Buying is easy…well, sort of. However, operating and managing is the real chore and involves the heavy lifting for the creation of value.
The PM Swamp Needs Draining
Commercial real estate property management is a swamp. The environment does indeed contain some alligators and snakes.
Owners are Poor Property Managers
Let me go ahead and say it, “Self management is a bad idea.” Now that I have that out of my system we can discuss why owner proximity to the investment property is typically not a good idea.
There is a holy trinity to commercial property management and these three elements form the nucleus of management in order to create the cycle of value appreciation.:
- Owner’s Financial Objectives.
- Property Management Value Equation.
- Capital Improvement Reality.
These are the irreducible criteria for commercial property management arrangement and they are the nucleus to getting the job done right. Don’t even think about trying to do 2 out of the 3. We have to bat a thousand to be successful. If I may, I would like to address each of the three elements of the holy trinity of property management.
Understanding the property management is the most powerful means of moving a property effectively from one ownership situation to another. Local networking is paramount but so also is distance marketing.
1. Knowledge of the Leasing Game.
2. Property Management Software.
2. Secure OnLine Owner Reporting.
3. Maintenance to Die For.
4. Communication, Communication, Communication.
5. Marketing Alerts and Event Management/u>.