Real estate definitions

Top Real Estate Investing Terms and Definitions

Investment costs

A simple real estate investment definition is, “The purchase, ownership, management, rental and/or sale of real estate for profit.”
That all sounds very simple but it’s easy to experience problems as a real estate investor if you do not have a deeper understanding of the industry.

If you are new to the world of real estate investment, you may be able to rely on a Property Management Company to carry out tasks such as acquiring tenants for your property. However, if you want to be really successful, it’s important to improve your knowledge around the basic real estate investment definition. It helps to start by making sure that you understand the top real estate investing terms. Let’s take a closer look at some of them.

Acquisition cost

This is the total price that is paid for an investment property. This is not just the purchase price for the property itself. It’s important to factor in expenses such as mortgage fees and closing costs.

Inspection contingency

This is a term that may be included in a purchase agreement. It means that the purchaser of a property can have an independent inspection carried out on the property before the sale is completed. Depending on what, if anything, is highlighted in the inspector’s report, the buyer can renegotiate the purchase cost or terminate the purchase agreement without losing their deposit.

Turnkey property

This type of property does not require any rehabilitation. It is updated and does not require any work to be completed before tenants move into it.

Rehabilitation

These are the repairs or upgrades that are needed before a property is ready for tenants or to be sold on. Sometimes rehabilitation is minor. On other occasions, walls may need to be knocked down or a new kitchen fitted. It’s important that real estate investors do not carry out a rehabilitation that is not cost-effective. Changes that are made should help to increase the ROI.

Adjustable-rate mortgage

This type of mortgage has a rate that varies depending on market conditions. This type of mortgage can be useful for real estate investors who are likely to benefit from the initial lower rates which may be offered. This may apply to an investor who has purchased a property with a view to selling it on quickly.

Fixed-rate mortgage

Another type of mortgage that investors may be interested in; the fixed-rate mortgage is low risk. The rate remains the same throughout the entire period of the mortgage. This is often something that is appealing to a real estate investor who wants to hold on to a property for several years, as a rental property.

Amortization

This is a type of loan arrangement where the owner of a property pays off a certain amount of the principal and interest each month. This makes it easier to build equity in property more quickly.

Liability insurance

This is a type of insurance that provides protection for a property owner should anyone put in a claim of negligence against them. It also offers protection in cases of personal injury or property damage. Some real estate investors fail to see the importance of liability insurance. However, it’s an essential purchase, even if the intention is to sell a property quickly.

Rental income

Rental income is the income that a real estate investor can make from tenants who are living in their property and paying rent. This income forms an important part of the rental cash flow calculation for a property.

Mixed-use building

A building that is defined as mixed-use is zoned to be used partly for residential purposes and partly for commercial purposes.

Leasing fee

The leasing fee is the money that a property owner pays to a property manager when the manager signs up a new tenant. If a tenant decides to renew their lease once it expires, this results in the owner paying the manager a re-leasing fee.

Looking at the basic real estate investment definition, it does not seem to be complicated. However, real estate can be a lot more complex than you may think. It can also involve large sums of money. It’s easy for a property investor to lose a significant amount of cash if they make mistakes. This includes not having a good understanding of real estate investing terms.

If you want to succeed as a real estate investor, it’s important to take time to fully understand the terms and processes that are involved, before you make your first investment. There is always some risk in investing, but having the knowledge that you need helps to reduce the amount of risk involved. This makes it easier for you to succeed in the competitive world of real estate investment.

Nevada Property Management Law

Property Management Laws in Nevada

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?

Nevada Property Management Laws 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.

signing a contract

Lease vs. Rental Agreement – Which One to Choose?

There is a difference between lease and rent. Both lease agreements and rental agreements are vitally important legal documents. They are to set out terms between a tenant and landlord before entering an agreement, and they should be totally understood before you enter this agreement. Both lease and rental agreements are pretty similar in terms of what they set out, they do have some differences. So what are the differences between a lease and rental agreements? Which one is right for you?

Both lease agreements and rental agreements are vitally important legal documents. They are to set out terms between a tenant and landlord before entering an agreement, and they should be totally understood before you enter this agreement. Both lease and rental agreements are pretty similar in terms of what they set out, they do have some differences. So what are the differences between a lease and rental agreements? Which one is right for you?

