subject: Docklands Property Management | What Services Do You Require? [print this page] Docklands offers genuinely luxurious waterside living in the heart of London. The area caters to the true cosmopolitan, who faces a highly demanding schedule and busy lifestyle. Accommodations range from modest apartments to the more extravagant, for either private or corporate lettings. Youll find that a number of reputable companies provide services should you be in the market to buy, sell, or rent a property in the Docklands area.
Property decisions are often made based on either personal experience or referrals we get from friends, associates, or real estate consultants. Marketing plays a tremendous role to create or enhance images we have of the lifestyle associated with certain properties. Media such as newspapers, magazines, billboards help create desire for high-end brands.
Sophisticated and easy to use web sites enhanced with comprehensive databases make it easy for potential buyers or renters to find property matches. Appropriately targeted advertising along with special promotions can easily help you match potential buyers with property incentives.
Whether looking at property to occupy or part of your investment strategy, its important to know the role of a Property Management Company and how they can be of service to youwhether looking to buy, see, or rent. By simply definition, property management is the administration of rental or other property that is not owner occupied for a fee.
The management of real estate in the new millennium is both complex and specialized, as all management companies are not created equal. Just as there are different types of properties, (i.e., apartments, retail) there are different types of management companies that specialize in one or more categories. The management of larger apartment complexes requires onsite managers, maintenance personnel, payroll, etc., along with the ability to quickly fill vacancies with the proper tenants.
Property management services can vary and are dependent on the clients objectives and needs. The three basic goals for a management company are:
Increase the net operating income (NOI,) through rent increases and/or operating expense reductions.
Increase the value of the property.
Protect the value of the property with insurance, inspections, and maintenance.
Most management firms provide services on a third party basis and the written management agreement delineates the services and responsibilities agreed upon. Basic services provided for Docklands property and in most standardized management agreements include the following:
Property management tasks
Regular accounting and reporting
Leasing services
Property maintenance and repair
Vendor, equipment, services, and supplies evaluation
Coordination of tax payments
Provisioning of utilities and insurance
Payment to vendors, suppliers, utilities, mortgages, etc.
Property remodeling
Rent rate setting, rent collection, rent analysis
Tenant relations with 24 hour answering service
Supervision of employees assigned to property
Investment management tasks
Property acquisition and disposition
Development and rehabilitation feasibility
Financing or refinancing of the property
Property tax appeals if the value is less than assessment
Income tax accounting
Management Plan for the property that includes an analysis on the region, neighborhood, operations, financial status, etc. and recommendations
Consulting, such as repositioning the property or changing of use and obtaining city approvals
Supervision of large capital improvement projects
When looking to assess a management company, you might wish to keep a few of these questions in mind for your evaluation of their capabilities.
What is the reputation of the company in the market place and industry?
Length of time in business overall and within the given geography?
What are the affiliations and designations of the firm and property manager, especially relative to the market they are serving?
What is the longevity of the staff and turnover rate?
What are the specializations of the firm, (i.e., small apartment buildings and strip centers, large shopping centers, mobile home parks)?
Does the firm have all appropriate real estate licensing in place?
How technically savvy is the organization relative to computerization, online listings, reporting, customer databases, etc.
What is the strength of the organization from a marketing perspective? Are they well known and well respected in the community?
The best way to begin the selection process is to call prospective property management companies and ask if they are interested in managing your property. Most management companies will provide a free written proposal containing a sample management agreement that will describe the services to be provided, spending limits, reports and fees, etc.
If the management agreement seems reasonable, your next step should be a visit to the management company offices. During your visit observe whether the offices are neat and orderly. Meet the property manager, appropriate sales consultants, and accounting personnel who would be assigned to your property. The management company should provide a variety of references, which should be checked out, as well as the company web site. Ask to visit similar properties to yours that the firm manages.
Last and certainly not least, understand what the management fee structure is. Fees are normally charged based on a percentage of income collection with a minimum monthly base fee. Fees are negotiated on a per property basis and depend on many factors including condition, location and size of the property, etc. Leasing and other auxiliary service fees are separate and in addition to the management fee.
