twelve months. Anyone who is applying for a property management license also needs to have a Real Estate Broker’s License in place. This is because the management of the property is regarded as a real estate activity according to Nevada Real Estate Law.

A real estate license allows agents and brokers to legally represent the buyer or seller of a property. There is a process to follow to acquire one of these licenses in Nevada. This process cannot be followed at the same time as the process of applying for a property management license. According to Nevada Real Estate Law, the real estate license has to be in place first.
Even after this is the case, and exams have been passed, there is no guarantee that a property management license will be granted. This is because background checks are completed on applicants, including a check for felony convictions. Certain actions and convictions may mean that an applicant is refused a license and is unable to operate as a property manager.

Fiduciary duty to the clients

Another professional obligation of property managers is a fiduciary duty to the clients, communities, and buildings that they represent. In order to comply with the requirements of this duty, a property manager must always act in the best interests of the people that they represent. This means that a property manager should always avoid any conflict of interest that is detrimental to the client even if it represents a financially advantageous situation for them. This responsibility may be difficult for a property manager at times. However, it’s a responsibility that property managers in Nevada need to take seriously as it has high legal standing.

In summary

Property management laws in Nevada consist of a series of statutes and regulations that are aimed at governing the actions of property managers in the state.
In order to comply with these laws, and fulfill professional obligations, property managers need to be fully licensed. They also need to ensure that they always act in the best interests of the client and avoid any conflicts of interest.
It’s clear to see that property management professionals in Nevada are subject to laws that ensure they act in a professional manner at all times. Any failure to adhere to these high standards could lead to a license being revoked.

Owning a commercial property doesn’t come easy. There are many aspects to think about and focus on, which include the building’s general look. Everyone wants a commercial property that would clearly reflect their client’s needs. The exterior and interior design are also essential in reflecting the company’s vision. These facts show that paying attention to the building’s aesthetic is an integral part of managing a commercial property.

Clients will notice the design first, so it must have the right message and appeal. The exterior sets their expectations on what the business can provide for them. Creative solutions apply to a technical and business environment, making it look better for customers.
Having an appropriate design with the use of artistic elements dolls up the building while retaining its expression. If you need ideas on how to change things up in your property, here are some tips that may guide you in decision-making.

Commercial property management deals with the enhancement of the building and ensuring that the design still complements the architecture. Any embellishments and designs should make the place stand out positively. There are many simple ways to improve commercial properties. They don’t have to be an arduous undertaking.

Create An Entrance That Entices Your Clients

The entryway should stand out and be set apart from the rest of the commercial property. Use color to embellish the entrance, or make use of plants, lighting, and small furniture to increase the overall appeal.

By having an extraordinary entrance, you can entice more people to look at the building and check out what’s inside. Commercial property management is recognizing that the entrance is one of the things that clients will see first, that’s why it must be inviting enough.

Make Use Of The Right Windows

The climate and the building type are essential for deciding factors to address in commercial property management. The window size, type, and orientation come afterward, the same with the shading system.

Choose the windows that will fit the architectural style of the building, so the exterior of the commercial property will look pleasing. The interior aesthetic of the windows is significant, too, so choose windows that also appeal to the interiors.

Bring Colors Together

Choosing the colors that will best work with the property can be difficult. It’s often a choice among basic, saturated, and bold colors. A good tip would be to use two shades of the same color, with the lighter or darker shade for emphasis.

Bringing in a third color will have an effective contrast, improving the look. Decide on color combinations that express the company’s style and attract more customers. Don’t be afraid to mix and match because you might discover a great color combination that suits the building.

Landscape The Exterior

Commercial property management isn’t about maintenance and maximizing profits; it’s about ensuring that the building has a good appearance.

One way to do this is to landscape the exterior. Plants always improve the exterior of a building, but landscaping doesn’t just mean putting plants unsystematically. Research on the best and most beautiful plants that are generally easy to take care of. Note, however, that it takes time to see landscaping’s effect because the plants have to grow, so start as soon as possible. It’s a good idea to consult a Las Vegas landscaping specialist to make sure your ideas fit the warm and dry climate of Nevada.

Use Space In The Best Possible Ways

The exceptional use of space is sure to boost the building’s look. The design and vision of the building should be according to how you will use the property. Commercial property management involves putting importance on the client’s needs. The areas that will be utilized often should be spacious to keep clients from feeling visually suffocated.

Proper use of lighting can also help to make a place look bigger than it is. When decorating, keep balance and symmetry in mind to have a well-proportioned use of space.

Enhance Your Commercial Property

If you need help with art and design ideas on your own commercial property, don’t be afraid to reach out to experts. Commercial property management firms can provide a variety of services that will help your business.
Try something new with numerous art and design ideas. Implement creative solutions that can make a significant impact on your business.