Put simply, a lease agreement usually covers 12 months. It can also be longer, but this is down to the individual agreement. You should be aware of the length of time before you enter into an agreement. A commercial property manager will usually outline 12 months as a starting point, but it doesn’t have to be this.

In this article, we’re looking at the Lease vs Rental Agreement pros and cons. What are the advantages of both and which will be suitable for your scenario? Let’s understand the difference between lease and rent.

Lease Agreement

lease agreement One of the key differences between lease and rent is usually the length of time the agreement is entered into. A lease is usually set in stone for 12 months and can only be changed if both parties agree. This means that the rent amount is set and offers some protection for both parties. It means a landlord can’t just change the terms. It also makes it harder for a tenant to just move out when they want to.

A lease is a contract, and of course, it means that you are liable to stick to the terms. Often, at the end of the year, you can extend it, and this is the opportunity to change terms. This usually happens a couple of months before its expiry. Any increases in price or changes of terms can be negotiated before renewal is signed.
These types of agreements are possible for both commercial properties and homes.

Advantages of the Lease Agreement

A lease agreement has the advantage of long-term stability. For the landlord, it means you know your property is going to be filled for the period of the lease and guarantees income. For the tenant, it means that terms can’t be changed on a whim. For instance, your landlord can’t say “next month the rent is going up”.

Rental Agreement

A rental agreement is similar. Differences between Lease and Rent are minimal but the length of time they are agreed over is usually the key difference. The rental agreement is usually month to month. There is a 30-day term and monthly, the tenant can be asked to pay more or to leave the premises. Likewise, the tenant can leave with a lot less noticeable.
Changes that are made monthly must be valid within the limits of the law. There are rent control laws in many locations preventing huge hikes monthly.
A rental agreement is usually written to renew after each 30 day period until one of the parties provides notice otherwise. It is best for shorter-term lets and though it doesn’t provide the same level of security as a lease, there are some key advantages.

Advantages of the Rental Agreement

For a landlord, the advantage is that you can change the terms more quickly if you need to. If demand goes up and rental prices increase in the area, you can increase your prices as soon as the next month. For a tenant, the flexibility of not being tied into a lease for 12 months can also be a benefit. Think of it this way, if you are offered a job and quickly need to relocate, there’s less to consider. If you are tied into a 12-month lease it can be very hard to get out of this. It can come with fines or you may even be forced to pay the rent for the remainder of the lease terms.

Which one to Choose?

The key difference between Lease and Rent is the length of time usually set out in the terms. One is not better than another. They both provide different options for different circumstances, the important thing is that you match up the situation you are in with the right type of agreement for you and your own needs.

If you value stability, you should go for a longer-term lease with fixed terms. This can be good for businesses or if you have kids in a local school, for instance. If you need flexibility, however, it might be best to look for a rental agreement as you are not tied in for as long. You can make decisions month to month on whether you plan to move out of the area. Think carefully about the lease vs rental agreement and which one suits your own situation.

Design Ideas for Commercial Property

Design Tips & Ideas to Spruce Up Commercial Properties

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

Commercial Property DesignThe 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 exterior and interiorCommercial 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.

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.

real estate

Real Estate Trends and Market for 2020

The real estate market is one of the most important markets in the world. It can be tough to predict at times, and like anything, it is being influenced all the time by technological and economic changes. The real estate market in 2020 is likely to prove a different market to that of previous years, as we see some relatively big shifts.
Understanding real estate trends is vital for anyone working in the industry, from real estate investors to commercial property management companies, an understanding of the market is nothing short of essential. So what are some of the things we can expect to see in 2020 and beyond?

Increased Investments

investing in real estate The economy declined somewhat in 2018, but real estate investment rose by nearly 20%. The real estate market is often seen as a very safe investment, and there are a lot of industries that are nowhere near as secure. There is more domestic activity now and this means more investment coming to the property and real estate sector.

Investments can be made into all sorts of real estate, and when you think of property developers you might not consider things like construction and logistics, these areas are a hotbed of investment right now as we continue our growth as a society.

Real estate is always an important area for investors to consider, and brick and mortar is one of the safest options out there. Expect investment to continue to increase as people exercise caution.

