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So you’re thinking about buying a condo?

admin — Mon, 21 Jan 2008 19:40:19 +0000

It may be your first home purchase or your tenth but it’s actually the first time you’ve bought a condo. So what things can you expect living with other people and specifically what can you expect from a condo association.

A condo association is a body of owners or non-owners depending on the state and docs that serve as the responsible party to maintain the condos financial and physical status. There are small condo boards and large. Some wield with great power while others care to enjoy the condo lifestyle. One thing is for certain each has it’s own management style and concerns. For some it’s the budget and monthly condo fees while for others it’s the parking and the dilapidated roof. The key we have found is understanding what the association wants and serving their needs quickly and elegantly.

As a resident you will need to understand that the major decision making of the building goes through the association. The board is an elected position and the democratic selection of its governors is done so by the unit owners. So you have a say in who runs the building or you may choose to be on the board yourself. You will also have a say in the major decisions of the building if you choose to attend board meetings and push to have your ideas implemented. You choose to be as hands on of off as you would like. So expect to have routine meetings where the owners and board members gather to discuss the concerns of the building. Also, accept the fact that you are sharing four walls and common areas such as a parking lot, grounds, pool, amentities, etc with others that may not always have the same opinions as yourself.

So, living in a condo can be a rewarding experience or a challenging one depending on the building, the residents and the condo association. These are all just somethings to take into consideration.

How does one select a property manager from the internet?

admin — Wed, 16 Jan 2008 17:11:25 +0000

Well most people that use the internet will often go to a major search engine to find any relevant information. So they go to Google, Yahoo or MSN to name a few and punch in what they expect to be the correct info. Let’s say you’re looking for a property manager in South Florida, specifically Fort Lauderdale. Well, you’d often type Fort Lauderdale Property Management and then choose from a host of selections. Well, the google selection is one of the most grossly misunderstood and overrated information selectors possible. Quite honestly, in the days prior to the internet there was probably a more clear depiction of whom is a property manager servicing the area you need by searching a phone book than the internet. Nonetheless you shift through the first five selections which take you through Winterfest boat parade and Collier’s management (manages malls and office parks) and Yahoo’s directory which has a few paid listings and then has hundreds of free listings so good luck calling dozens of free listings of which 99% are fake or bogus listings. So how do you get to the real managers who can service your needs? There really is no good answer. You’ve got to sift through the hundreds of listings and call or email dozens of potential companies just to get to what you might think will be of use to you. Wish we had a better answer for you but there really isn’t one. Property management is such a fragmented and as a whole a relatively unlicensed business practice. So do your research and use word of mouth to find the right person for you.

Single Family Home property management stories…

admin — Wed, 16 Jan 2008 16:58:28 +0000

It’s always interesting in dealing with a owner who wants to rent out there single family home. Well, you’re probably saying well what’s the difference between a single family home and a condo or apartment complex or a commercial building. The main difference is the emotional attachment. We often find they have a such a deep connection and concern over who might actually be living in “there” home that it can used as a positive and negative factor. Often they will be helpful and assist in the screening of the tenant which can prove to be useful to the property manager. Then times they may be hesitant or skeptical about allowing anyone to step foot in there home…..So it can be a cat and mouse game at times but it often works out in the end…

NPMA.org as a Resource

admin — Tue, 15 Jan 2008 23:10:09 +0000

This is an incredible resource that we wanted to share that focuses on the macro issues of property management. The information, articles and seminars that they hold are an invaluable resource to any professional in the industry. As a Fort Lauderdale property management company we have been able to grow and learn from such quality information and we hope to see you in Reno for the education seminar.

What type of person do you want as a property manager?

admin — Tue, 15 Jan 2008 22:58:39 +0000

Property management is normally defined as the managerial operations of residential or commercial real estate in a businesslike manner. This is obviously a very straightforward and boring definition of what property management or real estate management as we prefer it to be called. The manager can have a huge impact on the physical appearance of the building, the social dynamics of the property and the financial implications of the units. The right person or company can transform a once dull inoperable and non profitable concrete structure into something extraordinary. Now are getting a little ahead of ourselves in claiming the right property manager is a superhero. Well, yes in the right circumstances. Just last night when our company had to let your tenant in at 11:30 at night because he locked his keys in his car then you might reconsider our importance. So, yes it is critical to find the right manager or management company to handle your property. Most owners or investors spent some time and had a solid reason why the bought the property in the first place. Then to just hand it over to a third party to control can be a scary proposition. So you must do your homework. Look for that individual and yes we say individual because in our experiences with property management companies their will most likely only be one person overseeing any location dependent on its size. So the person who is going to be most hands on with your precious real estate better be the right fit for you. Often larger companies will push out sales people who sell there services then you never hear from that individual again, you must avoid this. Find the person who will dedicate themselves both aesthetically and financially to your asset. This is just the first part on selecting a Fort Lauderdale Property Manager…stay tuned…

Raise your Rents!!!

admin — Tue, 06 Nov 2007 04:35:00 +0000

Property Management in Fort Lauderdale and South Florida can be a difficult proposition. Taxes, bad markets, insurance and hurricanes make things tough for the average real estate owner. That’s why we have recently been working with a number of land owners that have approached us and requested that we take over and raise the rents to cover our management expenses. Well isn’t that just genuis. They can hand over all of the headaches and cover the costs by an increase in the monthly rents then why wouldn’t you do it?

