To many, being an investment property owner is the best way to financial freedom. Owning real estate can certainly create and build wealth. However, owning investment property is not something that comes without work. Finding the best property, negotiating the contract, and then finding tenants and managing the property are all obvious tasks, but the most important things... are Time and Money. Managing these are the hardest jobs in investment property!
Before you get started – there are a two things you should know:
Time is of the Essence:
Do you plan to own the property for a long time, or turn it around quickly? These are important questions when trying to figure out what upgrades and improvements should be done. Also, you can expect that if you do own the property for 5-10 years, or longer, that there will be a new roof that needs to be put on, or a furnace that needs to be replaced. Your investment will need continual investing to keep it in top condition—but if you are only planning on hanging on to it for a year or two, you won’t want to sink money into unneeded expenses that you won’t be able to recoup.
Time is also important as you time the purchase and sale of the property, and balancing that against your needs, situation and the property you are looking for. Timing your sale or purchase is tricky, and that is where having a commercial real estate company on your site can make or break the investment. You don’t want to pay too much when you buy, nor do you want to wait too long when you are ready to sell. Timing can be your best friend or your worst enemy.
Money. Money. Money.
Having money on hand and a great credit situation is imperative for investment property owners. Besides having the cash to buy the property, having the monies available to make repairs and manage emergencies is important.
Work with you financial advisor to determine the property amount of cash vs. loans that you will need to get the right mix for your expenses as well as what you will need to make your payments and still have what you need “just in case.”
You also should make sure you can save enough for retirement and other long-term goals before making the investment. Property ownership is not a sure bet, so it is important to not put all your eggs in one basket!
Property Manager
Kuester Property Management
Charlotte, North Carolina
Showing posts with label investment. Show all posts
Showing posts with label investment. Show all posts
Tuesday, July 20, 2010
Wednesday, May 5, 2010
So You Say You Are Thinking Of Investing in Real Estate?
Property is almost always a great long-term investment. It can also be a practical short term investment as well. Just depends on when you buy, when you sell, and how much both transactions amount to…For the last year, prices on property has been dropping in many areas. That is bad news if you're looking to sell, but it puts the ball in your court if you're interested in buying. The market is changing, and everyone expects a rebound. Right now is a time to jump into the pool and make an investment if you have the cash available. Buying rental property in a down market can be a lucrative investment but there are some factors you should consider before you jump in.
We’ve quizzed our experts, and have these great four tips for you when looking for a rental property.
• Where do people want to live? Where do they want to shop? Where do they want to eat? Find out where tenants want to be…and buy there. Not only where do they want to be now, but look in areas that are going to be good in a few years. If you want a sure-fire bet, ask your real-estate agent to show you properties with solid rental track records.
• Don’t over extend yourself. Make sure your rental income will provide for your expenses. Don’t hedge too tight to the line. You don’t want to be worried on a month to month basis that you will have a shortfall. Plan for emergencies, for the occasional month you don’t have a tenant, for unexpected repairs, and definitely plan to have a small and tidy profit after you pay off your loans or mortgage.
• Find reliable and stable tenants. Screen the people who are renting your property. Don’t skimp out on background checks, credit checks, or references. Don’t take a leap of faith. These tenants are occupying YOUR investment. Make sure you have people who will provide for your income and not damage the property. Never rent to anyone without having them fill out an application that includes references - then be sure to check those references! Verify their employment record and, if they've leased or rented before, talk to former landlords to see if they've had problems in the past. A credit check is also a good idea - if they are already having financial problems, you don't want to be the next one on the list.
• Always have a standard rental contract drawn up that outlines the rules and regulations of the property, the rent and when it is due, any deposits required and rules regarding landlord access to the unit, etc. Be clear about what repairs and maintenance are and are not your responsibility as the landlord and the rules covering changes such as painting the rooms, etc.
• If you can’t manage the property, invest in an agency that can. Don’t have the time to manage the real estate? Then find an agency that can do it and can do it effectively.
• Make investments in your property that will reap further income. Landscaping, painting, new appliances, new carpet or floors – these will all add to the value of any real estate in the long-term, as well as make your property look more attractive to short term tenants.
• Know the laws and regulations in your state or local municipality. If you don’t know them – learn them. Or hire a agency to manage the property that does!
Those are some simple pointers, and there is a lot more fine points and common sense that we can provide you with when thinking about making the leap.
Kuester Property Management
We’ve quizzed our experts, and have these great four tips for you when looking for a rental property.
• Where do people want to live? Where do they want to shop? Where do they want to eat? Find out where tenants want to be…and buy there. Not only where do they want to be now, but look in areas that are going to be good in a few years. If you want a sure-fire bet, ask your real-estate agent to show you properties with solid rental track records.
