Commercial real estate deals are, in most cases, more complicated than residential real estate transactions. They often involve much larger sums of money, different documentation and research, and they can create much greater liability for both parties.
These unique components often require the assistance of a licensed commercial real estate broker to ensure that a client’s best interests are always kept in mind, whether they’re a buyer or a seller. Let’s take a look at three key elements:
The state offers basic consumer protections for the buyer in most residential real estate deals, but the law takes a much more neutral approach when it comes to commercial transactions. Courts typically assume that both parties in a commercial sale are prepared to thoroughly analyze, understand, and negotiate all aspects of the contract. Therefore, judges are more likely to hold parties to the terms of a sales or lease agreement, absent any blatant fraud or illegality.
Because of its nature, a certain commercial real estate property many not have a local, previous sales comparison. This can make it difficult to assess value when compared to residential properties, which have fairly accurate valuations based on a number of previous, similar sales.
Commercial real estate also has an income component that can add to its value. Typically, both the current and any future income streams are considered when determining valuation and the eventual sales price of a commercial property. But just like with residential real estate, buyers and sellers typically hire a professional appraiser to help set a fair market value.
Commercial real estate transactions often involve intense negotiations. During these efforts, the buyer seeks to determine facts that could impact the value and attempts to gain concessions from the seller to offset any problems that may be found. In addition to looking for physical defects or other tangible factors, any issues that could impact the revenue stream generated by the property are considered.
Buyers of commercial real estate are expected to conduct thorough due diligence. Unlike a residential real estate deal, where one inspector will likely suffice to assess the condition of a house, a commercial buyer may need to hire multiple inspectors and experts to look at a variety of different factors. These efforts could include:
Purchasing a commercial property can be complicated, and if you go into a transaction without the proper assistance, you could be in for more than you bargained for. At Morris Southeast Group, our team of experts has nearly three decades of experience and we are a leading provider of full-service commercial real estate services to clients in South Florida. Wherever you are in the transaction process, chances are that we can help. Give our team a call today at 954-474-1776, reach Ken Morris on his cell at 954.240.4400, or email firstname.lastname@example.org for more information.
When many people consider the role of a property manager, they think about handling maintenance requests and processing rent payments. While these are both critical components of the position, there are many other functions that are required to adequately serve clients. Let’s take a look.
A property manager typically has unique experience in certain markets, and can use this knowledge to set an accurate rental amount. In addition, managers often perform the following services:
One of the most time-consuming aspects of renting a property is marketing the listing, preparing the property, and evaluating prospects. A property manager will have the experience necessary to ensure that you have qualified tenants and the marketing chops to find them. Duties include the following:
o Cleaning it and updating the interior, if necessary
o Maintaining landscaping, if applicable
o MLS listings
o Advertising on paid and free rental websites
o Ads in print publications
Leave the particulars of rent collection to a property manager to avoid directly accepting money from your tenants. A qualified professional will collect the rent, enforce late fees, and track down any outstanding payments.
An effective manager will oversee a comprehensive move-in process that includes an inspection and documentation that tracks any issues related to the condition of the property. In addition, he or she will:
Eviction is a scenario that no one wants to deal with, but a property manager can make it easier. Managers are well versed in legal proceedings and can act on behalf of the property owner in court. They will:
Occasional inspections are needed to ensure that tenants are properly taking care of a property. Spotting issues early can prevent owners from having to spend significant money on renovations. Managers will perform inspections (both inside and outside) on a predetermined schedule to look for any safety hazards, repair needs, lease violations, or code violations, and send the owner periodic documentation about the property’s condition.
It’s important to accurately track all income and expenses involving rental properties. A property manager will provide you with the necessary details to accurately file taxes, among other functions:
An effective manager will have an experienced team of contractors at the ready when repairs are needed. They can:
Similar to the move-in process, a move-out inspection ensures that any damages are identified and deducted from the security deposit. Duties include:
While this is by no means a comprehensive list of property management duties, it should give you a good idea of the role that a quality manager can play in overseeing your property. If you’re interested in partnering with a professional property management company that can offload the stress of dealing with your rental in South Florida, contact Morris Southeast Group today at 954-474-1776 or at email@example.com.