When you work as a commercial or commercial real estate manager, you will often meet the need to report to the owners you represent and act. Each landlord will have unique plans for the property given their investment profile and detention strategy.
As a general rule, a landlord will have the following alternatives and the focus points of their property:
Acquire the property for a short-term outfit before the redevelopment of the property
Buy the property for the long-term portfolio diversity
Change the use of property and rental rental to more optimal use
Improve the performance of the property and return the property to the market for sale
Fast capital gain in a holding and resale in the short term
Strategic advantage given the other properties that the owner can possess in the region
Strategically spread the risk of portfolio ownership in a variety of properties to be held at the same time
Given all of these factors above, the reporting procedures adopted by the ownership manager each month should specifically deal with the objectives and the development of the owner. If a property manager manages many properties at the same time, this report process can become complex and painful. However, it is the case where the control of successful property management comes from a dedicated property performance plan and a reporting process.
Each month, the owner and the real estate manager should examine and resolve the elements that are then reported and compiled in a complex property report.
Here are some ideas considers the format of a report that can be compiled for the owners you act for:
The result of the property is the most obvious and immediate subject of importance for the owner. There are two types of revenue to be monitored; They are net income and gross income. The difference between the two will be the expense activity in the property. This is where a real estate budget supervises expenses is valuable for the current property performance plan for the owner.
The expenses of the property are connected to the function and the operational costs of the property throughout the year. There are peaks and hollows that affect spending models. Larger expenditure accounts can have a major impact on owner’s cash flow throughout the year. Look for the existence of these accounts and time the necessary payment so that the disturbance of cash flows is minimized. An example of these accounts are the counseling rates, water supply rates and land tax. They are all major accounts that will have a monthly impact on the owner’s disposable income.
Maintenance in the property should only be undertaken when approved in accordance with the speed of the budget. Unexpected maintenance may be a problem and strategies should be implemented if and, where appropriate, when emergency elements occur.
The rental documentation in the property is linked to the activities of the rental mix. It is important to note that lease documentation should be accurately managed for all tenants of the occupation. All critical dates in leases must be observed and activated as needed. Your report should note what is happening in the lease documentation and the rental mixture.
The vacancy factors in the property will change from time to time. It is important to note that changes should be predictable and expected. It is up to the owner of the property and the rental manager to ensure that vacancy factors do not become a drag on the gross cash flow and the net income of the property.
These are some of the main factors that should be treated in the monthly reports of the owners you act. The explanations and written documentation will allow you to maintain good recordings with each monthly report. It is impossible for reports to be called frequently and historically as the property changes throughout the year.