• Don’t over extend yourself. Make sure your rental income will provide for your expenses. Don’t hedge too tight to the line. You don’t want to be worried on a month to month basis that you will have a shortfall. Plan for emergencies, for the occasional month you don’t have a tenant, for unexpected repairs, and definitely plan to have a small and tidy profit after you pay off your loans or mortgage.
• Find reliable and stable tenants. Screen the people who are renting your property. Don’t skimp out on background checks, credit checks, or references. Don’t take a leap of faith. These tenants are occupying YOUR investment. Make sure you have people who will provide for your income and not damage the property. Never rent to anyone without having them fill out an application that includes references - then be sure to check those references! Verify their employment record and, if they've leased or rented before, talk to former landlords to see if they've had problems in the past. A credit check is also a good idea - if they are already having financial problems, you don't want to be the next one on the list.
• Always have a standard rental contract drawn up that outlines the rules and regulations of the property, the rent and when it is due, any deposits required and rules regarding landlord access to the unit, etc. Be clear about what repairs and maintenance are and are not your responsibility as the landlord and the rules covering changes such as painting the rooms, etc.
• If you can’t manage the property, invest in an agency that can. Don’t have the time to manage the real estate? Then find an agency that can do it and can do it effectively.
• Make investments in your property that will reap further income. Landscaping, painting, new appliances, new carpet or floors – these will all add to the value of any real estate in the long-term, as well as make your property look more attractive to short term tenants.
• Know the laws and regulations in your state or local municipality. If you don’t know them – learn them. Or hire a agency to manage the property that does!
Those are some simple pointers, and there is a lot more fine points and common sense that we can provide you with when thinking about making the leap.
Kuester Property Management
Tuesday, April 27, 2010
Benefits for Buying Commercial Real Estate
Buying commercial real estate can an exciting and profitable business. By investing in commercial properties in the Carolinas you give yourself a long-term revenue stream. Here are just a few benefits of commercial real estate!
1.) Multiple revenue streams: The great thing about commercial real estate is that you can have multiple revenue streams. The property itself can gain value and be resold, you can rent or lease to get a monthly income, and you can use the space yourself as an office out of which you can run your business.
2.) Diversification: It is important to keep your investment portfolio diversified. Investing in Commercial real estate is a great way to add additional properties to your investment portfolio, and having commercial investments adds some variety and options for your portfolio. Commercial real estate properties can be range from apartment properties to office buildings.
3.) Properties are currently available at a great price: There is plenty of commercial real estate available in almost every part of the Carolinas, and the poor market conditions have left some great deals in its wake. Take your time when choosing the right property and you can certainly find prices poised to rise.
There are many benefits to getting into commercial real estate, but like with any type of investing, it is very important to gain as much knowledge as you can before making those tough decisions about what to invest in.
1.) Multiple revenue streams: The great thing about commercial real estate is that you can have multiple revenue streams. The property itself can gain value and be resold, you can rent or lease to get a monthly income, and you can use the space yourself as an office out of which you can run your business.
2.) Diversification: It is important to keep your investment portfolio diversified. Investing in Commercial real estate is a great way to add additional properties to your investment portfolio, and having commercial investments adds some variety and options for your portfolio. Commercial real estate properties can be range from apartment properties to office buildings.
3.) Properties are currently available at a great price: There is plenty of commercial real estate available in almost every part of the Carolinas, and the poor market conditions have left some great deals in its wake. Take your time when choosing the right property and you can certainly find prices poised to rise.
There are many benefits to getting into commercial real estate, but like with any type of investing, it is very important to gain as much knowledge as you can before making those tough decisions about what to invest in.
Saturday, April 10, 2010
Commercial Property: Keeping an Eye on the Competition
When you are considering the purchase of a commercial property, one of the best things that you can do ahead of time is research the competition.
How long do the other buildings have unoccupied space?
Are there several available properties near the one you are considering?
What is the average length of lease of the building you are considering purchasing?
What is the average length of lease of the similar buildings in the area.
Take the time to walk the grounds of similar buildings. Can you see what they are doing well? Do they have well maintained landscaping, walkways and parking lots? What makes these buildings attractive to tenants? What could they do better? Can you talk to any of the business tenants of neighboring building?
Investing in commercial property is a big decision and goes way beyond just finding a place and putting a "for lease" sign up! Before you buy, investigate the market, do your homework, and make sure to put considerable time in "knowing your competition." Learning from the people who are doing it well, will make you more successful!
Property Manager
www.Kuester.com
How long do the other buildings have unoccupied space?
Are there several available properties near the one you are considering?