If your business has reached a stage of growth where you need to move into a new commercial property then you probably have a lot of questions on buying vs leasing. The truth is there are good things and bad things about buying a building for your business and leasing a building for a business.

The decision you make will probably end up being informed by the type of business you’re running, how much space you need, how much money you have available to you, and a lot of other factors that will need to be considered. To help arm you with all the information you could need when moving into a property for your business, deciding whether or not to rent or buy!

Benefits Of Buying Commercial Real Estate

A lot of people instantly want to buy commercial real estate rather than work with a property management company on leasing. Buying a building for small businesses certainly feels like a seminal point in your business career. However, it isn’t all about buying, as we’ll explore later. The benefits of buying are clear:

• You will own the building and can resell it in the future, which means it may not cost you anything other than the loans you have had to take out to buy the real estate.
• The real estate might actually increase in value. It is possible that you might make a profit out of the building as you are adding an asset in financial terms.
• Stability is another benefit. You aren’t relying on a landlord or someone who owns the business to tell you that you are able to tay for years!
• Side incomes such as using different parts of the space to rent out to other businesses for storage or other uses can bring in an income, you may have car parking spaces you can rent out.

Buying vs leasing is a move for long term stability and not having to rely on anyone else. This has a nice feel for a lot of businesses, people love the idea of their own property that they can use for years to come. It could be the start of a business empire. However, leasing is an alternative that isn’t to be ignored.

Benefits of Leasing Commercial Real Estate

There are a number of advantages to leasing real estate. A huge number of businesses prefer leasing for a number of reasons. Leasing a building for a business is common practice. The benefits of a lease over a purchase include:

• A lease leaves more capital for other things. You will be paying monthly instead of paying one big lump sum.
• A lot can be dealt with for you by a property management company. The business premises will actually be ready to house your staff or business whereas a property you buy may need to be fully kitted out.
• There’s more out there. You’ll find there to be more choice on the leasing market as opposed to the buying market in the vast majority of cases. There are a lot of companies ready to lease you commercial property, less out there to be purchased outright.
• You have more flexibility to move. You can let the contract on a lease run out and move to another, bigger property as your business grows. Or, if the worst happens and you go out of business, you can get out of a lease more easily than selling a whole property.

Tax Advantages

The tax advantages vary depending on where in the world you are, but leasing can often be a lot simpler. It gives one simple and effective expense to go on your accounts rather than leaving your accountant with assets and more complicated books come the end of the tax year.

Cost Efficiency

Think about the cost-efficiency of buying a building for your business against renting. If owning the building is likely to make you an extra side income, you could potentially find it more cost-efficient. Actually, though, owning the building can cost more.

Liabilities

This is something else that can vary, but you may have to pay business rates, or property maintenance and other legal fees associated with buying. Leasing doesn’t tend to come with these same liabilities. Working with a management company can take a lot of the worries away, and they may even be able to help with things like insurance and the other learning curves that are a big part of running a business in a physical location. You might be liable for the people spending time within that property.

There’s plenty to consider in the rent vs buy debate, it will largely depend on whether you want an asset that is fixed and long term or short term and flexible.

Keeping your commercial property secure is vital. Installing an effective security system for commercial buildings can give you an extra level of safety and protection. You need to protect not just the premises, but also your staff, equipment, and anything else you have on-site.

It could also be the case that you need to keep your commercial property safe and secure in order to protect the data and information of your clients and customers. Thieves and intruders are smart, and they know how to sniff out a property that hasn’t taken the relative steps for security and protection. Don’t make the error of leaving yourself open to an attack in this way.

Cameras everywhere!

There are so many reasons your commercial building security system should include security cameras. They aren’t overly difficult to install and if you are working with commercial property management companies they are likely to recommend security cameras as your first port of call.

Make sure you don’t have any blind spots, especially entrances or potential areas of risk for a security breach. Installing a network of cameras should be thorough, there’s no point if you aren’t going to cover all angles. As well as cameras working as a great way of identifying any thieves or intruders should the worst happen, they also act as a deterrent. If a burglar sees a wide network of security cameras, they will know that they are at risk of being identified. It adds a huge amount of doubt to those who would otherwise jump at the chance to steal from your commercial property or cause damage. This leads on to the other benefit of cameras; identification. Should the worst happen and a security system is breached then it is at least possible that criminals can be found, identified and charged for any criminal damage.

