Property and Asset Management

  • Property Management
    • The role of the property manager is to manage the property with the objective of securing the highest net return for the property owner over the property’s useful life
  • Management Agreement
    • Establishes the relationship between the owner and the manager. The agreement should address the powers of the manager relating to
      • Rent setting
      • Lease signings
      • Rent collections
      • Power to spend money on behalf of the property
      • Authority to hire, fire, and supervise personnel
    • The agreement should specify the compensation to the manager
      • Percentage of gross income
      • Fixed amount
      • Fee schedule for certain tasks
      • Hourly rate
  • Functions of a Property Manager
    • Administration
    • Marketing and advertising
      • Signs on the property
      • Neighborhood flyers
      • Bulletin boards
      • Internet sites
      • Listing with leasing companies
      • Newspaper advertisements
      • “Open house” days or weekends
    • Tenant selection
      • Compliance with fair housing laws
      • Put more emphasis on tenant’s prior, instead of current, landlord
    • Lease negotiations
      • Amount of security deposit
      • Day rent is due
      • Day rent is considered late
      • Nature of tenancy (stated period, period-to-period, etc.)
      • Is the lease renewable?
      • Tenant maintenance responsibilities
      • How many people may occupy the premises?
      • Who is responsible for insurance?
      • Assigning and subletting
      • Local disclosure laws
      • Are pets allowed?
    • Move-in inspections
      • Documentation of condition of property at start of lease
      • Critical for claims against security deposit
    • Property maintenance
      • Maintenance to conserve the property
      • Rehabilitation and renovation to compete in changing market
    • Rent Collection
      • Handle eviction process if rent is unpaid
    • Move-out Inspection
      • Will go smoothly if there is a well documented move-in inspection
    • Security deposit returns
      • Compliance with local laws
    • See Close-Up “Green Acres Shopping Center – A Property Management Success Story”
  • The Role & Functions of an Asset Managers
    • The functions of an asset manager include:
      • Facilities management
      • Acquisition of additional space for the firm’s operations
      • Financing decisions relating to needed space
      • Disposition of corporate real estate assets