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.

Home Improvement Ideas To Boost House Value

Home Improvement Ideas To Boost House Value

Whether you’re thinking of selling your property in the near future, starting a remodel to make your dwelling nicer and more comfortable, or just want to create a more appealing house view – there are plenty of budget-friendly ways to boost your home value.

Prioritize repair work

Before you start sprucing up your property, you should first determine structural problems and have them repaired immediately. If you wait too long to have them fixed, minor defects can turn into costly home improvement nightmares. Experts recommend getting home inspection service at least once a year. No matter how strong your home build is, over time, it becomes prone to wear and tear, especially the exterior parts, such as your roofing system, walls and foundation. Watch out for missing or broken roof tiles, structural cracks on the wall, broken insulation, water leaks, or a collapsed floor/slab.

Repaint your walls

Simply changing your wall paint can already augment the value of your home. Why not? It makes your property look newer and more appealing. Repaint your interior walls with fresh, neutral color so as to make any room look fresh and clean. You can be bold with your front door paint and choose vibrant hues like red, green or blue. Check if your kitchen cabinets need some repainting too.

Make your home energy-efficient

A great way to dramatically increase the value of any home or property is to make it energy-efficient. And no, you don’t need to break the bank just to do this. There are simple ways to make your home energy-efficient, such as sealing all windows, replacing incandescent bulbs with LED lights, adding insulation to your attic, installing solar panels, installing a storm door, and buying energy-star products and appliances. Consider tuning up your HVAC system as well and performing an energy audit.

Update your electrical system

Not only does it increase the value of your home, updating your electrical system will also ensure the safety of your family against potential hazards. Consult a certified electrician to know whether it is time to rewire your home, upgrade electrical panels, replace switches, or install additional sockets. If you’re rewiring, take the opportunity to update your home lighting and add other fixtures that you’ve been planning to have all this time.

Spruce up your landscape

The way your home looks from the outside does affect its overall value too. Removing weed, clearing out any dead plant, mowing your lawn, and feeding your grass all contribute to an overall garden transformation. Installing flower beds is also a great way to jazz up your home. Consider adding outdoor furniture and fixtures too, such as patio chairs and table, a fire pit, a deck, or a playhouse if you have kids.   

Home lighting is the key

Many homeowners overlook one simple, inexpensive approach to increasing the value of their property – lighting. Proper lighting adds elegance, coziness and personality to a room. For example, chandeliers add a touch of sophistication. They need not be restricted to living rooms or dining areas. Chandeliers also do well in master bedrooms and baths. Consider replacing overhead lights with wall-mounted lights to add warmth and value to your bathroom. In the kitchen, a central overhead is not enough. You also want to add task lighting (for specific tasks) and accent lighting. Invest on energy-saving, high-quality bulbs to maximize lighting efficiency. Lastly, bring in more natural light into your home. It makes every room appear open and airy, which is one of the factors home buyers consider these days.

Watch out for mold and mildew

The presence of mold and mildew can greatly reduce your home value. If not addressed at the earliest time possible, mold can invade every area of your property. It can cause rotting of wood surfaces like floors and furniture, fabrics, furnishings, rugs and carpets. It also causes an ugly mess in your concrete walls. If your home smells musty, that’s a sign of high moisture levels. Consider mold and mildew remediation services if you suspect mold growth in your home. If it’s just a minor infestation, you can do the cleaning on your own. Make use of air movers to easily dry surfaces and drive out moisture from your home. Also, repair sources of water leaks. Mold thrives in wet and humid environments.

Give your bath a facelift

You can give your bath a facelift without flushing lots of money into the toilet. First off, give it a good clean. Check for spots or areas that need to be repaired. Consider updating the tiles, adding some fixtures like a vanity, or a cute countertop. And again, don’t forget the light!

And your kitchen too!

The kitchen is a focal point at any house so it’s okay to invest some more on it. You want to make your kitchen functional, airy, clean, and highly organized. Try adding multi-purpose furniture and fixtures. Your kitchen will benefit from some decoration too.

Consider a home addition

Do you have a room or space that you have not been using for a while? Why not convert it into something useful and beautiful, like a study room, another bedroom, a playroom or an entertainment area? Whatever appeals to you. Improving or adding an existing accommodation is a surefire way to boost the value of your home.

 

Property Management Company

7 Point Flood Preparedness Guide for Businesses

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.

 

Property Management CompanyDisaster 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!

Real Estate Asset Management

The Ins and Outs of Real Estate Asset Management: What You Need to Know

Many of us are familiar with real estate property management i.e. the management of the daily activities of a property’s operation. But, when the conversation turns to real estate asset management, things can get a little murky.

Although there are many facets to this industry, to put it simply – the goal of  real estate asset management is to maximize property value so that it can be sold, rented, and/or leased for a profit. Interested in learning more about the ins and outs of this complex, but intriguing, industry? Keep reading for a concise, but comprehensive, breakdown:

 

Investing in Real Estate

Corporations, private companies, individuals, and even governments buy real estate for investment purposes, usually for one of two reasons:

  • To renovate and resell
  • To renovate and lease or rent

 

Sounds fairly simple right? But, this is where things become a little more complex. You see, there are challenges in this industry that aren’t in the capital markets. For instance, unlike most other commodities, property can get damaged, it deteriorates over time, and the buying and selling process can get quite involved.

