MANAGING YOUR REAL ESTATE PROPERTY WITH A PROFESSIONAL
Buying and owning real estate is an investment strategy that can be both satisfying and lucrative. Real estate is one of the top most lucrative businesses in Nigeria. Though being lucrative, if poorly managed can yield little or no return on investment. When real estate is neglected it is susceptible to damage and loss. To maintain homes and businesses, owners of real estate hire professional realtors. Loss of investment may be suffered by investors due to poor management and can be avoided if the acquisition, sale and management of the real estate property is being committed in the hands of professional realtors like KingsCourt Realtors.
Property management is the overseeing of every aspect of real estate, that is residential, commercial and/or industrial real estate, including apartments, detached houses and shopping centres. Fundamentally, it means managing of property owned by another party or entity. Using professional help to manage your property saves you the stress of dealing with tenants, marketing your property, rent collection, repairs and maintenance, and even dealing with evictions. Professionals preform all the tasks that would keep property owners up at night worrying about the responsibilities ahead. Thus, hiring an experienced property management company like KingsCourt Realtors will only yield positive prospects for your property and for you as a real estate investor. The professional is the property owner’s partner in maximising the return on investment of the property through the efficient performance of their full functional areas of responsibility. The professional acts in the best interest of the owner to maintain the property, keep it occupied with tenants, collect rents, budget improvements and maintain records.
ROLES OF PROFESSIONALS IN MANAGING YOUR REAL ESTATE PROPERTY
In real estate property management, the professional has four major areas of responsibility and it should be outlined in an agreement with the property owner. The four major areas are:
- Marketing and financing
- Tenant and occupancy
- Property and facility management
- Administration and risk management
Marketing and Financing
In real estate property management, the professional leading through knowledge and understanding of a property transaction will guide the property owner through the process of valuing his property and determining the appropriate rent/sale price to fix to maximize profit, and also giving his property the maximum exposure through proposed marketing strategies.
The professional proposes marketing programs, special promotions and other advertising strategies to the property owner in order to maximise occupancy and rental rates. Having a firm knowledge of the area and competitive rental properties, the professional can present market analysis to assist the property owner set an appropriate rental rate for his property. Understanding financial statements, profit, and loss, income taxes and budgeting are also very important for the professional to assist the property owner manage his property efficiently.
Tenant and Occupancy
Owning a rental property comes with responsibilities. The most basic responsibility is proper upkeep and maintenance, to ensure the tenants can use the property as intended. As a landlord, you hope that your rental property will be a lucrative investment as earlier written, “if a property is poorly managed, it will yield little or no return on investment”.
So the professional having good knowledge of the laws guiding landlords and tenants, assist in screening the tenant and get to accept the best option. Getting the tenant to move in, is just the beginning. The professional will respond to their requests, monitor their activities as regards the lease requirements, collect rent in a timely manner, and continually assess the tenants’ satisfaction as regards the property amenities versus those of competing rental properties in the area. The unwelcome task of eviction for violations or non-payment is also part of the professional’s responsibility.
Property and Facility Management
Property management is also the physical management of the structures and outdoor areas. Landscaping, electrical, plumbing, roof, walls, appliances, and much more are all part of the physical property. The professional keeps the property in safe and habitable condition. The professional is responsible for the physical management of the property, including regular maintenance and emergency repairs.
The professional ensures that the work done by contractors and other repairmen is up to standard and that they are completing their work in a timely manner. Professionals also ensure that the issue of budgeting and provision of funds for facility maintenance are provided in the agreement. An agreed percentage of the rent or sales of properties (in the case of estate buildings) must be kept aside for the maintenance of the facilities and provision of new ones.
Administration and Risk Management
This section refers to the files and records aspect of property management. Federal, state and local governments all have some jurisdiction over real estate property management activities. Certain reporting requirements must be met for all of them. Meticulous records for accounting and taxes are a must.
For reasons of liability, all activities and tenant interaction must be recorded and maintained for specified periods. Though also related to financial functions, there are very rigid requirements in most states for the handling of funds paid by renters for disbursement to owners.
At KingsCourt Realtors, our property and facilities management services cover all areas and asset types from large-scale shopping centres, residential portfolios to office complexes and our team of experts provide a complete range of management and consultancy services to clients.
We invest heavily in our people, processes and technology, providing dedicated account teams to our clients and offering transparent real time reporting over the web.