If you’re planning to put your commercial structure or property up in the market, you need to have a commercial real estate broker to represent you. There are many debates and discussions about how to choose the right commercial real estate broker for you needs, but there seems to still be no clear cut and fool proof way of finding the right commercial real estate broker. Hopefully, the tips and considerations mentioned below will help you in your search for the one.
If the company you chose works primarily in residential real estate, then you may start seeing some problems soon. Residential real estate is far different from commercial real estate. In the case of the latter, the clients who will be buying your property or leasing it are not concerned about kitchens for the wife and garages for the husband. Instead they are more concerned about the population and possible market, the location and its accessibility to customers and so on. Thus, be sure that you work only with brokerage firms that focus on commercial real estate.
You should also ask about how successfully they’ve worked on projects like yours in the past. It would be helpful if they could show you some testimonials from previous clients. Aside from the length of time they have been in service, you can also ask them about what special accommodations they can do for your specific requirements, which would be a big plus on the scorecard.
When possible, ask your commercial real estate broker what kinds of marketing materials they usually use for projects such as this. Go over their brochures and portfolio, and try to attend presentations if possible to see the processes behind their marketing strategy and see for yourself if this is effective.
The engagement period basically locks you in with the commercial real estate broker. The engagement period, which can be anywhere from six months or more, is the time for the commercial real estate broker to find the right buyer or lessee for your property. The engagement period should be long enough for the broker to find clients, but short enough so you can start looking for a better broker.
Deciding whether you should hire a professional to manage your rental property doesn’t have to be an agonizing decision. It really just depends on your own needs and expectations. Some folks manage their own properties without any stress, while others find it to be quite a headache. One thing is for sure: to successfully manage properties efficiently, time and energy are essential. Do you have what it takes, or should you hire a pro?
Despite record low numbers in 2011, Americans are finally on the move, suggests the Geographical Mobility 2012 report by the United States Census Bureau. Despite a definitive trend toward relocating, most Americans aren’t going far. In fact, 40% are staying within 50 miles of their last residence. We take a look at what
got them packing up and moving on out to a neighborhood nearby.
Should You Invest in a Multifamily Building?
A sound investment strategy is the key to building residual income in the property management industry. The promise of collecting a lifetime supply of rent payment can be quite short lived, however, if you end up getting in over your head. The process is akin to new homeowners. The joy of living independently often overcomes the facts and responsibilities that come with ownership.
If something breaks, you have to pay for it, as you are the property owner. When you want to move, you cannot simply terminate or wait for your lease to expire; unless you can find a buyer for the property, the lending institution will have full ownership. As the owner, not only are you faced with regular maintenance and upkeep expenses, you also are letting strangers live in the property.
The right tenant can make for an easy rental. The wrong ones not so much. Individuals new to the business of property management are better off starting with small single or multi-family dwellings. Besides, commercial offices and upscale apartment complexes are probably out of your league as far as budget goes at this point. Making smart decisions and staying the course is a surefire way to make these lofty property aspirations a reality.
A basic cost evaluation on a given property can be performed within 5-10 minutes, granted you have the needed data. Calculate the total potential rent payments (know how many units and what sizes are available), then subtract the mortgage and repair expenses from the figure.
Error on the side of caution. Assume 30% rental vacancy and factor in major maintenance costs (e.g. plumbing, HVAC, and electrical). Location is crucial for securing the maximum number of tenants. Area competition is something to keep in mind. If after all of this you are still in profit, then make the go ahead to shortlist the property.
Another factor to take into account is security. Is the building located in a neighborhood where crime rates, specifically burglaries, are high? If so, be ready to pay higher than average property insurance premiums. To keep these down and protect your investment and tenants from loss, installing a new security system and/or hiring guards should not be out of the question.
Unexpected costs are the norm with most multi-family buildings, but the value of your property management is not one of them. Expert Property Management is here to make your next investment worthwhile.
The real estate market in Jackson County continues its recovery with the median price of a home growing by 4.2% for the first quarter 2014 to $187,500. The number of homes sold in the first quarter of 2014 has actually decreased to 345 compared to 389 sold in the first quarter 2013.
Jacksonville, which extends all the way to Ruch, has fared much better with the median price of a home increasing in the first quarter 2014 by 16.5% to $282,500.
The number of homes selling has been hampered by the low amount of homes on the market and by many families inability to qualify for a mortgage. Currently there are less than 1,100 homes for sale in Jackson County which is down from a high of over 2500 homes.
There is help on the way. This spring/summer should bring an increase in the number of homes on the market giving buyers more choices. Combine more choices for buyers with an increasing amount of families being able to qualify for a home mortgage through a new federal program and the numbers of homes sold should increase.
The new federal program is called the “Back to Work” program which allows many families with damaged credit, foreclosures and even bankruptcy to apply for a loan as soon as 1 year after the damaging event. See the chart below for details, but waiting periods have been shortened and can be shortened drastically with extenuating circumstances such as families who experienced job loss or high medical bills.
So expect another “Hot Summer” ….for home sales!
Hiring the Right Property Management Company in Oregon
Property oversight is no small matter. Whether you own and rent a single family home or manage multiple, commercial office strips, we know you do not have time to worry about maintenance and upkeep. We also know these things have to be attended to by someone, otherwise your rentals will remain vacant, and that is not good.
By hiring a property management company, you are free to do more important things for your business, such as acquire new clients, and expand your rental network. The right firm, granted the one you choose meets the requisite qualifications, will handle everything from leasing, maintenance, and invoice processing. After all, you are entrusting a major part of your business and essentially placing your brand’s status in the hands of a third party.
Nothing ruins cash flow like a property management company that has a poor reputation in the neighborhood. You will find there are many of these businesses in Oregon, some that will offer low management fees. Never base your decision on price alone. Quality of service and a willingness to collaborate with you, the owner, on all aspects of the property(s) should be their primary concern.
What to Check before Signing the Agreement
Credentials – the property management firm should be a member of at least one accredited organization like the National Apartment Association. This prerequisite alone will help filter out shady prospects.
Ongoing training – be up front about how the business trains its employees. Do they have a designated program in place, and how high is their turnover rate? Remember, these are the individuals you will rely on to clean, maintain, and represent your commercial interests.
Legal standards – first, the business should be a member of the BBB and have a solid record of accomplishment of success (e.g. very few customer complaints). You should verify if they had any problems complying with government regulations.
In order for your business to be successful, it needs to have a solid foundation. Take the time to evaluate the various property management companies in Oregon before prior to making a commitment. At Expert Property Management, we take your interests to heart.