Real Estate Property Management: Is There a Tenant in the House

You?re about to take the plunge and buy your first investment property. Should you buy something that you can live in, something you can develop and sell on, or should you buy a designated rental property? If you are going to choose the last option then you need to do your homework first. There are different types of tenancies and every one of them should be handled differently. If you do decide to opt for rental property investment then check out the property investment forum at http://www.singingpig.co.uk/articles.aspx#propertyInvestment
to find out more. It may be more complicated than you think. So before you make your final bid, or put your money on the table, you should ask where there is a tenant in the house.

Some properties that are sold at auction already have sitting tenants. Real estate property management is not for the beginner. To begin with you would need a substantial sum of money behind you if you have set your mind on rental property investment. Then, if you still think you are up for real estate property management you need to do your homework. The property investment forum will give you some insight on what you need to know. For a start rental property investment is not the same as other investments, real estate property management can be a big headache for the uninitiated. The market changes from day to day so what works for one person at a certain point may not work for you at another. You should make sure that your finances are such that they can support you through a period when property market prices go down rather than up.

So you take the plunge and you?re now in the business of real estate property management. You need to make sure that you?ve done your cash flow forecasts because you have to have sufficient funds for property maintenance. Landlords who don?t carry out proper maintenance not only upset their tenants, they could fall foul of the law and find themselves in a worse financial position. Rental property investment may be a good proposition if the place is empty when you buy it because sitting tenants may have a regulated tenancy which means that you could find yourself getting less than the market rental rate. This where the property investment forum can be really helpful because it gives a breakdown of the different types of tenancies.

Sometimes people are anxious to make money in property development but are not fully prepared for all the hard work that needs doing or the problems they may encounter. You shouldn?t be too quick to give up the day job. As this article has already pointed out the property investment market is not static and unless you have some money to fall back on you could find yourself in a lot of trouble. When it comes to rental property, as contributors to the property investment forum point out, if the property has sitting tenants then you will not make the money you might have anticipated. You may see tenants as your bread and butter but sometimes they are more of an expense than an investment.

Julie-Ann Amos is an international professional freelance writer/author and consultant, writing for www.singingpig.co.uk. She recommends their property investment forum at http://www.singingpig.co.uk/articles.aspx#propertyInvestment. For more information on her writing services visit www.exquisitewriting.com

Real Estate Customer Relationship Management - Ways for Agents to Increase Their Business

In 2005, The National Association of Realtors reported that its membership increased by 13 percent over the previous year, reaching 1.2 million. With this many people trying to get a share of the pie, Realtors need to find ways to differentiate themselves and stay ahead of the competition. Customer Relationship Management (CRM) can help them do exactly that, and even more.

CRM comes from the observation that developing good relationships with your customers helps you deliver superior service to your clients, thereby helping your business thrive. Developing a CRM-focused business is not especially hard. It starts with basic guiding rules.

In the marketing lingo, the many ways a business interacts with its clients are called points of contact. By developing the quantity and the quality of these points of contact, a real estate agent will gain more customers.

Of all the existing points of contact, the Internet should receive special attention. In just 10 years, the Web has become an essential marketing venue for today's agents. According to the NAR, 77 percent of home buyers used the Internet to search for a home in 2005. When people think about buying a home the first place they go is often the Web. It is therefore a good place for agents to capture consumers' attention and gain their confidence.

However, many agents are still missing the point: they now have their own Web sites because they know people are looking for them, but they haven't quite figured out how to use the Web as a good lead generator. Here are ways agents can improve their online points of contact.

The layout of your site is key to retain surfers. It should be flawless, and the navigation should also be easy.

E-mails are another critical point of contact. Many agents provide their e-mail address on their Web sites, but an article in Realty Times reported that one of home buyers' main complaints about Realtors online is that they don't answer their e-mails in a timely manner. Decide now about a reasonable e-mail reply policy for your business. A 24- or 48-hour reply policy is probably what most people expect. You need to state this reply policy on your Web site and stick to it. People will appreciate it.

Another option is to allow people to schedule a tour directly from your Web site. This option is a great way to get people to meet with you.

Most people start looking for homes on the Internet a few months before they actually make a decision. It is therefore important for a real estate agent to keep in touch with future home buyers. A good way to maintain that contact is to send out a monthly newsletter, which would give the latest information about the town or area. It would also provide future home buyers with the latest listings that meet their criteria. An agent who sends out this kind of newsletters will find that many of these people remember this agent when they are ready to buy.