What is the average length of lease of the building you are considering purchasing?
What is the average length of lease of the similar buildings in the area.
Take the time to walk the grounds of similar buildings. Can you see what they are doing well? Do they have well maintained landscaping, walkways and parking lots? What makes these buildings attractive to tenants? What could they do better? Can you talk to any of the business tenants of neighboring building?
Investing in commercial property is a big decision and goes way beyond just finding a place and putting a "for lease" sign up! Before you buy, investigate the market, do your homework, and make sure to put considerable time in "knowing your competition." Learning from the people who are doing it well, will make you more successful!
Property Manager
www.Kuester.com
Thursday, March 25, 2010
Commercial Property will hit bottom in 2010--and be a new investors dream!
If you are the owner of a commercial properties, hold on for a rough year. 2010 will likely be the rock-bottom for the commercial real-estate market.
The silver-lining is that new investors will benefit if they are able to step in and buy up the properties. Sellers of these commercial properties have been hesitant to lower prices, however they will need to to get the property sold and avoid foreclosure. Both scenarios work in favor of the buyer, who, if they are able to secure a bank loan, or have the cash on-hand will find remarkable deals towards the year's end and into 2011.
The silver-lining is that new investors will benefit if they are able to step in and buy up the properties. Sellers of these commercial properties have been hesitant to lower prices, however they will need to to get the property sold and avoid foreclosure. Both scenarios work in favor of the buyer, who, if they are able to secure a bank loan, or have the cash on-hand will find remarkable deals towards the year's end and into 2011.
Sunday, January 10, 2010
Commercial Property For The Personal Investor
In these tough economic times, you have to make savvy business decisions when it comes to your personal wealth. Especially when it comes to any investment opportunities. I tend to remember what my Grandfather said about investing: “Buy land! They don’t make it anymore…”
For many investors, the land best invested in is commercial real estate. In the right climate, commercial real estate can produce instant and healthy returns. Whether you are a large investor or a small investor, there are plenty of deals that can packaged to suit your economic needs. Certainly, larger investors have a greater range of options available. But small investors can find suitable opportunities to help them avoid the ever-risky and stressful stock market.
While some areas of the country have seen some major devaluation in real estate, there are still areas of this state – and the rest of the country – that are pretty much puncture proof. Work with the proper expert to find the right property, at the right location, to suit your short-term or long-term investment needs. Do your research and ask for advice, study the trends and proceed with caution. With a little help and a lot of smarts, you will be able to reap big rewards from the right commercial real estate investment.
Property Manager
Kuester Property Management
www.kuester.com
For many investors, the land best invested in is commercial real estate. In the right climate, commercial real estate can produce instant and healthy returns. Whether you are a large investor or a small investor, there are plenty of deals that can packaged to suit your economic needs. Certainly, larger investors have a greater range of options available. But small investors can find suitable opportunities to help them avoid the ever-risky and stressful stock market.
While some areas of the country have seen some major devaluation in real estate, there are still areas of this state – and the rest of the country – that are pretty much puncture proof. Work with the proper expert to find the right property, at the right location, to suit your short-term or long-term investment needs. Do your research and ask for advice, study the trends and proceed with caution. With a little help and a lot of smarts, you will be able to reap big rewards from the right commercial real estate investment.
Property Manager
Kuester Property Management
www.kuester.com
Tuesday, January 5, 2010
Property Management: Keeping the Tenants Happy
Most people who have rental properties don’t lease them out for the joy of meeting new people. Rental properties are typically an important source of income and/or a solid investment. As long as they stay rented, your investment remains healthy and your income will remain steady. Solid and reliable property managers are crucial to keeping your tenants happy. Happy tenants are tenants who will not only renew their leases, but also recommend your properties to friends. Quality property managers also know how to deal with problem tenants, ensuring that rent is paid in a timely fashion and that your property will not sustain any costly damage.
No matter the reason why you turn to a property management agency, an attentive and responsible property manager will keep things humming along. Property mangers are the guys who shovel the snow, trim back the trees, and keep Mother Nature at bay (or, they know who to hire to make all this happen!) You have to remember that all of the upkeep that is needed to ensure your house runs smoothly – well, that kind of upkeep and more is needed to keep your rental property running. A property manager or management agency is the best bet to ensure you don’t spend your life keeping your rental properties running smooth.
Occasionally something will break or fail at even the most carefully maintained residence. Experienced property management agencies know what contractors to call when there is a problem and what contractors to avoid so not to get over-billed. Many property managers have preferred relationships with plumbers and other repairmen, and can also negotiate the best terms with other service providers like landscaping, pool cleaning, painters, snow removal and general contractors. Depending on your property and business relationship, your property manger can probably run things so efficiently that you might totally forget about the unit (well, at least until the checks come in!)
