How to Be a Top Commercial Property Manager Today

To be a top commercial real estate property manager you need to have solid market knowledge but you also need a comprehensive set of personal skills to match the needs of the property and the clients that you work for.

Many managers will graduate from ‘residential’ property, and move into ‘commercial’ property as part of growing and expanding their career. Whilst the idea is good, there are many factors and issues involved in changing property type. Commercial property is very different and much more complex than residential property; the knowledge base required of a person providing management services is far more extensive.

I do not want to scare you away from commercial property management as a career; but I do want you to respect the skills and knowledge that you will need in the role. The fee for managing a commercial property is substantial, but with that comes the requirement for personal skill and property control on the part of the manager and the agency.

In talking about this, I am not at this time specifically bringing into the discussion retail property. Retail shopping centre management is even more complex than commercial management. The fees in retail property are for this reason generally higher than that which applies to managing commercial property.

Here are some other main skills required of the property manager in performing their daily and weekly duties.

Negotiation skills will always feature as part of the job specification. Negotiations will be diverse across many different situations including property leasing, contracts and negotiations, maintenance contractor’s, tenants, solicitors, accountants, and landlords. The commercial property manager needs to have professional skills and suitable training when it comes to these diverse negotiation requirements.

Leasing situations will arise continually from the managed properties. The larger the portfolio, the more frequent the leasing requirement. In my opinion the property manager should be well skilled in leasing structures and or leasing negotiations. In this way they can help the landlords that they act for as part of selecting a new tenants for the managed investment property.

Lease documentation will vary greatly from property to property. This then says that the property manager needs to understand the differences in leases, how to bring them about, and how to interpret them. Rent reviews, rental structures, maintenance, option terms, refurbishment requirements, and tenant covenants are all unique situations that require specialist review with each and every lease in a managed portfolio. Critical dates will arise from every lease document as part of the management process. Many an inexperienced property manager has overlooked critical dates in the leases only to find that the landlords position has weakened considerably as a direct result.

Income and expenditure analysis will occur throughout the financial year for a managed property. The income needs to be optimized, and the expenditure needs to be suitably controlled. The difference between the two is the net income and that will have a direct impact on the value of the property for the landlord. It is the property managers duty to ensure that the best outcome is achieved given the prevailing market conditions.

Tenant communications should be well maintained throughout the year. When tenants are overlooked or ignored by the property manager, relationships soon sour, hence this exposes the property to unstable rental and or vacancy factors. Keep in contact with all tenants on a regular basis. Record all communications in writing so that the necessary evidence is available if any lease situation becomes the subject of a dispute.

Landlord reporting and controls will be unique to the particular landlord. Whilst most agencies have some form of income and expenditure controls and specific reporting processes, it is up to the property manager to interpret the reports and provide the necessary recommendations. Every monthly report produced for the managed property should be carefully checked as part of the month end process.

Maintenance controls will involve essential services and maintenance contractors. The age of the property will have some impact on the strategies behind repairs and maintenance. The complexity of the property and the tenancy mix will also have impact on the maintenance activity. Every lease should allow for the permitted use relating to the tenancy. Maintenance may be part of that process and certain maintenance costs may be applied to the tenant or the landlord depending on the particular lease situations. I go back to the point that each lease needs to be fully understood by the property manager.
Property performance is achieved through a fine balance of all of the above issues. That is why special skills and knowledge are part of the job specification for a commercial property manager.

Real Estate Law And How It Affects You

If you’re a landlord or involved in the purchase of property, it’s easy to see how it would be in your best interests to know as much about real estate law as you can. But this area of the legal field isn’t just for those who make their livings off buying or renting property. It affects everyone who owns or rents a home or apartment. One of the oldest aspects of Western legal tenets, the legalities surrounding the purchase and sale of property can be very complex. You may not need a lawyer to rent an apartment, but it never hurts to know the basics.

