The usual way that a property management company comes on the scene is when the owner of a building makes a contact. Often the owner has just acquired the property through a purchase or exchange, then looks for a manager.
However, if you are about to acquire an income property, consider contacting a property management company in advance. The ability to estimate income and expenses and a keen knowledge of the market makes a property manager a valuable asset during the pre-acquisition process. The property manager has the background necessary to provide significant assistance in determining both the location, desirability and economic feasibility of a property.
Property Inspection And Evaluation
When evaluating a property, have a property manager perform a comprehensive inspection of the physical property, thoroughly review current leases and past maintenance records, and, when appropriate, talk with the on-site staff, and current tenants and neighbors.
Preliminary market analyses and pro formas should be completed during the pre-acquisition stage to determine the property’s operating costs and to project possible investment return. These analyses will help establish whether the property will perform according to the owner’s investment objectives, or whether the property is too risky for acquisition.
Analyze And Maximize Rent Structure
When the property is acquired, the property manager can determine what can be done with the rent structure. The goal will be to increase the rents to market levels and maximize value. Tenants with leases can not be given rent increases if their leases prohibit them, but the rent for vacant space or for property with expiring leases may be increased.
Today’s investor in commercial real estate must have a grasp of market conditions and investors need assurance about the true condition of the property and it’s potential. With increased competition, the market place is becoming more complicated. As your professional commercial real estate management advisors, we are in the position to help you in making a more educated decision in real estate transactions. With this kind of information when considering a commercial property, planning is better and there is less chance for error.
Contact a Property Manager Today!