Motion Floodlights

Motion floodlights can have numerous benefits, also. Obviously, they make it much harder for criminals to hide in the shadows. Working with cameras, it increases the chances they will be identified. On top of this, motion floodlights can help your security staff. If you have a member of staff on-site, motion floodlights can act as an alarm and allow staff to know when something is stirring. They can then know which areas to patrol and where threats may be coming from. Motion floodlights alone won’t be able to make your commercial building security solid, but when combined with other tips, they can become a valuable tool.

Passwords and Passcodes

Traditional locks aren’t likely to be good enough for your security system. Criminals know what they are doing, and intruders will be able to pick locks or gain entrance to the building in some other ways. Creating passwords or passcodes, which can be linked to the door, can create an extra layer of security. This can also reduce the chances of security breaches which can occur due to keys getting stolen or copied.

Another huge benefit of passwords and passcodes is the fact they can be reset and changed. In some high-security buildings, passcodes can be changed each day! This means that only the people who need to be able to access a room or building are able to get in. For instance, if you don’t have a huge amount of valuables on-site, you may still have a cash office or a room where valuables are kept. You can add the extra protection of passwords and passcodes in order to make it so much harder for intruders to get in. These passcodes can also mean that your employees or visitors don’t pose as much of a security threat.

Prepare for an Emergency

You need to have a plan for if the worst should happen and someone tries to break in. Security staff needs to know exactly what is going to happen in this scenario. Also, your day-to-day employees also need to know the protocol, who to inform and what to do in an emergency. The safety of human lives should always be given number one priority. Alarm systems can be an important part of your protocol, should an emergency situation arise.

Some alarms and security systems for commercial buildings can even be set up to automatically notify security firms and even emergency services. It is good practice to create a risk assessment and to think in detail about what you are going to do in an emergency. Sharing this with staff is a good way to ensure you have done your duties when managing a commercial property. If you get a secure system in place, there is no reason it should come to this kind of emergency. The element of deterring potential intruders can be just as important as knowing you have a secure building.

More and more people are investing in real estate properties such as buildings and houses, mostly for rental purposes. However, a lot of property owners doesn’t have enough time for property management. Hence, most of them opt to hire a property manager to operate their estates.

If you are one of these real estate owners who want to hire — or already hired — a property manager, you may have some reservations. It may be your first time, or you had a bad experience with your previous property manager; regardless to say, there are necessary questions you need to ask.

Below are 5 questions to ask your property manager.

1. What is the price formation of renting a property?

Your property manager is responsible for setting up the correct price for your properties. Otherwise, you may lose a supposed revenue if the price was mistakenly assessed. Below should serve as a basis for your property manager when setting the right rental price:

● Checking similar properties. This should help ascertain the right price for your properties. Knowing how much your competitor charge tenants puts you at a competitive level. Your property manager should look at comparables, by checking or viewing properties for rent in your area.

● Considering the neighbor’s leased properties. Another way of charging the right rent is, to look at the leased properties in the same location.

● Newly constructed vs. old property. Prospective tenants prefer to rent a newly constructed building than the old one.

● Views, amenities and square footage are also crucial in adjusting and determining rent. Having a good view, amenities and larger square footage makes it more attractive and desirable to prospective tenants.

2. What are the terms of the Agreement? (This includes the length of the term, renewal of the agreement.)

A lease or rental agreement delineates the rules between landlords and tenants and bound themselves by their rental relationship. It is a contract that includes all the important details agreed upon.

However, you may authorize the property manager to sign for you—in a representative capacity—in the agreement. The terms of the agreement should include, but not limited to:

● Name of tenant
● Occupancy Limit
● Term of the tenancy
● Rent
● Deposits and fees
● Repairs and maintenance
● Restrictions on tenant illegal activity

3. Do you have any references?

The property manager’s past accomplishments are indicative of the services delivered to previous clients. A good property manager always has an aggregate amount of good references. Although, it’s still better to meet and talk with the people with whom the property manager have dealt with.

Since online searches for references are sometimes not reliable. You can ask directly past clients, with whom the property manager had worked with, some good questions to ask are:
● Is the property manager responsive to your queries?
● Does he remit payments on time?
● How often does he give you updates on your property, is it more or less than you prefer?
● Do the quoted prices for repairs and maintenance is similar to what you expect to pay in your area?

4. What factors are taken into consideration when screening tenants?

Your property manager should have various techniques in finding and assessing potential tenants. Aside from considering your personal preferences as the property owner, when screening clients, your property manager should:
● Check tenant’s employment
● Credit standing
● Landlord references
● Criminal records

5. Under what conditions can I cancel my management contract?

You should not sign something that you can’t get away from. If at the onset you spot a potential inescapable contract, then consider it a red flag. If you feel that the service they are giving you is not what you expected, then you should have the freedom to change for a better-suited property manager.