The key with CRM is to regularly evaluate existing points of contact to fine tune them in order to better serve customers. This in turn will ensure that agents have a successful business.

Content provided by 10x Media. Established in 2003, 10x Media provides innovative online marketing tools.It has expanded its online presence through networks such as Inside Real state, Inside Finances and Grab Real Estate, which contain thousands of pages for city and state specific real estate information across the nation.

Advances in Asset Management Software

Asset management software has been around for some time now. The initial versions of asset management software applications were basic in terms of their functionality. The only function they were able to provide was to help create a list of assets with details of their purchase date and manufacturers. Slowly, improved versions of asset management software applications began to be introduced by various software product development companies.

Today asset management software applications have become quite sophisticated. The functionality offered has increased manifold to the extent that these applications have become complete asset management solutions. The present versions of asset management software applications not only help a company manage the purchase and maintenance of assets but also help in the creation of strategies and practices that result in cost reduction and enhanced productivity. They now track assets through the whole lifecycle of an asset, from the purchase until the asset is retired or the lease has ended.

Digital asset management software applications that help manage information technology assets have witnessed huge changes. These can now detect all the computers that are present on a network, verify the licensed copies of software applications installed on these computers and even control the computers on the network remotely. Some of these applications also have the capabilities of providing auto-alerts and notifications which instantly inform the respective department of changes to IT assets on the network. FootPrints Asset Management software for example, is able to run searches and reports to get metrics on current and historical asset information, which is broken down by hardware type, operating system, software manufacturer, among other things.

Given the pace at which technology is changing, it is not surprising that these applications have advanced so much. Even so it is sometimes incredible what these applications are capable of if used to their maximum potential.

Asset Management Software provides detailed information on Asset Management Software, Digital Asset Management Software, Inventory Asset Management Software, Fixed Asset Management Software and more. Asset Management Software is affiliated with Free Project Management Software

Asset management companies' guide

Be it any area or any sphere of life management is the key to success. Management of simple things such as your day-to-day activities etc. might not require much consideration but lot of planning is to be done when it comes to managing assets.

Asset management basically refers to managing money for individuals through stocks, bonds and cash equivalents etc. The asset management system has sprung from maintenance management systems and its aim is to optimize asset use and manage all maintenance efforts involved in making the assets as confidential, accurate and efficient as possible. The principles of asset management apply equally to all physical assets such as infrastructure, property, heritage, plant and equipment.

The strategy of asset management depends on financial aspects of ownership such as calculating the entire cost of ownership, depreciation, licensing, maintenance and insurance. Asset management can be in different spheres. For instance asset management in the field of property is known as property asset management, asset management in IT, in finance or investment asset management and asset management in inventory and physical stock.

Varying with the kind of an asset management strategy a firm or an individual can add value to his business, improve investment performance, manage financial risk exposure and reduce costs to business.

Keeping the incredible significance of asset management in mind, various asset management companies have mushroomed these days. An asset management company is a firm that invests the pooled funds of retail investors in securities in line with the directed investment objectives. By offering more diversification, liquidity and professional management service, an asset management service holds a niche above the individual investors.

A leading name in asset management and investment management services is Lazard. Lazard is known for investment banking with offices in more than 16 countries across the world. Lazard provides multiple services such as advisory services that include mergers and acquisitions, asset management and restructuring to corporations, partnerships, institutions, governments and individuals.

Similarly the Asset Intelligence unit of General Electric's Equipment Services has earned commendable name in providing intelligence based asset management and logistics services for commercial and transportation equipments. Hardcat is a leading asset management solution provider in UK, Australia and USA.

The joint venture between UK's top ranking insurance company Prudential Plc. and India's recognized financial institution, the ICICI Bank Ltd. has resulted in the ICICI Asset Management Company to supplement the Indian investor mutual fund products with different growing needs of investment.

All these proficient companies keep in mind the fact that investment is quite a challenging task that requires tremendous planning and risk. These companies function in a way to produce better risk-adjusted investment returns and present investment solutions to the clients.

Recently the prizes of traded asset management companies have touched the sky primarily due to two reasons- rising stock markets and industry consolidation. A paradigm instance here is that the Legg Mason shares increased by 76% due to the news that it was taking over Citigroup's asset management business.

All in all asset management companies are ideal resources to drive costs out of your business operations, increase profitability and get access to vast information database for making a prudent choice

Mansi gupta recommends that you visit Asset management companies for more information.