Millennials Make Up the Majority of Buyers

A new decade, and finally, millennials have taken over the buying of most properties. Boomers and generation X were previously doing more of the buying, but millennials have caught up. Many economic factors have meant the uptake on spending money on real estate has been slow, and it has been difficult for a lot of millennials to get themselves involved in real estate, but finally from 2020 onwards we expect that they will take over.

It’s estimated that around 40% of property sales will involve millennials making the purchase.

Shift to Second-Tier Cities

The prices in the first-tier cities have become absolutely huge. There are plenty of second-tier cities that are growing, and this is leading to a lot of investment from companies and individuals. As costs drive people away from the bigger cities, expect second-tier to pick up a lot of this new investment.

For instance, real estate prices in LA may not make any sense for certain businesses or for individuals to purchase homes. The movement to a second-tier city can be more economically viable for a business or commercial property, as well as for individuals looking to buy a home for themselves or for investment purposes.

Interestingly, the housing market in New York and LA is seeing very little growth, especially compared to some of these second-tier cities. This is a big sign of the shift we are starting to see, and expect to continue into 2020 and the start of the next decade. Second-tier cities could become some real hotbeds for activity, too.

Use of New Technology

Unless you’ve been living under a rock for recent years, you will know that technology changes everything. It has changed the way we catch a ride, it has changed dating, and it is changing real estate. We think there will be some huge new technologies in 2020 and beyond that can revolutionize the world of real estate for both buyers and sellers

The real estate market has shown itself to be open to new technologies, and new ways of viewing homes. Platforms to see homes and evaluate whether they are worthy purchases are one thing, but there is also likely to be a role in AI when appraising homes, negotiating, and many of the other aspects of this complex market.

There are likely to be more startups cropping up in the world of real estate, to help both buyers and sellers as well as the service industry that surrounds the marketplace. Realtors and investors will likely adopt these technologies early to try and get a market share, and the property market will continue to be huge throughout the next year (and the next decade). People always need places to live!

buying vs leasing

Buy or Rent a Commercial Property – The Pros and Cons

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.

buying property

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.

Commercial Property

How to Find the Right Commercial Property Owner for Your Business?

Opening a business and leasing a commercial property can be a very exciting time. It is also a time when it is vital to make the right decisions. It’s easy to get over-excited and this can lead to you making decisions that aren’t actually the best thing for your business. Looking to find a commercial property owner to work with, whether you’re buying premises from them or leasing, can be tricky.

It’s vital that you consider certain things before you take the plunge. You can get tied into a contract and it could be very frustrating if you find a commercial property owner to buy from and then something better comes up a few weeks later.

Location

Location can be utterly vital to a business. This is especially true if you need to rely on footfall for the business itself. If you are running a business people search online for first like a car dealership or a repair store, this might not be such an issue. If you’re starting a coffee shop, a lot of your business will be people stopping by when they see your store and fancy a coffee.
The more central your location in a town or city, the better for eyeballs seeing you. Remember that it will be more expensive per square meter though, so don’t expect to run an auto dealership in the middle of a city.

Space

Always establish how much space you need before you move into a commercial property. This is a vital part of knowing how to buy commercial property for business, working out a rough floor plan of how you are going to run your business can be very important. It’s a great way to work out the floor space you are going to require.

Costs

You’re likely to already have the model of the budget in mind when looking for a commercial property. However, it isn’t just a case of how much you will be spending upfront. Bills can be more expensive based on the size of a commercial property. There are also costs associated with running a business and maintaining it. For instance, Las Vegas Commercial Property Management can run a building for you in the Las Vegas area.

The costs of running a commercial property can make the difference between profit and loss, so it is definitely worth taking the time to research and plan the costs that may be associated with the business. Estimate bills, and check if there are business rates payable in the area. Once you find a commercial property owner to deal with you might want to ask them about these costs.