Every Fort Lauderdale property management company should have the phone ringing off the hook. Well, the obvious problem with this premise is that you must still be able to get a renter willing to pay the newfound price. But, this is the perfect market for that. Even though it’s a strong buyer’s market we consistently see those participants that are capable of buying choosing to rent. Why is that? Shouldn’t they all know we are in a real estate recession and now is the time to buy? Shouldn’t they be seeking out a killer deal or pre-foreclosure steal? Well, the only explanation we have found is that the average consumer feels the real estate market is unsteady and it has become more difficult to get a loan. Not to mention everything else has become so much more expensive. Taxes, insurance, gas and groceries are seeing staggering increases while the average consumers pay hasn’t. So, they continue to play it safe and determine that renting is the safe bet. So, property management in Fort Lauderdale will remain strong and will continue to appreciate nicely under our management.

Tax Advantages of Property Management

admin — Sun, 12 Aug 2007 15:09:16 +0000

Tax incentives are extremely important for real estate investors and can often make a huge difference. These deductions can be used to offset your income and can often turn a loss into a profitable venture. So which items can you get tax breaks on? Your basics claims for deductions are your normal financing or interest, property management and operations of the rental property. Including mortgage interest payments, taxes, property insurance, general maintenance, repairs, property management expenses, advertising, and utilities. Subtract these expenses from your gross income when calculating your income taxes. You obviously can not total more expenses than the income you received. Then account for depreciation as buildings naturally decline over time and these paper losses can be deducted regardless of the current market value of the property.

So as a homeowner or investor when calculating your actual ROI or return on investment be sure to include these simple tax advantages. Now that you know that property management is tax deductible the idea of handing the property over to a manager seems a bit more realistic. We manage a number of investor’s properties that needed a Fort Lauderdale property management firm that understands the full financial picture behind real estate.

The Effects of Urban Sprawl

admin — Tue, 07 Aug 2007 12:30:03 +0000

LA was long known as the king of the suburbs but the most recent data shows they aren’t even in the top ten anymore.Most are instead heading east to the San Bernandino area where they account for twelve of the top one hundred fastest growing suburbs. It is simply the cost of homes that are driving the middle class out. A comparable home in the San Bernandino area can cost 30 to 40% less than LA.

Some of the other fastest growing suburbs where areas just outside of Sacramento and Phoenix. Phoenix saw the largest domestic move of any major American area with over a 100,000 more people moving into the area than leaving as they have affordable living and a growing economy.

So what do these changes mean for property management? Well, that’s obvious, more rental property management for all the new complexes being built and most apparent more HOA management. The largest builder’s in the industry are aware that these are the most popular growth areas and of course are building here. And these builder’s don’t put up a few homes. Massive PUD’s planned urban developments with thousands of track homes are being built. Home Owner’s Associations will be formed and will require a property manager.

The next most obvious thing is the shift south. People love warm weather and of the top 100 Southern California, South Texas, Arizona and South Florida all ranked high.

How do HOA’s use Property Management?

admin — Mon, 06 Aug 2007 22:14:10 +0000

HOA’s or Home Owner’s Associations are organizations that work towards the governance of a common developments ruling. Basically, HOA’s are thought of as larger planned urban developments that have hundreds if not thousands of homes that are all governed under a set of rules. These rules may include the color of your house, the height of trees, hedges, garbage rules, etc…These rules are generally put in place with the best of intentions but as we all know it is difficult to live in harmony with everyone all the time.

So, quite often a property manager is brought in to do the rule enforcement and financial management for the association. In South Florida for instance, a Fort Lauderdale property management firm may manage a HOA with a thousand homes and manage a similar HOA with ten townhomes. It all really depends on the documents that were filed when the builders created the building.

So whether you have a large or small HOA you will still require financial management, administrative duties, maintenance issues and capital improvement problems. All of these will be managed by your new property manager.

What is commercial property management?

admin — Mon, 06 Aug 2007 21:56:29 +0000

This quite simply includes anything from the five unit apartment complex, to your local supermarket and the football stadium downtown. The large real estate investment firms or REITS tend to either manage there own properties or work with one or two regional property managers to oversee there operations.

Commercial property management can be tough work as you are dealing with business clients and rentors that need immediate results. When the pizza place has a leak they need a plumber now. You also have a very different lease structure to negotiate with tenants and attorneys are normally involved to clarify all details. Not too mention the City has to enforce different building and maintenance code issues that apply to commercial buildings that don’t apply to single family homes.

So, while it is a much more complicated task it is also a much more rewarding and challenging opportunity.