Property owners tend to choose an outside management agency to run their assets for many of the reasons above. Qualified property mangers will pay for themselves, by saving you on headaches and money--and keep your tenants happy!
No matter the reason why you turn to a property management agency, an attentive and responsible property manager will keep things humming along. Property mangers are the guys who shovel the snow, trim back the trees, and keep Mother Nature at bay (or, they know who to hire to make all this happen!) You have to remember that all of the upkeep that is needed to ensure your house runs smoothly – well, that kind of upkeep and more is needed to keep your rental property running. A property manager or management agency is the best bet to ensure you don’t spend your life keeping your rental properties running smooth.
Occasionally something will break or fail at even the most carefully maintained residence. Experienced property management agencies know what contractors to call when there is a problem and what contractors to avoid so not to get over-billed. Many property managers have preferred relationships with plumbers and other repairmen, and can also negotiate the best terms with other service providers like landscaping, pool cleaning, painters, snow removal and general contractors. Depending on your property and business relationship, your property manger can probably run things so efficiently that you might totally forget about the unit (well, at least until the checks come in!)
Property owners tend to choose an outside management agency to run their assets for many of the reasons above. Qualified property mangers will pay for themselves, by saving you on headaches and money--and keep your tenants happy!
Property Manager
Charlotte area property management www.kuester.com Fort Mill, Boone, Charlotte, Myrtle Beach & Concord
Monday, November 30, 2009
Multi-Unit Investment Property Buildings, Charlotte
Dear Property Manager:
My wife and I bought a multi-unit commercial investment property in Charlotte several years ago. I have been doing the property management of these properties myself (I am semi-retired), but my wife and I would like to move out of Charlotte and retire to Florida in the next year. The property gives us a good amount of income, so we would like to keep it, but hire a property management company to manage it for us.
Can this be done cost-effectively, so that we still derive a decent income, but we can also move to Florida?
Bill & Margaret – Charlotte
Dear Bill and Margaret,
A professional property management company would definitely be a good choice for you, since the purpose of the company is to save money and handle the day-to-day operations. Depending on what you have been doing, a property management company may be able to help increase the tenant occupancy and help the property generate more income—off setting the expense.
Additionally, a property management company will be able to look at other potential investments that may be a good fit for you in the same area.
You are smart to look at hiring a property manager for your investment property—and with the right choice, you will be able to enjoy your retirement in Florida, while generating a nice monthly income to support yourself and your wife.
Thanks for writing into us! If you would like to interview Kuester Property Management in Charlotte, please give us a call at 704.973.9019.
Property Manager
My wife and I bought a multi-unit commercial investment property in Charlotte several years ago. I have been doing the property management of these properties myself (I am semi-retired), but my wife and I would like to move out of Charlotte and retire to Florida in the next year. The property gives us a good amount of income, so we would like to keep it, but hire a property management company to manage it for us.
Can this be done cost-effectively, so that we still derive a decent income, but we can also move to Florida?
Bill & Margaret – Charlotte
Dear Bill and Margaret,
A professional property management company would definitely be a good choice for you, since the purpose of the company is to save money and handle the day-to-day operations. Depending on what you have been doing, a property management company may be able to help increase the tenant occupancy and help the property generate more income—off setting the expense.
Additionally, a property management company will be able to look at other potential investments that may be a good fit for you in the same area.
You are smart to look at hiring a property manager for your investment property—and with the right choice, you will be able to enjoy your retirement in Florida, while generating a nice monthly income to support yourself and your wife.
Thanks for writing into us! If you would like to interview Kuester Property Management in Charlotte, please give us a call at 704.973.9019.
Property Manager
Sunday, November 15, 2009
Investing in Your Business in a Down Economy
Now is the time to invest! If you currently own a business and would like to move that business into a bigger space, or expand the space you have now is the time!
Property management companies and building owners are hungry to have their multi-unit commercial properties filled and you can get an amazing deal on space now if you qualify. So many people are on the fence about whether of not to take that leap given the economic conditions, yet we are here to tell you NOW is the time... and here is why:
1) If you can keep a business going in a down economy, you will thrive when the clouds lift.
2) You can spend this time perfecting your business process, so that when you are busy, you have all the "kinks" worked out.
3) All signs, and most experts agree that we are starting what will be a slow, but steady upswing--now is the time to invest!
4) You will get a great deal! Investors with good credit will be able to qualify for some of the best rates ever! Property owners and managers are eager to get their properties filled with great businesses - so if you are able to make the move, you will be rewarded with great deals, great rates and accommodating vendors.