In order to circumvent these issues, the asset management of investment properties promotes improvements that will increase the property’s value and minimize risks. But, that’s not all – real estate asset management also concerns itself with effectively navigating the sometimes hard to understand tax and legal rules that govern the investment property industry in the US – thus effectively helping real estate investors avoid many of the potential pitfalls that can befall them.

investments
Real Estate Asset Management Goals and Objectives

Just like other types of investments, diversification is key when it comes to building a strong real estate investment portfolio. To this end, a large portion of an asset manager’s responsibilities tends to revolve around three main things:

  • Revenue forecasting
  • Data analysis
  • Market research

Furthermore, they help their clients create well-structured and attractive rental agreements and leases that will:

  • Limit liability exposure
  • Minimize vacancy rates
  • Provide their tenants with much of the flexibility they desire

This responsibility may seem strange when considering the other aspects of this industry, but  you must remember that resources have to be strategically apportioned and managed. The failure to do so will impact the portfolio’s value negatively..

portfolio

The Bottom Line  

In short, the goal of real estate asset management is to help clients increase property value and, as a consequence, their returns. Good managers, like the ones at RAM Real Estate Management in Southern Nevada know how to reduce expenditures whenever possible. In this way, we are able to help our clients find the highest and most consistent revenue sources while simultaneously mitigating risk, liability, and other factors.

Property Management Company

Landlord vs Property Management Company: Which Will You Decide?

When you become a rental property owner, one of the first things you have to decide is whether you want to take on the responsibilities of a landlord or hire a property management firm to do the hard work for you.

To gain a better understanding of these two choices, our comprehensive guide details the pros and cons of each:

 

Landlord

A landlord is essentially a property’s gatekeeper, with responsibilities to both the rental business and the tenants. Some of them include:

  • Finding new tenants
  • Marketing/Advertising
  • Collecting rent
  • Setting rental rates
  • Repair and maintenance

Although, the aforementioned tasks can be challenging, being a landlord has its advantages:

  • Income: You get a monthly check to pay the property’s mortgage and – dependent on current rental rates – make a sizable profit as well.  
  • Tax deductions: You can deduct the costs of replacing water pipes, replacing damaged furniture, professional services, and more.

landlord vs property manager

Cons include:

  • Vacancies: If your property is vacant, it can’t generate an income, making it essentially worthless. It’s up to you to create and implement advertising and marketing campaigns to attract applicants, screen them, and much, much more.  
  • Legal issues: You must remain current on the Nevada’s land and property legislations and laws to know where you stand when it comes to evictions and other legal issues.

property managment

Property Management Firm

Every savvy entrepreneur knows that it’s better to work smarter, not harder. And sometimes it’s just good business to have a professional do something that you don’t want to do. For instance, some of the responsibilities that you can expect your property management company to take over include:  

  • Finding new tenants
  • Advertising/marketing
  • Delegating repair and maintenance duties
  • Collecting rent
  • Setting rental rates

 

Some of the benefits that come with going this route include:  

  • Higher-quality tenants: They use rigorous screening processes to cull the reliable tenants from the bad.
  • Shorter vacancy cycle: Experienced companies, like RAM Real Estate Asset Management, have effective strategies to attract new tenants as well as a time test tenant retention policy to keep existing ones happy.
  • Fewer legal issues: The property managers at RAM are always up-to-date on the latest laws in the real estate industry. This knowledge ensures that your property – and how it’s ran – is legally compliant, shielding you from frivolous lawsuits.
  • Less responsibility: You won’t have to handle as many tasks as before, giving you more time and freedom to invest in other things.  

There aren’t many disadvantages to hiring a property management company, but one of the biggest is cost – you will either be charged a flat annual fee or anywhere from 8 to 10% of the monthly rent.

At the end of the day, the decision to become a landlord or hire a property management company is up to you. No matter what you decide, you must take the necessary steps and adopt effective strategies that bring about your long term success.

Real Estate Asset Manager

Responsibilities of A Real Estate Asset Manager and How It Can Help You

Most of us are familiar with the role that property managers play i.e.  they manage the financial aspects of owning a property:

  • Collecting rent
  • Taking care of taxes
  • Ensuring insurance, payroll, and maintenance bills

Real estate asset management, on the other hand, is a little different.  In short, asset managers maximize the performance and value of a company’s real estate investment portfolio, whether it consists of offices, retail, and/or multi-family units.  

 

How Does This Benefit Me?

Real estate returns have a lower risk than other asset classes like stocks and bonds i.e. when managed properly, they can net you higher returns. Asset managers not only help you maintain the day-to-day duties of your portfolio they also increase your ability to influence performance.

An effective asset manager – like the ones at RAM Real Estate Asset Management – will have a more hands-on approach when it comes to helping you increase your property’s value. They will help you work out even the tiniest details i.e. replacing leaky roofs, improving the exterior, or populating buildings with higher quality tenants.

effective asset manager

What’s the Catch?

Like with many other things in life, real estate investments come with some risk. For instance, transaction costs are significant when compared to other investment classes. In this way, it is more efficient to purchase larger real estate assets, as this spreads the cost over a larger base.

Following this tactic requires ongoing maintenance on two levels:

  • Property Management: To deal with the day-to-day operations
  • Strategic Management: To help you find long-term investment positions

Handling this type of investment on your own can be tough and time-consuming. So, if you want to build a strong portfolio that will provide you with a decent ROI, consider employing the services of the experts at RAM Real Estate Asset Management – not only will they give you everything you need to stay on top of market trends, they will also help you measure risk to increase your chances of acquiring an investment property that turns a profit.

 

The Bottom Line

When it comes to real estate investing, having an intelligent, savvy, and experienced professional on your team that helps you effectively manage your property is a valuable asset. At RAM Real Estate Asset Management, we have over 125 combined years in the real estate  business and we pride ourselves on professionalism, helping our clients find high-quality properties and – most of all – making sure that their investments generate money. Contact us today to learn how we can help boost your portfolio with lucrative real estate investments.