ROI (Return on Investment)

Think about whether you can realistically make a profit in the location. It is easy to fall in love, but if you are using a commercial property then you need to be able to make a profit. Whether you are renting out space, or plan to sell it in the future, there needs to be a potential ROI. Like a residential property, if you buy it in a run-down shape and improve the space then there’s a potential to make money on the property itself

Transport

Is the property easy to reach? Is there public transport nearby to stop people from having to make a specific trip to get to the property. A lot of businesses rely on impulse buys or purchasing from shops that are convenient. Think of it this way, if you’re running a convenience store in a train station, it’s likely to do a lot better than if you’re running one out of town.

Also, if people have to make a trip to see your business specifically, transport will be important. Is your business easy to reach? Is the commercial property near other things people might be visiting?

Closing Time

Though things like licensing might come into consideration, it could also be that the closing time is limited. For instance, if you are looking for a commercial property in a mall, you might be limited to the opening times of the mall itself. Similarly, if you’re near somewhere residential there could be restrictions about when you are allowed to open.

A lot of the factors regarding how to buy commercial property for business are based on location. You should be aware of restrictions in the local area, having a good idea of what the area is like, the layout, and local laws can help you to make the right decision.

Security Tips That Work for Commercial Properties

Security Tips That Work for Commercial Properties

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.

Security Tips That Work for Commercial Properties
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.

commercial property security guide

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.

Skills & Qualities Defining a Successful Leasing Agent

Skills & Qualities Defining a Successful Leasing Agent

In this article, we’re explaining more about leasing agents, including the leasing agent skills that are required to make one of these professionals a good choice to work with when you are looking to lease out a property or rent somewhere to live.

What is a leasing agent?

A leasing agent is someone who matches up property owners and tenants. Providing a bridge in the market between landlords and potential tenants of their homes. A leasing agent can work independently or through a property management company or agency. Leasing agents are able to provide a ‘connector’ service and should have the best interests of their customers at heart.

What does a leasing agent do?

Leasing agent skills revolve around connecting people. Their job is to work closely with tenants and property owners and help both through the process of renting a property. The leasing agent should handle the actual legal side of leases and give protection to everyone
involved in their transactions. Leasing agents also play a part in marketing and promoting properties, and they may work with websites and flyering agencies to promote the properties they have available. They can also be the person who shows potential tenants around the home and even set up an event such as an open house for people to come and look at the property.

Skills required for a Leasing Agent

Unfortunately, there are some leasing agents working who aren’t the most caring and considerate to their customers. You should always be on the lookout for the very best, and one way to do that is to fully understand what it takes to do the job well. Leasing agent qualities which can separate the good from the bad leasing agents have been described below.

Has Good Communicational skills

A huge part of the job of a leasing agent is being able to communicate. People working as leasing agents will need to work closely with a variety of different people, and they are usually very good at juggling these contacts. Also, they should be willing and able to answer questions you may have. A leasing agent who doesn’t communicate well could be a red flag.

Healthy Competitive Spirit and Persistence

Like it or not, the industry is a competitive one. Though we recommend a leasing agent who has integrity, they should also be willing to work hard to get the best deals for everyone and to compete for the best scenarios for their clients. Persistence is one of the leasing agency qualities to always look out for.

Values Customers

It’s the same for pretty much any industry really, customers need to be valued. Some of the worse leasing agents are out only for personal gain. The best leasing agents out there know that the best way to make a success of their own career is to work with others in order to get the best deal for everyone. Short term thinking and not valuing customers will only get an agent so far.

Seeks Improvement

Leasing agents should always be looking for ways to improve their service for everyone. As technology is changing, leasing is changing too. Those who don’t move with the times will get left behind. It is best for a leasing agent and for their customers if the agent is always trying to make improvements to the service they offer, to the deals they can provide and to their own skills. As with any profession, being able to move with the times and improve the offering of a business is always very helpful. Compare the property industry now to 20 years ago and you will see why this is such a huge benefit.

Is Proactive

For a leasing agent, being proactive is a great skill. It means being first to the information that’s out there, making a good impression and generally not waiting for others to swoop in before you! Also, as far as keeping good relationships with clients is concerned, actin quickly and getting things done can be a very good way to keep everyone happy. The difference between a leasing agent who makes a courtesy call to check how things are going, rather than one who waits for a problem to arise is always noticed by their customers and helps a leasing agent to build a good reputation and do what is right by their customers.

5 Questions to Ask Your Property Manager

5 Questions to Ask Your Property Manager

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.