Property Management- The Value of a Professional Property Acquisition and Management Team
Investment Property Acquisition and Property management, sounds easy right? Just make the decision to invest, locate the asset of your choice that seems to fit your style, and your pocket book, and the cash just starts flowing in! That sounds like the perfect plan, but too often than not, it doesn’t work out that way!
Investors tend to look at property’s inherent value now, based on what the current owner and management are doing for the property; however, the key we have found to successful acquisitions and ownership are to look at what the property is going to do post-acquisition. Truly, market value is only established the when the property is acquired. What you purchase it at is what is value is; however, what you do to make improvements and how you manage it moving forward will set the value for you in the future. Try not to get caught up buying for the past value, because it is just that, past value.
Our Acquisition Team not only provides investors with the best access to properties on the market, or ones we know are coming soon, we complete all due diligence for you. Our team starts by completing a thorough asset analysis and budget and a needs assessment on improvements that should be made, both operating and capital, in order to add value and increase total revenue. From there, we negotiate the purchase. After a successful negotiation, our Management Team joins forces with the Acquisition Team and gets to work on inspections, lease reviews, project bids and transition management with the current owner and tenants. Our team creates a seamless process from the time a deal is made, up to closing and then transitions into the next phase, asset and property management.
What exactly does that mean for you as an owner when you choose to property management services after the sale? 1. Management Duties 2. Maintenance 3. Leasing 4. Tenant Management 5. Accounting. Let’s take a look at the day in the life of property management!
Maintenance is the number one reason people continue their tenancy, and the number one reason people decide to move. Responding to tenant requests in a timely manner, especially emergencies, (and they happen at the most inconvenient times) is imperative! Hiring a management company ensures you have 24/7 coverage. This ensures you won’t be pulled away from your family events, work and play. Management firms typically have employees on staff that will complete your maintenance when it is needed, and at a fraction of the cost of hiring out a vendor every time you need a light bulb changed, or the tub unclogged.
Coordinating all marketing, rental applications, showings and move-ins require experienced skills in time-management, communication and sales. After all, this is how we first get a tenant to walk through our doors and then decide to lease from us. Having a professional who is knowledgeable in marketing, showings, sales and follow-through with the leasing and move-in process is essential to the bottom line of your property. Without tenants, where would we be? Leasing is not as simple as the world leads us to believe!
Marketing strategy is the beginning of your property’s success. Branding creates a unique image of your property, and the lifestyle that your residents will live in. This is critical to capturing your target audience. There are a lot of people vying for these tenants, and your branding and marketing must resonate with them. Property managers should be developing, and maintaining your property brand, and translating it to everyone they speak to and meet with. Doing so will get us to the next step which is applying and then signing a new lease with your property.
So, what do we do once we have the tenant sign a lease, get the keys and move into our property? This is where tenant management comes into play. Included in this category are rent collection, notices, maintenance coordination, daily communication and ensuring vendors are completing work timely and correctly. Other tasks in this area include monthly pest inspections, and possibly evictions.
There are also many requirements of the law that owners must meet to comply with the lease agreement between the owner and the tenant. Knowing that a professional manager is caring for your property will give you the peace of mind that your asset is being protected and well cared for. The end result will be a better maintained and occupied property…a.k.a. money in your pocket!
Last, but certainly not least, a professional team of management staff will also meticulously prepare your property’s financial statements. They will keep track of all income and expenses of the property, keep an accurate rent roll and create and adhere to budgets set by and agreed upon by the owner. Accurate and detailed accounting records are key and ensure that the owner can depreciate and receive the deductions they are entitled to.
Professional property managers have dedicated their careers to understanding the rental industry. They understand the laws. They have the best interests of the owner(s) at stake. When the right firm is hired to manage your asset, they literally pay for themselves. Equipped with this information, now is the time to decide if you want to hire a property management team for your asset.
Should you decide on hiring a professional team, we would love the opportunity to show you what we have to offer. We are very fortunate to have a wonderful management team here at J & M Property Management with over 25 years of property management experience; decorated with designations from the Institute of Real Estate Management (IREM), Community Association Institute (CAI), as well as being a professionally licensed real estate brokers in Iowa, Nebraska, and South Dakota. We are here to serve all your multi-family and commercial property management needs. Please contact Brandi Jorgensen at 605.232.1813 or at email@example.com to discuss your unique needs. We look forward to serving you and exceeding your expectations!
“Brandi’s team at J&M Real Estate is the absolute best that I’ve encountered in property management. We run a diverse real estate investment company, and one of our assets was struggling under current management. Brandi’s team took over and quickly turned this asset into our highest performing in a matter of months. We are now actively engaged in acquiring more assets in the markets Brandi operates in as we know our numbers returns will be there under Brandi’s leadership.“~Caleb Fritzler, CAM Property Holdings, LLC.