So, for all of you who have wished for the extra space, thought about the move to another building or wished to start their own business and not had the motivation to do it... NOW is the time.
Property Manager
Kuester Property Management
Charlotte, NC
Property management companies and building owners are hungry to have their multi-unit commercial properties filled and you can get an amazing deal on space now if you qualify. So many people are on the fence about whether of not to take that leap given the economic conditions, yet we are here to tell you NOW is the time... and here is why:
1) If you can keep a business going in a down economy, you will thrive when the clouds lift.
2) You can spend this time perfecting your business process, so that when you are busy, you have all the "kinks" worked out.
3) All signs, and most experts agree that we are starting what will be a slow, but steady upswing--now is the time to invest!
4) You will get a great deal! Investors with good credit will be able to qualify for some of the best rates ever! Property owners and managers are eager to get their properties filled with great businesses - so if you are able to make the move, you will be rewarded with great deals, great rates and accommodating vendors.
So, for all of you who have wished for the extra space, thought about the move to another building or wished to start their own business and not had the motivation to do it... NOW is the time.
Property Manager
Kuester Property Management
Charlotte, NC
Saturday, October 10, 2009
When Should You Hire a Property Management Company?
One of the major decisions as a property owner is whether you should hire a property management company. Many landlords manage properties all by themselves, occasionally with the help of an employee or associate. Depending on the type of property, and how demanding your tenants are, some landlords might need outside assistance.
Property management companies often are the landlords first line of defense. They take the late night phone calls, they collect the rent, they haggle with demanding tenants. Nightmare tenant? The property manager will even handle the eviction. A qualified management agency will also bring their contacts and experience to your property, sometimes having more solid networks and resources then an individual.
If you have lot of properties or units that you rent to the public, the more you're likely to benefit from a management company. Especially if your full-time job isn’t going to be a landlord. Living out of the region from the property in question is also incredibly tough. You can’t react quickly or easily to any property issue if you are several time zones or states away. Hiring a property management service is critical in dealing with issues that you will not be able to handle from across the continent.
Many landlords and property owners are looking at additional properties as investments. They shirk away from any type of hands-on management, as it is either not their forte, or simply they have different priorities. If you have never had to find a tenant or renter for a property, you will discover that it can a rewarding, interesting, frustrating, stressful, and exhausting process. Spending your weekends interviewing possible renters may not be your cup of tea. If you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring help to manage your property.
If you happen to participate in an affordable housing program, things are going to get super complicated. In these programs, the landlord receives financial assistance, in the form of a grant, low-interest loan, or tax credits, in return for agreeing to rent at least part of the property to tenants earning below a certain income level. In order to receive the financial assistance, the landlord must comply with a STRINGENT set of rules. There is a ton of paperwork, as there always is with anything that the government hovers around. Again, if you are not planning on being a landlord FULLTIME, then you should hire a property management company that has past success with these particular housing programs.
Now if all this sounds interesting or intriguing to you, then perhaps you need to start talking to some possible property managers. How do you find a property manager? Well….That is a completely different article! Tune in again in a few weeks to find out our advice on how to FIND a qualified property manager.
Property Manager
Kuester Companies
Charlotte Concord Boone Myrtle Beach Fort Mill
Property management companies often are the landlords first line of defense. They take the late night phone calls, they collect the rent, they haggle with demanding tenants. Nightmare tenant? The property manager will even handle the eviction. A qualified management agency will also bring their contacts and experience to your property, sometimes having more solid networks and resources then an individual.
If you have lot of properties or units that you rent to the public, the more you're likely to benefit from a management company. Especially if your full-time job isn’t going to be a landlord. Living out of the region from the property in question is also incredibly tough. You can’t react quickly or easily to any property issue if you are several time zones or states away. Hiring a property management service is critical in dealing with issues that you will not be able to handle from across the continent.
Many landlords and property owners are looking at additional properties as investments. They shirk away from any type of hands-on management, as it is either not their forte, or simply they have different priorities. If you have never had to find a tenant or renter for a property, you will discover that it can a rewarding, interesting, frustrating, stressful, and exhausting process. Spending your weekends interviewing possible renters may not be your cup of tea. If you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring help to manage your property.
If you happen to participate in an affordable housing program, things are going to get super complicated. In these programs, the landlord receives financial assistance, in the form of a grant, low-interest loan, or tax credits, in return for agreeing to rent at least part of the property to tenants earning below a certain income level. In order to receive the financial assistance, the landlord must comply with a STRINGENT set of rules. There is a ton of paperwork, as there always is with anything that the government hovers around. Again, if you are not planning on being a landlord FULLTIME, then you should hire a property management company that has past success with these particular housing programs.
