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11/10/2008 13:05:33
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Subject: Need Help Please
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Elizabeth Scott
Joined: 10/03/2008 08:08:12
Messages: 206
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Question from an IREM member:
"Just completed a new commercial building, and owners want us to be their property manager for the building. We can handle the maintance portion, but we need advice on fee's, commissions, mark-up etc. If anyone can point us in the right direction regarding this, it would be highly appreciated."
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11/10/2008 13:29:55
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Subject: Re:Need Help Please
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Jeffrey Laass
Joined: 09/29/2008 08:49:58
Messages: 73
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You would be well served to hire someone with experience and knowledge in property management so your company can meet the expectations of the owner and tenants.
Jeff
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11/18/2008 17:31:09
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Subject: Re:Need Help Please
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Jesse Holland
Joined: 10/28/2008 19:54:22
Messages: 38
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I agree - refer them to someone who knows what they are doing - you will come out ahead
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11/19/2008 21:14:55
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Subject: Re:Need Help Please
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Lori Burger
Joined: 09/15/2008 19:57:58
Messages: 75
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The comments posted all make sense and I 100% agree. If you try and do yourself you might ultimately lose the account for failing to address basic management principles. Post a job posting on www.irem.org you'll get some great candidates.
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11/27/2008 19:57:58
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Subject: Re:Need Help Please
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Donald Cheng
Joined: 11/27/2008 19:45:16
Messages: 16
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Hi Elizabeth,
Property Management consists of two parts. One part is the income management side (ie leases, renting, collections) and the other is the expenses management side (payroll, taxes, tax incentives, maintenance costs, capital improvements). Each portion needs specialization and a different set of skills. You can outsource portions which you are not familiar with, much like a GC subcontracting specialties. Also, the type of property also poses challenges in skills and credentials. ie in NYC you need fire safety directors in office buildings but not for residential. You will also need specialized management software as well.
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01/26/2009 16:03:41
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Subject: Re:Need Help Please
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Allan Watkins
Joined: 01/05/2009 12:51:20
Messages: 35
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As a rule, a 20% service or administration fee is acceptable. Any product or service should have an attached service fee unless their is a lease stipulation that states otherwise.
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03/22/2009 11:33:09
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Subject: Re:Need Help Please
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Georgia Peart
Joined: 03/22/2009 11:01:29
Messages: 3
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Hi Donald Cheng,
Although I’m not responding to Elizabeth’s question, your response caught my eye. I did not realize that Property Management was segmented further into two parts as you’ve pointed out. The second part which I’ve concluded is Operations which is of interest to me.
I’ve been a CPM Candidate for less than a year now. My background is in residential homeownership development and construction finance with the NJ housing finance authority. From what I’ve been experiencing, it seems quite a challenge to transition to Property Management despite my taking the designation classes. I would like your opinion on how someone in my position could transition to this area to eventually become a Regional or Asset Manager.
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03/23/2009 13:04:59
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Subject: Re:Need Help Please
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John McDuffie
Joined: 03/23/2009 12:08:15
Messages: 17
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Donald Cheng has a pretty good outlook on it. Allan on the other hand; where do you get 20%? I'm moving there.
20% would leave the owners with only 2 to 3% after taxes, mortgage payments, staff, maintenance, unforseen and misc items.
But again, i'm based in Georgia so maybe we have a lower rate. It mostly depends on projected income potential really and what the property can afford or what the owners are willing to part with.
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