5 House Administration Tests for Commercial Housing Proprietors & Asset Managers
With current depressed housing values and rents, capable home management is more important than it has ever been. It is the main contributor to value in stagnant real estate property markets, because while there are prospects for rent growth on the horizon, rent increases could be two to five years off – depending on the market. Administration focuses on conserving and building value NOW.property management dallas
Most industrial real estate property entrepreneurs outsource the property administration functions to a general brokerage firm that offers residence administration services or to a specialized assets management company. Unfortunately, selection of the assets administration firm is often made with very little due diligence on the qualifications of a firm, the person who will actually be doing the managing, and the knowledge of the specific market where properties reside. Picture standing on a busy sidewalk and handing a stranger a suitcase stuffed with cash. In essence, that is the same as selecting a manager without due diligence, because you are handing the equity in the assets to a mere passerby for care and custody.
How do you measure the job a administration company is doing? This article attempts to help you figure that out, because it makes even less sense to settle for poor service from a sub-par administration company then it does to blame all properties’ problems on th e administration company.
Below are five tell-tale exams to check the performance level of your administration (if your management service is in-house, this test can also apply).
Test #1 Few, if any, ideas for improvement come from the assets manager for ways to improve the physical house or the leasing situation.
You hired a caretaker, not a manager. Managers understand the word “proactive”.
Test #2 Residence administration reports are irregular and hard to decipher.
There is no excuse for this and the situation is easy to fix. Have an Excel spreadsheet designed to supply only the information you want, or select one of several comprehensive and off the shelf software programs available. Examples of the latter are the MRI, Yardi, Quicken or Residence Solutions software programs.
I prefer real-time, online file-sharing between the owner or asset manager and the house manager. This setup does double duty – you can access the information anytime you need it for a lender, partners, upper management, etc. Plus, real-time reporting will insure that the home manager won’t wait until the day before a residence report is due to actually do something related to your real estate property. A simple, inexpensive service like Go to My PC can set up a multiple user system and share administration reports.