Renting Property

Whether you’re renting a house or an apartment, real estate law will govern what you can and cannot do. Perhaps more importantly, it governs the limitations of your landlord. Because they fail to look into it themselves, many tenants don’t realize that their landlord or management company is out of bounds. They allow things to happen that are completely illegal. Each state has its own set of laws regarding this common relationship, and it pays to familiarize yourself with them. Without knowing where the boundaries are, you won’t know if you’re being taken advantage of.

Agents

If you’re interested in becoming a Realtor or property agent of any kind, real estate law will have a direct effect on your success. Unbeknownst to many, not just anyone can go out tomorrow and start showing houses. They must be regulated and licensed by the state. Experience, moral character requirements, and the passing of an exam all play a role in determining whether a person will qualify to be licensed. If you want to get into that line of work, check into your state’s prerequisites for licensing.

Zoning

Both the state and the city create zoning districts for their locale. These zones determine what can and cannot happen within them. For instance, if you want to build an office building on a plot of land you purchased in a gated neighborhood, the city is going to tell you that your plans are about to be shut down. Cities are zoned into residential and business districts. Sometimes, these zones are enforced more strictly than even the residents would prefer. Even yard sales have been shut down for doing business in residential zones, although this type of overzealous enforcement of real estate law is relatively rare. Still, it never hurts to check with the city before you attempt to build or do something on questionable property.

Best Rated Home Base Businesses: What Home-Based Business Is Right for You? Part 1

So… you are dreaming of working from home. Would you like to leave your old industry behind? Maybe, say goodbye to your boss? You know there are opportunities out there because millions of other people are doing it. Truthfully, there is a lot of argument about what is the best home-based business to run. This is because success or failure at any venture is a very individualized thing. What might be a perfect fit for one person will be disastrous for another; however, there are a few considerations that are universal and I am going to share them with you. If you follow them you will find what you’re looking for and take it from a work from home/ stay at home dad it will be worth it!Because I believe this subject deserves some in-depth discussion I have written a three part article series concerning it. This article will give you the main considerations that must be made before choosing any potential opportunity.Before you invest time and money into taking the jump into home-based entrepreneurship you must carefully analyze the opportunity and weigh it against others. Don’t make the mistake of jumping at the first decent one that someone puts in front you. Consider, just in the MLM industry there are currently 2,700 competing in the US alone! Taking a few weeks or even months to carefully education yourself in the area of home-based businesses is a smart thing to do. Make sure you do your due diligence before making any decision. It’s a sobering fact that over 97 percent of home-based business owners fail in their first two years! Here are some basic things to consider. I have shared them with many folks over the years and most have greatly thanked me for them later.Four Things You MUST Consider1) The product, Service, or Opportunity Connected to the BusinessesEverything else aside, what is the business you are looking into really about? What exactly are you going to be selling? Who are you going to be helping? What opportunities are you going to be building for others? If the business works out it will be your job. Make sure it is something you will really want to do for years to come. Is this opportunity something you can stay passionate about? If not, keep looking.2) The Start-up Money Needed Verses the Realistic Potential IncomeWhat is the realistic income opportunity? Do to the fact that millions of folks are attempting to work from home every year; there are thousands of opportunities out there they will cost you a lot of money and time, but may not have the income that is initially promised. Make sure you talk to people involved in any opportunity and see the facts concerning the income possibilities verses what you are going to have to spend to actually work the business.3) The Skill-set Necessary to Successfully Run the BusinessIf you do not have the needed skills, make sure you have a plan to get the training you need. Do this before putting tons of time and money on the line. If you are looking at joining an organization what kind of mentoring is available?Can you find the training you need through books or online?4) The Time Needed to Run the BusinessHow much time are you going to have to run your business? How much time are the opportunities you are looking at going to take? I certainly over estimated this when I took the jump. Between my family, church, and ongoing education I spend about 4 hours a day working at my home-based business. I went through three failed ventures before finding one that had the income potential I needed; and fit my skill-set and limited schedule. Map out your day on paper and be realistic about the time it’s going to take to build any new business. This easy step will save you a lot of heartache down the road.If these tips are making sense to you check out part 2 and part 3 of this article series. Rather than give you my personal opinion, or the opinion of some other so called “expert” my goal is to hand you the thought process that will lead you to what is right for you.