Now if all this sounds interesting or intriguing to you, then perhaps you need to start talking to some possible property managers. How do you find a property manager? Well….That is a completely different article! Tune in again in a few weeks to find out our advice on how to FIND a qualified property manager.
Property Manager
Kuester Companies
Charlotte Concord Boone Myrtle Beach Fort Mill
Sunday, August 30, 2009
Investment Property Manager
Dear Property Manager:
My friend has mentioned needing an investment property manager for a property he is buying in Boone. Is an investment property manager different than any other time of property manager? What are the responsibilities of an investment property manager?
Jeremy, Charlotte, NC
Dear Jeremy,
While there are variations on the types of property management, and what in included in a property management contract, it is important to remember that most commercial properties are "investments" and the reason you hire a property management company is to protect your investment.
Investment property management companies manage properties that serve as sources of income for the owner. An Investment property management company may be hired to provide a comprehensive and professional service, such as tenant vetting, collecting rent, handling complaints and evictions, and maintenance.
The primary task of an investment property management company is to find tenants which involves marketing the property. A good property manager will understanding where and how to advertise the property--knowledge gained from experience.
When renting an unoccupied or vacant space, the investment property manager also involves meeting with and giving a tour to prospective tenants, going over all terms and conditions, providing information on deposits and application fees, and explain the differentiating features of the unit or surrounding land.
Once a unit/building is rented, the investment property manager will often handle all financial issues, including collecting the security deposit, fees and the monthly rent. If the tenant is late in the payment, it is the responsibility of the property manager, to manage the situation which may include beginning the process of eviction--an unpleasant situation that may end up involving the owner and/or an attorney.
The investment property manager is also tasked with handling maintenance issues, including routine landscaping and handling repairs. The property manager may utilize the maintenance staff, or contract with an outside company depending on the company and the complexity of the repair.
I hope this answers your questions and if you or your friend need any more information about investment property management - feel free to give us a call at our Boone office at 803.578.7725.
Property Manager
Kuester: Boone.
My friend has mentioned needing an investment property manager for a property he is buying in Boone. Is an investment property manager different than any other time of property manager? What are the responsibilities of an investment property manager?
Jeremy, Charlotte, NC
Dear Jeremy,
While there are variations on the types of property management, and what in included in a property management contract, it is important to remember that most commercial properties are "investments" and the reason you hire a property management company is to protect your investment.
Investment property management companies manage properties that serve as sources of income for the owner. An Investment property management company may be hired to provide a comprehensive and professional service, such as tenant vetting, collecting rent, handling complaints and evictions, and maintenance.
The primary task of an investment property management company is to find tenants which involves marketing the property. A good property manager will understanding where and how to advertise the property--knowledge gained from experience.
When renting an unoccupied or vacant space, the investment property manager also involves meeting with and giving a tour to prospective tenants, going over all terms and conditions, providing information on deposits and application fees, and explain the differentiating features of the unit or surrounding land.
Once a unit/building is rented, the investment property manager will often handle all financial issues, including collecting the security deposit, fees and the monthly rent. If the tenant is late in the payment, it is the responsibility of the property manager, to manage the situation which may include beginning the process of eviction--an unpleasant situation that may end up involving the owner and/or an attorney.
The investment property manager is also tasked with handling maintenance issues, including routine landscaping and handling repairs. The property manager may utilize the maintenance staff, or contract with an outside company depending on the company and the complexity of the repair.
I hope this answers your questions and if you or your friend need any more information about investment property management - feel free to give us a call at our Boone office at 803.578.7725.
Property Manager
Kuester: Boone.
Friday, August 21, 2009
Investing in Commercial Property
Commercial property is a worthy investment, but one that needs to be researched, studied, and managed to make a profitable return. Here is what you need to know about commercial property investing"
The Legal Stuff
Before getting too far in your property investment research, you should look into all the applicable local laws, and hire a business attorney who can help navigate the often abstract and confusing laws. Make sure to work with a lawyer who is familiar with the local laws in the place where you plan to invest in property, since the laws sometimes differ from one state to another.
Having a good attorney who can explain and handle the laws, as well as the contract is vital to a successful investment. This is one area where you need to spend a lot of time and resources!
Show Me the Money
You can base your projected income on current trends and future projections, however you need to be sure that the value of the property will appreciate. When and if you decide to sell, you will want to get more than you paid for it.
You need to look at the different ways the property can be an income generator. Look at how the property is zoned, the location, other rules and regulations regarding the specific purpose that the land can be used for. Remember, when buying commercial land for your business, ensure that you will legally be able to use the land for the intended purpose.
