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Functions of a Professional Property Management Company

Functions of a Professional Property Management Company

A property owner should hire a professional property management company to maximize ROI and avoid getting into legal trouble. The property manager will act as an agent of the owner, discharge the duties honestly, and will have full understanding of the expectations and goals of the owner. Here are some important functions that a property management company performs.

Occupancy Maximization

The occupancy level of a property directly relates to income generation, and when there are vacancies, it implies financial losses for the owner. Hence, the primary goal of a property management company would be to maximize the occupancy rate on the property. The strategies used to improve occupancy will vary between properties, as the cost of procuring new tenants has to be carefully calculated against the potential income of the property. It is usually a two-pronged approach, where the manager will try to retain existing tenants and find new ones. The property manager will evaluate rents prevailing in the current market conditions and work out the cost of various advertising strategies, including newspaper advertising, online ad campaigns, and posting banner ads in the area.

Legal Compliance

There are many rules, regulations and laws pertaining to operating and managing properties, and non-compliance of these laws can lead to serious legal complications, expensive litigations, and fines. Secondly, the property manager will have to deal with lease negotiations, eviction notices, landlord-tenant agreements, and other legal matters concerning the property and its maintenance.

Maintenance

Protecting and maintaining a property is a major task that takes a lot of time and effort. A property that is carefully maintained keeps tenants happy, and preserves the appeal of the property. The manager will have to implement a maintenance strategy, which is not only cost effective, but will also keep all aspects of the property in outstanding and in full functioning order. The amount of preventive maintenance, cosmetic repairs, and corrective emergency repairs possible will ultimately depend on available cash flow, ROI, and the need for maintaining the reputation of the property.

Communicating with the Owner

 

Property owners want their managers to keep them updated on all matters regarding their property. However, the detail and frequency of these communications will vary depending on the requirements of each owner. A dependable and experienced property management company will have an effective system in place that will report important matters concerning the property at regular intervals to the owner. Some companies maintain efficient online portals accessible to the owners where all the current information regarding the property is available.
 

Financial Reporting

This is another key function of a property manager, as all owners want to know where they stand monetarily with regard to the properties they own. Financial reports will have to be prepared according to specific accounting requirements of the owner. The manager will also have to prepare certain accounting statements that are legally required to be submitted to the authorities. The types of financial reports will also vary depending on the supervisory requirements, and ownership structure. Most property management firms now use sophisticated software to maintain an efficient and poignant financial reporting system.

Concise Guide to Commercial Property Management

Concise Guide to Commercial Property Management

Commercial property management can be quite different from managing residential properties. Commercial property can be buildings that are rented out for industrial or business purposes, and can include offices, warehouses, restaurants, retail stores, and so on. Managing such properties has its challenges, but an effective strategy will help to appreciate the property value and keep tenants happy.

Details and More Details

The main difference in managing commercial property as compared to residential properties is the legality involved in the lease agreements. Commercial leasing has different set of rules and regulations, and they can vary between states. It is also important to understand the responsibilities regarding taxation, and insurance premiums. Sometimes these responsibilities can be shared with the tenants, or can be totally borne by the parties leasing the units.

Maintenance Burdens

Maintenance costs of commercial property will also be quite high depending on the activities carried out by the tenants. If there is a manufacturing unit or restaurants, there will be question of waste disposal, maintaining cleanliness of the area, providing adequate lighting and so on. The question of sharing maintenance costs or including a fixed amount in the rentals will depend on the type of activity and the situation.

Maintenance is a major element in commercial property management and all aspects have to be considered apart from the cost. Everything from electrical units, to HVAC, to lift systems has to operate effectively without a hitch. If things do not function properly then the commercial tenants can lose a great deal in their business, and this can lead to costly lawsuits, where the property owner can be required to pay the damages.  

A Well-Oiled Machine

Hence, figuring out the best allocation of expenses and responsibilities in the lease agreement is quite important to maintain a worthwhile ROI. In addition, the lease agreement should also be without any loopholes, to avoid any misunderstanding and legal suits with the tenants. Ultimately, all expenses will have to be considered in terms of available budget and maintaining a consistent and decent cash flow. An effective operating budget has to be in place to avoid any cash crunches, and there should be adequate cushioning to accommodate unforeseen expenses in maintenance.