However, there are some requirements for canceling your contract:
● There must be a just cause. It’s included in the contract that you signed with your property manager. Nonobservance of said “just cause” would mean a breach of contract.
● Give the required notice. Prior to the termination of the contract, you should give advance notice to the property manager. The period for giving notice is usually stated in the termination clause of the contract. Most contracts will require between 30 and 90 days notice to terminate a contract.
● Notification must be in writing. You should mail by certified mail, return receipt requested. Just to make sure that the property manager receives it.
● Notify the tenants. Inform them in writing about the change in management. Specifically that you terminated your contract with the current property manager.

When a hurricane or a flood threatens your business, you have more to worry about than your personal safety. The safety of your employees, goods, and your very business also becomes paramount. Flood preparedness is something most small business owners don’t take the time to think about, but it is crucial if you want your business to survive the next natural disaster.

 

Disaster plans are also useful in man-made crises. Dealing with a water main break in your business is quite similar to handling a flood. Preparing for one helps you prepare for the other.

If you haven’t considered this important subject, we’d like to share with you seven areas to consider that can help you prepare your business for floods and water damage.

Create a Plan

The first thing you need is to create a plan that will ensure the safety of your employees, your building, your cash-on-hand, and any important documentation for your business (e.g. insurance paperwork). These must all be present in order to keep your business running after a disaster. Additionally, you need a method of communicating with your customers to let them know the state of your business and when you will reopen. This plan must be available to managers at your location and practiced regularly. That way, your business will be prepared when the time comes.

Employees

Helping your employees prepare is very similar to the standard procedures any individual would do in an emergency. Your employees should have the gear necessary at work to hear any evacuation instructions and know the escape routes if they are called to do so. If they are ordered to shelter in place, they will need enough food, water, and other essential gear to ride out the situation. Special plans should be made for any employees that must evacuate due to medical conditions regardless of the situation, e.g. diabetics. Consider giving some employees CPR or first aid training. Employees should also have a way to check in with each other so that you can confirm everyone made it through the disaster.

Building

Depending on the property manager, there may not be much you can do to protect your structure. But if you are able to make improvements, here are some things you can do to protect your building during a flood.

• Ensure that your roof-top structures, signs, and any portable vehicles or trailers are braced and secured.
• Make sure all safety gear works, including fire extinguishers and generators. Flooding can cause electricity to do strange things. Know where the shutoffs for your utilities are. It’s a good idea to shut off any gas lines as soon as you know there is a warning.
• If you do have employees shelter in place, have them check for vulnerable areas so they can either deal with it or document it for a later insurance claim.
• If you are computer-dependent, move as much gear as you can to the top floor. At the very least, move your UPS systems. Server rooms have their own disaster recovery needs. If you have one, consult with an IT disaster specialist to create a plan.
• Move any vulnerable inventory to the highest point in your building. If you don’t have multiple floors, consider having sandbags on hand to block the most vulnerable entrances.
• Have procedures for after the flooding for salvage and repairs. Keep a list of contractors in your emergency planning kit to call once the flood has passed. If you don’t own your building, keep the contact information for the property manager.

Cash

While cash may be the last thing on your mind during a disaster, it’s actually quite important. You’ll need to be to pay flood repair specialists for your building as soon as possible after a disaster. You also need to have enough cash to cover payroll expenses, and potentially pay for food, water, or medical supplies for any employees stuck due to the disaster. Don’t let your employees fend for themselves! If necessary, empower one of the employees that stayed in place to make purchasing decisions on your behalf.

Paperwork

Every business has vital paperwork. Insurance policies, business licenses, articles of incorporation, and other fundamental business documents should be kept in a safe place, but should also be accessible after an emergency. You’ll need that information to start filing claims and hiring contractors. Without that paperwork, there’s no way to prove your status. Also, you should examine your insurance paperwork at least once a year to make sure that it still covers what you need. Remember, not all business insurance automatically covers floods!

Communication

As part of your disaster plan, you need to have a method of communicating with other people with an interest in your business. Your clients, customers, contractors, and suppliers must be kept in the loop about the status of your business. It’s good professionalism and it shows that you are on top of the situation. Give them an honest status about what is going on and what you are doing to get your business back in order. They will appreciate the heads-up.

Practice

Finally, you must practice your flood preparation plan. It does no good to leave it gathering dust in a drawer until the time comes. Your business must be ready. Practice it at least twice a year and review it once a year. This will help you find holes in your preparation. Information that might have been correct a year ago may now be out of date. Keep your plan updated!
If you cover these seven domains, your business will be up and running as soon as possible after a major disaster. Don’t neglect to plan!