Capital
If you are like most people, you don't have all the capital necessary to invest in commercial property, and will probably need a commercial property loan. You will need a lot of documentation to apply for this loan so put together all information on your business operations, your financial status and estimated earning potential and the property title deed. The lender wants to make sure they are making a good investment too!
When calculating cost for any particular property, don't forget fees payable to any professionals you may have hired as consultants to close the deal, any registration or other legal expenses to be paid. These expenses tend to amount to quite a bit, and therefore should be budgeted when calculating the feasibility of a property.
Location, Location
Don't be afraid to shop around before choosing a piece of property. The first may not be the best and it is better to do the extra legwork now, then be wrong later!
Management
In order to protect your investment once it has been made, contract with a reputable local property management company. This company can handle the day to day operations, the tenant negotiations, maintenance, etc. Not only increasing your possible ongoing incoming income, but the property value itself.
Investing in commercial property is a proven way to grow your money, but not everyone can successful. Be sure to take the necessary steps before, during and after in order to ensure a long term positive investment.
The Legal Stuff
Before getting too far in your property investment research, you should look into all the applicable local laws, and hire a business attorney who can help navigate the often abstract and confusing laws. Make sure to work with a lawyer who is familiar with the local laws in the place where you plan to invest in property, since the laws sometimes differ from one state to another.
Having a good attorney who can explain and handle the laws, as well as the contract is vital to a successful investment. This is one area where you need to spend a lot of time and resources!
Show Me the Money
You can base your projected income on current trends and future projections, however you need to be sure that the value of the property will appreciate. When and if you decide to sell, you will want to get more than you paid for it.
You need to look at the different ways the property can be an income generator. Look at how the property is zoned, the location, other rules and regulations regarding the specific purpose that the land can be used for. Remember, when buying commercial land for your business, ensure that you will legally be able to use the land for the intended purpose.
Capital
If you are like most people, you don't have all the capital necessary to invest in commercial property, and will probably need a commercial property loan. You will need a lot of documentation to apply for this loan so put together all information on your business operations, your financial status and estimated earning potential and the property title deed. The lender wants to make sure they are making a good investment too!
When calculating cost for any particular property, don't forget fees payable to any professionals you may have hired as consultants to close the deal, any registration or other legal expenses to be paid. These expenses tend to amount to quite a bit, and therefore should be budgeted when calculating the feasibility of a property.
Location, Location
Don't be afraid to shop around before choosing a piece of property. The first may not be the best and it is better to do the extra legwork now, then be wrong later!
Management
In order to protect your investment once it has been made, contract with a reputable local property management company. This company can handle the day to day operations, the tenant negotiations, maintenance, etc. Not only increasing your possible ongoing incoming income, but the property value itself.
Investing in commercial property is a proven way to grow your money, but not everyone can successful. Be sure to take the necessary steps before, during and after in order to ensure a long term positive investment.
Saturday, August 1, 2009
Buy Commercial Property
Commercial real estate can diversify your portfolio, create tax benefits and build long-term wealth. However, making that investment into commercial real estate can be a risk, especially to those without previous experience or industry knowledge. So always work with professionals and do your research before making any final decisions.
Put Together a Great Team
No matter where you are on the investment property learning curve, it's a good idea to get advice and support of industry experts such as commercial real estate agents, property attorneys and property management firms to assist you in making the right decisions.
Do Your Research
Research similar properties, including incomes, the demographics of the residents in the area, the traffic, the vacancy rate, current trends and industry information for the businesses you may have as tenants. Also, if you are buying an occupied property, know how long the leases are for the current tenants and at what price. Are the at fair market price? Will these tenants stay to renew under new management? Are the tenants you would like to keep?
As with any investment, commercial real estate requires due diligence and a keen business sense. Consider carefully before investing and always seek the advice of professionals to garner the best results.
Put Together a Great Team
No matter where you are on the investment property learning curve, it's a good idea to get advice and support of industry experts such as commercial real estate agents, property attorneys and property management firms to assist you in making the right decisions.
Do Your Research
Research similar properties, including incomes, the demographics of the residents in the area, the traffic, the vacancy rate, current trends and industry information for the businesses you may have as tenants. Also, if you are buying an occupied property, know how long the leases are for the current tenants and at what price. Are the at fair market price? Will these tenants stay to renew under new management? Are the tenants you would like to keep?
As with any investment, commercial real estate requires due diligence and a keen business sense. Consider carefully before investing and always seek the advice of professionals to garner the best results.
Tuesday, May 5, 2009
Should I Buy a Franchise?