Apart from that, commercial property management also involves leading and overseeing a team of housekeeping personnel, maintenance professionals, accountants, and clerks. The common areas have to be kept clean and well maintained. This can be accomplished by employing competent housekeeping personnel, and training them for particular tasks. Overseeing the maintenance team will usually take priority, as many things will have to be serviced on the property to keep them running efficiently.

No Day is an Off Day

Any laxity on the part of maintenance will spell disaster in a commercial establishment. Ongoing checks and servicing of important systems in the building like lifts, HVAC, and electrical grids have to be done on a daily basis. Overseeing a team of maintenance professionals can be quite challenging. However, the task can be made easy by adopting a proper reporting system, and allocating specific responsibilities to the team members.

Commercial property management involves many aspects that are best left in the capable hands of competent experts in the field.

The Importance of Preventive Maintenance in Property Management

The Importance of Preventive Maintenance in Property Management

Sudden expensive repairs can become a nightmare in property management, and they take a sizeable sum out of profits. Usually the owner comes to know of the problem when it has become huge and needs immediate fixing. The only solution in such situations is adopting a proactive approach and undertaking preventive maintenance but in some cases it may be too late for this. But this should be the outlook and business practice.

When certain issues are addressed when they are just starting then the cost of fixing them is minimal, and the issue will not escalate into a major problem needing costly repairs. Preventive maintenance will not only reduce costs, but also improve relationships with tenants. Here are certain crucial aspects in a property that need regular monitoring and maintenance.

Bathroom Maintenance

Bathrooms should be regularly monitored on a monthly basis and checked for water leaks and mold formation. Check the sink, toilets, and bathtub areas to see if the caulking is in place. Seepages and leaks can cause costly water damage, which can be prevented by fixing minor leaks. Mold spreads very quickly in moist and warm areas, and if it is left untreated, it can lead to severe structural damage involving costly repairs.

Maintaining Rooftops

Surveying rooftops regularly is an important aspect of preventive maintenance, especially after rains or a spell of severe weather. Roofs should be checked for missing shingles, mold formation, and any damage that is being caused by water. When there are no rooms directly below the roof, the problem can go unnoticed for a long time, and the damage can escalate to something huge. Also, check gutters for any blockages, and maintain them for the water to run off smoothly. Regular monitoring of the roof area can save major repair costs and costly maintenance.  

Monitoring Electrical Components
 
Faulty wiring and defective appliances can cause short circuits, which pose major fire hazards. Before tenants move into the property, perform a full inspection of the wiring and check for any issues in all electrical appliances. Inspections should be conducted by certified electricians to ensure all electrical components are compliant with building regulations. If any incident involving electricity is reported by tenants, the problem should be attended immediately and fixed.

Pest Extermination

If the property is in an area that is prone to certain pest infestations, then it is better to monitor the premises for such bugs and pests. If a problem is detected or reported by any tenant, then the whole property has to be fumigated by a professional extermination service. Termite infestation can occur at any time in any area, and therefore it is necessary to be vigilant and keep a look out for the signs of such infestation. Termite infestation is the most dangerous, since these critters will or can damage the structural integrity of the property. Therefore, repairs can be very costly and certainly impact any rental company’s bottom line.

A Property Management Company that is Dedicated & Competent

Property management can be time consuming and involves a lot of effort, especially preventive maintenance. It is therefore best to leave this important aspect of property management in the capable hands of Talley Properties in Charlotte, NC. They have been around for more than thirty years and have an impressive record of accomplishment in managing properties.

4 Common Issues in Property Management and Their Solutions

4 Common Issues in Property Management and Their Solutions

Profitably managing an owned property is quite a daunting task. Many owners incur losses, when they are unable to tackle certain situations. Here are five problems that are quite common, while managing properties, and their possible solutions.  

1) Maintenance Issues

Buildings and individual houses need ongoing maintenance in structural aspects, plumbing, and electrical systems. Anything can pop up at any time, and repairs have to be attended to immediately to avoid inconveniences to tenants. The best solutions for managing maintenance issues is to have a preventive maintenance program in place, and have a professional staff attending to the repairs.

2) Handling Tenants and their Complaints

Complains from tenants can keep pouring in on a daily basis. These complaints range from small issues with other tenants, to major complaints to do with the state of the property. However, most complaints are to do with repairs or correcting something on the property. It could be about the illumination in the common areas and requests for brighter lights, or it could be about the potholes in the driveway. Every complaint needs to be looked into and cannot be ignored, especially ones that show potential problems in structural aspects of the building. Tenants should also feel that their complaints are being heard and appropriate action is being taken.

