Commercial Property Agents – What Are Your Property Management Fees Today?

A real estate agent that is to be managing a commercial or retail property will need to cover operational costs and make a profit. That is where the fees charged are so important. It might sound a bit crazy, but some agencies never make a profit from commercial or retail property management; that is because they do not understand what they are really to be doing and do not set up the systems to support the special skill sets. Commercial or retail property management is quite special; the simple rules of residential real estate do not apply.

Many real estate agencies can also regard the property management service in the office as the ‘poor cousin’ to the sales and leasing division. Whilst that concept may work in residential property management, the same does not apply in and with commercial or retail property. Commercial and retail property management is just far too specialised and complex to be a ‘poor cousin’ to anything.

If you run a real estate agency and want to start a commercial property management division, then here are the basic rules:

Employ good people for the commercial and retail services you are to provide. They need intelligence and drive to specialise.

Gather the commercial and retail market knowledge and trends so you understand what is required to build your division and business.

Make sure that everyone that you employ on commercial or retail property really understands what they are doing, and get them trained to pick up on any shortcomings.

Charge reasonable fees that are reflecting the complex and special tasks of the property management job
So what are the fees for managing commercial or retail property today? To answer the question you should first find out what other agents are charging locally for the management services. You will soon see those that are ‘cheap’ with their fees; the reality is that they do not take the tasks of the job seriously. Low fees do not apply if you are a serious and professional commercial agent. In saying that, it is necessary to supply excellent services to the clients that you serve to justify your fee.

Here are some fees to consider in providing your property management services to commercial and retail property:

A base management fee should be set for managing the property on a day to day basis. That will include rent collection, income and expenditure management, tenant and lease management, and maintenance management. You should also include an allocation of time for reporting to and communicating with all the tenants and the landlord, given the demands and operation of the property.

A fee should be set for negotiating the various types of lease rent reviews when and if they fall due. Given that the rent reviews are of different types, it pays to set fees for each type. Market rent reviews are the most time consuming and should attract the higher fees.

A fee for negotiating new leases and renewals of leases with sitting tenants should be set. It is common to negotiate leases with your sitting tenants.

New leases with businesses seeking to occupy your vacant space in the property will also attract its own fee. This will be higher than the fees that you set with your sitting tenants, as more work is required.

Set an hourly fee for special tasks that are outside of normal management duties. This can be out of hour’s property attendance, court attendance, project management, and business planning or budgeting of the property once per year.
As a general observation, retail property is far more demanding on the property manager’s time given the nature of the tenancy mix and the operations of the property. Take care when setting a fee for a retail property management and give due regard to your office and staff costs.

So how much profit should you make in running your commercial or retail property management division? The answer is about 30% to 40% on top of your gross operational costs of running the division. When you know this number, setting the other fees is not a problem.

There may be other fees for you to consider in addition to the main ones above, so be aware of what the property needs in daily management, and what the local property market is doing. Do not discount your property management fees to win the business; a quality service requires a fair and reasonable fee.

Why You Should Seek Out A Real Estate Law Group

The law in general can be needlessly complex because of its wording and terminology. Furthermore, real estate law is even more complex, largely because people are so unfamiliar with it and it is usually impeded by bureaucratic red tape and a number of civil zoning codes. In order to fully understand estate law, consulting a standard legal firm might not be enough. Instead, you should look into a law firm or group that specializes in estate law in order to make sure your legal issues are fully resolved.

What Do These Firms Specialize In?

Firms that specialize in real estate law are well versed in a number of fields and can help you better understand your real estate situation. Their primary services include the following:

Explaining the legal meaning of all documents and how they can impact all involved parties.

Assisting you in negotiating contracts and drafting contracts so you, and any other parties involved, don’t encounter any difficulties with real estate transactions.
Helping buyers and sellers minimize damages when transactions unfortunately fall through.

Handling a variety of disputes, including escrow, mortgages, foreclosures, and a number of other issues pertaining to real estate law.

Advising buyers and sellers in order to make sure a transaction goes smoothly.