Dear Property Manager:
I was laid off a year ago after 27 years with the same company. I have been looking for another job for several months, to no avail. I have a bit of money saved up and I think that this might be the right time to be my own boss. I am considering purchasing a franchise. Can you tell me what to look for in a franchise that would make it a good opportunity? Is this something that will support me moving forward?
Hale W. Concord, NC
Dear Hale,
You can determine if a franchise opportunity is a good one, by going through the check list below:
Franchise Opportunity Checklist
1) Is there growth potential? Do your due diligence and research this one! The franchiser will provide some information, but you also have to look at the specific location you are considering. If there are already several sandwich shops near that corner, then you need to consider a new location, or a new business.
2) Does the franchise have a strong management team? How long has the team been at the franchise? What are they like to work with? Ask other franchise owners, and meet the management team yourself and determine if they are people you respect and can work with long term.
3) Is the franchise growing? Is the franchise you are considering a healthy one with year over year increase in units?
4) Does the franchiser provide the assistance and training you will need? Different franchises have different systems and support. Yours should be a good match with what you are looking for.
5) What do the other owners think? Are the other franchisees happy with their decision to buy and run the franchise? Talk to several and get their opinions about the good/bad things about the franchise.
6) What kind of marketing & advertising support does the franchise offer? Does the franchiser set up a website for each franchise, do print media or TV ads? Is there a budgeted amount of advertising dollars that you can use? What restrictions/freedom do you have as the franchise owner to advertise your business?
7) Can you make enough profit? Some franchises will sustain themselves and turn a tidy profit. Others are part-time undertakings, at least initially. Check with the franchiser for estimated investment and earnings, and talk with other franchisees to see if they are satisfied with the net.
8) Are the financial records detailed and sound? Have your accountant review the franchise financial statements to determine the strength and possible longevity of the company as a whole. Are decisions being made that are in the best interest of the franchisees?
9) Are you treated with honesty and respect by the franchise? When you talk to owners, management, and others in the franchise, are you given timely and adequate and candid responses?
10) Does the franchise fit your personality and fulfill your passion? To be successful, no matter how financially sound the decision may be, you will have to chose a franchise that you have a connection with—one that suits you and your personality. If you are a health food fanatic, a fast-food chain may not work for you. Think about the company and the product/service and how well you will represent each other.
Good luck with your decision!
Property Manager
Myrtle Beach, NC
www.kuester.com
I was laid off a year ago after 27 years with the same company. I have been looking for another job for several months, to no avail. I have a bit of money saved up and I think that this might be the right time to be my own boss. I am considering purchasing a franchise. Can you tell me what to look for in a franchise that would make it a good opportunity? Is this something that will support me moving forward?
Hale W. Concord, NC
Dear Hale,
You can determine if a franchise opportunity is a good one, by going through the check list below:
Franchise Opportunity Checklist
1) Is there growth potential? Do your due diligence and research this one! The franchiser will provide some information, but you also have to look at the specific location you are considering. If there are already several sandwich shops near that corner, then you need to consider a new location, or a new business.
2) Does the franchise have a strong management team? How long has the team been at the franchise? What are they like to work with? Ask other franchise owners, and meet the management team yourself and determine if they are people you respect and can work with long term.
3) Is the franchise growing? Is the franchise you are considering a healthy one with year over year increase in units?
4) Does the franchiser provide the assistance and training you will need? Different franchises have different systems and support. Yours should be a good match with what you are looking for.
5) What do the other owners think? Are the other franchisees happy with their decision to buy and run the franchise? Talk to several and get their opinions about the good/bad things about the franchise.
6) What kind of marketing & advertising support does the franchise offer? Does the franchiser set up a website for each franchise, do print media or TV ads? Is there a budgeted amount of advertising dollars that you can use? What restrictions/freedom do you have as the franchise owner to advertise your business?
7) Can you make enough profit? Some franchises will sustain themselves and turn a tidy profit. Others are part-time undertakings, at least initially. Check with the franchiser for estimated investment and earnings, and talk with other franchisees to see if they are satisfied with the net.
8) Are the financial records detailed and sound? Have your accountant review the franchise financial statements to determine the strength and possible longevity of the company as a whole. Are decisions being made that are in the best interest of the franchisees?
9) Are you treated with honesty and respect by the franchise? When you talk to owners, management, and others in the franchise, are you given timely and adequate and candid responses?
10) Does the franchise fit your personality and fulfill your passion? To be successful, no matter how financially sound the decision may be, you will have to chose a franchise that you have a connection with—one that suits you and your personality. If you are a health food fanatic, a fast-food chain may not work for you. Think about the company and the product/service and how well you will represent each other.
Good luck with your decision!
Property Manager
Myrtle Beach, NC
www.kuester.com
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