Understanding Your Monthly Commercial Property Management Report

Each month your property manager will send you a monthly report. Each company has its own format, using different property management software and internal processes. However, you should receive the following:

1. A one-page summary that highlights key issues about the property, e.g., one tenant is 30 days behind on the rent.
2. Income & expense statement. This should be a short statement showing the base rent, Common Area Maintenance (CAM) charges for each tenant, rent and CAM payments received from each tenant. It also shows maintenance expenses and management fee; so you may quickly determine if each tenant has paid rent or not. This statement itemizes all of the income and expenses which may include:
   • Late fee: when the tenant pays late, he has to pay the rent plus the late fee. The late fee amount is normally stated in the lease. Normally, when the tenant pays late, the property manager has to do extra work to collect it. The amount of work depends on whether the tenant is too busy to mail the rent check, does not have the money or simply does not want to pay. Typically, the property manager is entitled to the late fees as an incentive to collect the rent.
   • Management fee: this fee is usually a percentage of the monthly income from the property that both you and the property manager agreed in the management contract. If you have a very stable property with the same income every month, then the management fee is the same. Otherwise, it varies from month to month.
   • Leasing fee: you typically see this when there is a new tenant or a renewed lease.
   • Security/Fire Protection: your property may have fire & security monitoring services.
   • Electricity: this is most likely for parking or common area lighting.
   • Water: this is for both drinking and irrigation.
   • Disposal: this is for garbage collection paid to the city.
   • HVAC repairs & maintenance: this is the maintenance costs for Heating, Ventilation and Air Conditioning. Usually, there is a service contract for HVAC whereby the maintenance company will inspect the HVAC twice a year: once before the winter and once before the summer. So, you may receive the service bills only twice a year.
   • Garbage dumping: sometimes people dispose their unused furniture, mattress on the property because there is no one around at night. The maintenance crew may have to clean up these things. Normally, you or the property manager will want a picture of the dumping to make sure that it is a legitimate bill.
   • Landscaping: this is often the biggest expense item. Typically, the landscaper signs a one year contract to maintain the landscaping on the property, such as mowing the lawn, trimming the trees/shrubs, and planting flowers. Thus, the monthly payment should be the same for the whole year.
   • Sweeping: the parking lot is usually swept daily, either late in the evening or before the tenants open for business. In the winter, there may be an expense for snow removal.
   • Steam cleaning: the concrete sidewalk is normally steam cleaned once a month. This is done by the same company that handles the sweeping and landscaping.
   • Roof maintenance: the roof of a commercial building is often flat and requires regular maintenance especially during the rainy season. The roofer may charge each time he is called to fix a roof leak. So, this is not something you see on the statement on a regular basis.
   • Supplies: there are various things on the property that have to be replaced periodically: light bulbs, trash bins, sprinklers, etc.
   • Bank charges: sometimes the tenants pay by check with non-sufficient funds. The bank will charge a fee each time the check is bounced.
   • Legal fees: you may see this if the property manager has to evict a tenant.

As a rule of thumb, you should not spend more than 30 minutes to review the management report of a retail property with 10 tenants. If you have to spend much more than that, then your property manager has sent you too much information or not organized the report properly.

The property management company often proposes an annual maintenance budget for the property based on the prior year?s maintenance expenses. Each tenant is then billed a fixed monthly amount, proportional to the size of his unit. Thus, the base rent and CAM charges are the same each month; so, the tenants may expect to pay a consistent amount each month. Annually, between January and March, the property manager reconciles the accounting for the prior year. If the actual expenses exceeded the budget, the tenant will have to pay his share of the difference. In the event, the actual expenses were less than the budget; the tenant will be refunded or credited back the difference.

Do?s and Don?ts

1. Use email for most of your correspondence. This will allow you to have records (date, time) of all issues sent and received between you and the property manager. You may want to set up the mail option such that it automatically will save all out-going mail. In addition, you may want to create an email folder for each property and keep all email messages related to that property in that folder. This allows you to find information quickly.
2. Ask the property manager to email to you the monthly reports. You should save all of the reports on your computer. Time and time again, you will need to look at a report from a previous month. The easier and faster you can access them, the more likely you will do it. Paper reports are much more time consuming to retrieve.
3. Have a copy of the rent roll handy with rent rate, lease start date, lease expiration, and CAM share portion. When you are asked to approve a new lease, check to make sure it does not expire on a year when you have several other leases expiring. This minimizes the risk of high vacancies on your property.