Making sure buyers and sellers understand the statute of regulations in real estate law, such as FIRPTA, RESPA, and 1031 Exchanges, and also how each regulation affects them.

Informing buyers and sellers of the legal impact of issues regarding title, property condition, zoning permits, and their relation to real estate property law.

When You Should Enlist The Help Of Firms

In some instances, firms aren’t needed in transactions. However, because of the complexity of the field, there are plenty of unfortunate circumstances in which it would benefit you financially to consider the help of a law firm. These circumstances include the following:

When you are in the process of foreclosure: These firms understand what a difficult process foreclosure can be for an individual or a family, and they will work as hard as they can in order to ensure that you are treated properly and fairly.

Buying or selling a home: This one is fairly straight forward, as lawyers will make sure the proceedings of acquiring a home will go smoothly for you and that all legal codes and standards are abided by. Too often do people get duped and end up buying a home that has numerous violations that they become responsible for. So by trusting capable lawyers, you can avoid this!

When dealing with estate taxes: Firms will easily be able to determine what you owe in regards to yearly real estate tax, depending on the codes and laws of your county or state. This is a particularly useful service for those who own multiple properties in the same area or state.

So, if you feel like you are overwhelmed by real estate proceedings, contact your local law firm and they will make sure you are properly taken care of!

Considerable Factors Involved in Product Creation & Marketing

The niche you have chosen should allow creation of more than one product or service. With the technological advancements in the hosting industry, from automated control panels and scripts that simplify creation of accounts, to complete turnkey solutions; there is no need to worry about spending time on the real products sold to the customer. The main ones are keyword selection, sales copy principles, graphics, affiliate programs, product creation, online payment processing, auto responders, and search engine optimization.

Once you’ve earned money from this type of information product business, you can invest in the creation of your own products if you want, or start offering more informational products that allow you to sell your knowledge. But the creation and production costs of a similar big ticket in sequence product, although higher, are still pretty low. A key by-product of this process will be the creation of 3-D, Computer Assisted Design art.

The Association for Financial Professionals permits the following activities for repatriating funds: Research and Development activities, advertising and marketing programs, hiring and training new recruits, acquiring patent and other rights to intangible property, improving transportation, funding capital investments with the purpose of job creation and job retention & funding product responsibility or environmental claims.

It prohibits certain activities like: Tax payments, Payment of executive recompense, Payment of dividends, Redemption of stocks, Debt investments and Portfolio investments. Therefore, before repatriating the money, you must consider whether it is worth or not.

Checklist on what artist and product development necessitate includes: Exceptional vocals, musicianship and/or songwriting skills, Continued education and enhancement of musical skills, Quality equipment, Performance ability, Image creation and maintenance, Plan of action, goal setting, excellent promotion materials including photographs, press releases and artwork, Business management skills, Marketing, Publicity and Promotion knowledge, Online and Offline Professional management, Basic knowledge of recording, producing, engineering, and mastering, Basic knowledge of manufacturing, distribution, and sales online, brick and mortar and air-play, Good choices in members, staff and advisors, Physical and mental preparedness, Basic knowledge of finances, accounting Law and legal issues etc.

The goals for doing so are for the product owner to: Communicate the whole, Determine and communicate when releases are needed, Determine what functionality is sufficient for each release & focus on business value derived from the releases. The delivery team on the other hand will see the whole, learn about the steps to realize the vision, learn the business priorities, provide technical input to the roadmap and provide estimates for the projected features. The salesperson must lead the prospect through the various decision criteria needed in order to secure a sale. Whether your idea is the development of a product, launch of a service business, or even the creation of an event or program for a non-profit, creativity is the root of all entrepreneurial efforts starting with the vision itself.

People quickly learn to spend their time on marketing and product creation, rather than repetitive tasks. Apart from empowering companies and individuals, there should be a particular focus on identifying labor intensive businesses that have the potential to make a significant and positive impact on employment creation as well as those businesses that have a product or service offering for export markets with the final objective of booming local economies.