Property management report

What Is Included in a Property Management Report?

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property management reportingAs your real estate portfolio grows, it becomes increasingly more difficult to manage, especially if you have multiple properties spread across different locations. Before long, a collection of small and simple tasks can snowball into a mountain of work and stress that severely hinders the owner’s productivity. To avoid these hassles, property owners often hand over these responsibilities to a reputable property management company which frees up a substantial amount of their time.

A good property management firm will take away almost all of the day-to-day responsibilities that being a landlord entails, completely removing the property owner’s workload. However, the owner must be still kept in the loop with how the property is performing, informed of any major issues that arise, and frequently updated on their investment’s financial performance. After all, their real estate investment could make up a substantial part of their investment portfolio, so they will certainly want to know how it is performing.

This article will take a look at what areas are typically covered in a property management report and what property owners can expect to find inside them. Let’s get into it.

What Is Included in a Property Management Report?

Property management reports are intended to communicate what is going on with the property so the owner can get a detailed understanding of the property without being entrenched in the day to day affairs of the landlord duties. Let’s take a look at some of the main areas that go into property management reporting and what we can expect to find in there:

Income and Expense Statement

What is the number one thing a property owner wants to know about their investment? Yep, how much money it’s making. The income and expense statement is an important part of property management reporting as it shows the flow of income and categorizes the outgoings/expenses neatly. This statement details:

  • All sources of income for the property and their categories
  • All expenses for the property and their categories
  • The overall total (income – expenses)

Owner Statements

property manager reportThe owner’s statements are an important part of property management reporting. A good commercial property manager will prepare a detailed one each month so that the owner can get a frequent snapshot of their investment and how it is performing. It acts similar to an accounting statement, with a detailed inventory of all comings and goings, including all maintenance fees, management fees, utilities paid by the tenant, and how much money is left in reserve.

The property reserve is usually an amount of cash that the owner provides the property management company to conduct repairs and maintenance. This prevents them from having to ask for permission every time funds are required.

Operating Statement

The operating statement is vital if you want to have a thorough understanding of how your property is performing as an investment. This statement provides a clear view of the entire investment portfolio’s financial health that the property management company is responsible for.

This gives a birds-eye view of the property portfolio and often highlights areas of weakness where they could be room to improve the properties’ cash flow.

Account Ledger Report

Sometimes referred to as a general ledger report, this takes a collection of the previous reports and breaks them down into minute detail. Every single transaction should be documented and accounted for, including the date, time, purpose, and an individual transaction ID.

This allows the owner to go through their accounts with a fine-tooth comb if necessary.

Additional Owner Reports

Many other smaller reports may be included in the overall property management report provided to the owner. This all depends on individual circumstances such as the portfolio size, property types, number of tenants, and the property location. An example of such reports includes maintenance conducted, vacant property, tenant changes, and so on.

Creating Accurate Reports

It goes without saying, but property management companies must create accurate reports so that the owners can make informed and up to date decisions on their investment portfolio. With larger portfolios, especially, there are many moving parts, and there are sometimes substantial amounts of money at play.

Property management companies need to have their data-entry accuracy on point before compiling the report and delivering it to the property owner.

property manager duties

5 Common Property Manager Duties

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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

what is a property managerFirst 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

property manager responsibilitiesAnother 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.

property management trends

Property Management Industry Statistics

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A residential or commercial property management company’s job is to handle all of the tasks and communications relating to tenants, prospects, and proper maintenance of the property. This saves the owner from spending their valuable time on such duties as the burden of the responsibilities is left in the hands of the property manager.

Let’s take a look at the most recent industry statistics as well as some of the challenges that face property management firms moving forward.

Most Common Property Management Services

So what do most property managers actually do when it comes to looking after the properties? Here are some of the most common tasks involved:

  • Collecting rent
  • Maintenance/repairs
  • Finding new tenants
  • Cleaning
  • Evicting
  • Leasing

property management statisticsOf course, these are a few of the many tasks that property managers often undertake as part of their contract with a property owner. Almost all of the property management companies offer services that collect rent and run routine and emergency maintenance on the properties.

These are two of the most time-consuming jobs when it comes to renting out a property and can often be some of the most difficult If a tenant refuses to pay for one reason or another, then the process to finally secure these funds can be a complex and time consuming one.

The same can be said for conducting maintenance and carrying out emergency repairs. If the water heater blows in the middle of the night, somebody needs to be on hand to delegate the repairs to an engineer. If the tenant loses their keys, then someone needs to be on hand to supply a spare. This is where the property management firm comes in.

The Current State of the Property Management Industry

Here are the key property management industry statistics:

  • Average industry growth 2015–2020: 2.5%
  • Market size – $88bn
  • Industry Employment: 847,610
  • Total property management service providers: 800,000+

Economic prosperity is generally bad for the rental market as more people look to move away from renting by purchasing their own homes due to easier access to financing and lower unemployment rates.

However, the property rental market looks to be increasing year on year in the current climate. As times of economic hardship arise, the number of people renting typically increases.When you couple this with the general attitude of Millennials towards homeownership, it’s clear to see why the property management industry is thriving.

Technology and Property Management Trends

business and technologyTechnology is changing the landscape of almost every single industry in the world, and property management is no different. Over the past few years, the industry has seen significant increases in efficiency thanks to a whole host of applications and software that make the lives of the property managers much easier.

Things like paying bills, accounting, collecting rent, and tracking different types of data is now far easier and much more accessible than it was in the recent past.

One of the property management trends over the past few years has been the rise of virtual reality. It’s now perfectly possible to conduct a viewing while the potential tenant is on the other side of the world. In addition to this, AI is also on the rise in the industry, with smart computing technology now helping with all sorts of property management tasks, such as measuring water heater levels, safety alerts, gas and electricity meter reading, and smart security locks.

Managers can now receive notifications directly to their cell phones or computers informing them of when certain tasks need to be done, rather than having to proactively check these levels manually. This frees up a significant portion of their time for other tasks.

Challenges in Property Management

Finally, let’s take a look at what challenges face the property management market over the next few years:

Keeping up with the technology

As we mention, technology is rapidly changing, and companies must adapt to survive. If other companies adapt quickly and adopt new technology that improves their efficiency, then the companies that don’t will be left behind/

Millennials demand

With the rise in technology, millennials demand that companies abide by certain standards for things like websites, applications, and so on. If a company doesn’t hold its own on the online marketplace, then it can seem untrustworthy and out of date.

Keeping up to date with current marketing

Marketing has seen rapid advances over the last decade or so. Things like social media, push notifications, and content marketing have exploded recently. Property management companies must have savvy marketing teams to keep up to date.

Rent control

Lastly, with the rental rates increasing exponentially, it seems that government intervention could be afoot to help make renting more affordable. When this happens, property management companies need to be able to adapt quickly to cope with the changes.

Thanks for reading

business agreement

Understanding Property Management Contracts

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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

business discussionIt’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

signing a contract 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.

Real estate definitions

Top Real Estate Investing Terms and Definitions

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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

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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?

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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

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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. 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.

real estate

Real Estate Trends and Market for 2020

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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

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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.