   David V. Tran is the CEO eFunding Inc., a commercial real estate brokerage, loan broker, property management, self-directed IRA investment, TIC and syndication company in San Jose, CA. His website is http://www.efundingcom.com. He may be contacted at (408) 288-5500. eFunding does business in all 50 states. He is selected as Pensco Trust?s (a major self-directed IRA custodian) Preferred Professional. David offers 3 FREE real estate investment seminars:
   

   1. How to invest in commercial real estate for retirement income NOW.
   2. How to maximize cash flow with 1031 tax-deferred exchange.
   3. TIC/Syndication: strategy for small investors and self-directed IRA investors to acquire high-valued properties.
      

   
   Andrew La is an Attorney, CPA, & Real Estate Broker in San Jose. His phone is 408-275-9683.
   
   You are welcome to share this report, unedited and in its entirety, with anyone you like. You may not remove this text. ? 2007 eFunding, Inc.

Real Estate Property Management Software

Property management is made much easier with the specialized help of property management software. It not only gives the virtual image of the whole property, but also gives the errorless calculations and accounting works, the cost factors, the management planning and such other works.

Real estate property management software solutions are helping people across the country to perform real estate property management tasks more efficiently than ever. Real estate property management software alleviates many of the problems that residential property managers face every day. Resident portal, resident pay, and resident works are the usual real estate property management matters that the software can help handle. Also, in order to save more time and money and to ease the work of maintenance, real estate property management software can help a lot of companies in creating customized web sites.

It is the real estate company that decides what they should pay attention to: some companies pay attention to the acquisition and disposition of properties, while others focus on long-range forecasting for invested capital. The real estate property management software gives solutions to all these issues: the customized online and offline data are carefully maintained, updated and processed to facilitate the company management to make decisions and actions. Apart from this, software solutions also provide the two major information workflows unique to the real estate industry. They are:

Asset Valuation: The real estate software solutions help in building the valuation models.

Budgeting & Forecasting: The software simplifies this by organizing and analyzing the data involved.

Property Management Software provides detailed information on Property Management Software, Real Estate Property Management Software, Rental Property Management Software, Property Management Accounting Software and more. Property Management Software is affiliated with Healthcare PM Software.

Complementing the job with Property Management Software

What is property management, a property manager, much less Property Management Software? These terms are fairly self-explanatory and they serve an important function when dealing with rental property and acting as a liaison between a tenant and their landlord.

Before we get into the role and the importance of property management, let's talk a little more about their responsibilities and the roles of a tenant and a landlord. Afterwards you'll understand better where Property Management fits into the whole picture.

The Tenant-Whether they're college students, single residents, or families, various tenants have one purpose in mind; to temporarily rent a home at a reasonable price. Things such as location, price, and quality of the overall home (furnishings, appliances, etc.) will all be taken into consideration. A tenant's responsibility will be to maintain the quality of the landlord's property including furnishings, appliances, as well as the overall interior and exterior of the property while living there. In the event that the landlord's property is damaged, the tenant is held accountable for the damages. This responsibility is almost always covered in an agreement/contract agreed and signed upon the tenant before moving into the landlord's property.

The Landlord-Landlords make profitable earnings from their real-estate, so a continual check on the maintenance on their property will constantly be beneficial. Landlords are responsible for generally updating the furnishings inside the property. Some of these basic essentials include couches, an entertainment system, kitchen appliances, desks and bedding mattresses to name just a few. In a lot of cases, a landlord is physically unable to be an on-site manager of his/her property, usually because they are living out of state or are too busy or overwhelmed to handle the many properties they may own. It is up to the landlord how involved they want to be with corresponding with their tenant. Generally, most landlords will use a mediator to control the business matters with their tenants.

The Importance of Property Management

Property Management serves as that mediator between the tenant and the landlord. Property Management helps both parties in the following ways

Benefiting the Landlord

*Advertises landlord's property to prospective tenants

*Handles all correspondence and assistance with tenants

Benefiting the Tenant

*Fast, local access with on-site management for tenants

*Serves as a neutral party with objective problems of landlord's property.

Property managers have the potential to fulfill a vital role to their clients with the right tools. An important resource such as property management software will help better organize the manager's role as the mediator between the tenant and landlord. With the internet being a popular medium to worldwide users, managers using this software will have the online edge to communicate with their clients at a faster and more efficient pace.

If you are a landlord seeking to take over your own property management affairs, this online software will help you get a jump start on the various duties of property managers. If you are a property manager overwhelmed by your current work, look at your many online software options to help ease your management duties and help you to become a stress-free manager.

Buildium's line of Property Management Software centralizes all the aspects of managing your properties into one simple online software system.