3) Payment Issues

Not receiving rent on time is a major issue faced by all property owners. Most tenants have a range of excuses at hand for not making payments. Missed payments, late payments, check payments are all cause of concern and can eat away at the profits. Solution to this problem requires a multiple pronged approach. Firstly, there should be a person in charge who will go around collecting payments on the due dates, which will make tenants aware that they have to keep their payments ready on time. The second aspect is to levy some penalty or late fees, which is a percentage of the total amount owed. This usually works when the property owner is able to enforce it strictly and with precision and reason.

4) Profitability

Profitability is affected by several factors and the overall management of the property. One of the reasons could be due to many units laying vacant on the property. This issue can be handled with the right marketing technique for attracting tenants to the property. Proper advertising and good reputation about the property can make a major difference in getting the right tenants. Sometimes, even when all the units are occupied, the business might still run into losses and this could be for a number of reasons.

This could be due to charging low prices to tenants or improper overall management. For assigning the proper rental price, it is necessary to have the property assessed to know the actual worth of the lodgings, and analyzing what people would be willing to pay. It also helps to do some research on what people are already paying at similar properties in the area. However, in most cases, losses occur due to improper overall management, and the best solution is to hire a professional property management company that is offering comprehensive services for handling all aspects of the property.

Tips to Profit by Leasing Your House in North Carolina

Tips to Profit by Leasing Your House in North Carolina

Leasing a piece of property is more than just planting a big orange signboard on the front yard or posting an ad on Craigslist and taking in the first person who answers it as your tenant. In fact, the signboard or the Craigslist post will hardly bring you tenants and you cannot hope to make a profit by leasing your property if you are not choosy about your tenant! Making a profit by leasing your house in North Carolina will elicit some bit of hard work from you; after all, there is nothing as a free lunch. The following are some tips to help your task:

Make your rental property habitable and safe for your tenant. Before you put up your house for rent, make sure that it is habitable and safe for a prospective tenant. This is not only your responsibility as a landlord but a desirable housing unit will also attract more prospective tenants.

What is more, the structural updates that you may make to your apartment for rent or vacation rental property will allow you to quote and receive a higher amount of rent. For instance, apartments or homes for rent with new hardwood floors, an upgraded plumbing system, and/or energy-efficient heating and cooling systems can rightfully command higher rents than dwelling units with cracked floors and/or old and rundown utility systems.

Decide on the amount of rent to charge. But only after you have carried out a thorough research. You have to keep the following considerations in mind when deciding on the rental amount—it should be at par with similar dwelling units in the area and should be neither too high nor too low in order to attract tenants. Pore over local newspapers and browse online advertisements to figure out the average amount of rent for rental properties in the area that are similar to yours. If possible, visit some houses and apartments for rent to compare them to yours. Decide on a rental amount and make sure that is not so high that it will keep away tenants nor so low that it will make prospective tenants wonder if something is wrong with the property.

Make sure that the rent amount covers the cost of maintaining your property. After you have figured out the rental amount, do some more number crunching to ensure that it will comfortably cover all the expenses on the property and still let you pocket up to six percent of the value as profit. The rent amount should ideally cover any mortgage payment, costs of maintenance and repairs, and vacancy costs.

Market your rental property. All the hard work that you may have put in after following the above-mentioned tips will come to a naught if you cannot reach out to a focused group of target audience and market your property. Thankfully, this is one task that you need not be bothered with. List your home for rent on the website of Talley Properties, Inc. Their website contains a comprehensive list of homes and apartments for rent and is browsed by countless prospective tenants every day. You can rest assure that your vacation rental or condo rental or apartment on rent will be lapped up in no time at all.

Choose a tenant only after screening. Finally, make sure that you delve into the credit history and do a criminal records check before you take in a tenant. Do not rely on the data brokers on the Internet to provide you with the details. Instead, prepare an application form where a prospective tenant will be required to provide information regarding his identity, criminal background, and credit history. If you intend to carryout a credit check, make sure that you have the tenant’s signed permission.

Vital Rental Tips

Whether you have a home for rent in Mint Hill, a condo rental property in Kings Mountain, or an apartment on rent in Kannapolis, the above-mentioned tips will ensure that you can reap the profit by leasing your real estate property.

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