Blue Skies Management Property and Top-Homes Property Management - Essay Example

Introduction Property management is a specific occupation of general management. Property management process uses specialized management knowledge in taking care of property, its environment and the facilities and cultivating a good relationship between the tenants and the landlord and also among the tenants themselves. For the property portfolio and also the individual property to give their maximum value, for both the tenants and the landlord, there should be proper and professional property management. (Gary & Kempner, 1999) Background information This paper will examine the current management of property portfolio of a company named Blue Skies Management property and Top-Homes Property Management. Currently the Blue Skies property management is management some apartments in Highbury, however, the company lacks good management which has resulted into tenants problems and has led to poor performance of the property in terms of revenue being collected. In order to correct that a new company by the name Top-Homes Property Management has been engaged to provide the services that Blue-Skies property management were offering. Top-Homes Property Management Company is a local based property management located in Highbury town dealing in management of real estate properties especially apartments. The company has 10 staffs which includes 4 professionals in property management. The type of properties The types of the property that the company will be dealing are apartments and which are private property of the owners. The types of the apartment will vary according to the number of bedrooms the have. For example we have 1 bed, 2 bed and also 3 bed these apartments can accommodate 2, 4 and 6 occupants respectively. Every apartment is separately furnished and has different views depending on their locations. The apartments are located in Highbury and they consist of 10 apartments building in different compounds but along the same road. The type of tenants The apartments are available for leasing or renting. Thus private tenants can undertake one of the methods and either rent or lease the property. Leasing can be up to one year. It is important that the tenants understands their contracts of leasing. (Gary & Kempner, 1999) Current management arrangement in terms of service charges A property management company normally enters into a contract with its tenants and this contract stipulates various aspects of tenancy. Currently the company that is management those apartments charges a specific service fee seems to be too high for the tenants. The money collected is supposed to provide for the maintenance of the buildings and future painting and or re-carpeting of the apartments. The current management has undertaken to use an agent to carry out the management of the property. Tenants are supposed to pay their rent and service charge to the agent who in turn takes the money to the Blue skies property management company. The company subsequently deducts their commissions and other expenses and deposits the remaining net amount to the owner's account. Management problems The current management problems that the property management company is undergoing are both from the tenants and also from the management. Poor quality of services The agent that a company engages highly affects the quality of service delivery that will be delivered. To quality of the agent is very vital will encourage tenants to continue staying in those apartments or not. It has been observed that the current agents overcharges the tenants in terms of amount of service charges paid and yet offer sub-standard services. For example, the gardens are no well kept yet the service charge is always paid on time. It is important that the property management company should realize that the tenants are the most important customers and a partner. Thus, customers' problems need to be understood and solved by the property managers. (Gary & Kempner, 1999) Insensitive to tenants Being sensitive to the complaints of the tenants is also important as it is an indicator of satisfaction. However other property managers do not undertake such measures and instead in the face competition, tend to reduce the expenses that spend on the property in order to increase the profit forgetting the possibility of the tenants vacating their apartments. The property manager has to undertake the day- to day running of the property to ensure that they is smooth operations all times. To achieve this, there should careful attention given towards the tenants and the landlord requirements. However, the previous property management company has failed in responding timely to the complaints from the tenants. This has resulted in frequent frictions between the management and the tenants. (Gary & Kempner, 1999) Lack of professionalism The success of property management function is due to continuous liaison with the property owners through the stipulation of accurate and timely advice concerning the property being management. Property management company should offer professional lease management, have efficient control of service payments and recoveries so that to attain sound financial performance of the investments of the client. Nevertheless, Blue Skies property management have come up with poor lease contract because their have failed to interpret the landlord/tenants laws and formulate a contract that is suitable to the owners of the properties. (Gary & Kempner, 1999) Poor selection of tenants Consumer contentment is the objective of all property managers. Property managers of profit making properties judge the occupancy rate as one of the best gauge of measuring consumer/tenant satisfaction. Thus, it is important that in this competitive world, property managers give quality services at competitive prices to get more customers/ tenants or to retain them. It is also important the a property company has a mechanism of assessing suitable tenants to ensure that only suitable tenants who have good credit worthiness and good public relations rent the premises. However, this property company has failed in providing suitable tenants and the results are high turnover rate of tenants and at time vacant rooms that are not rented meaning a disruption in returns to the property owners. The viability of our company providing a good management service Taking details Excellent property management requires that the company take in details concerning the property to be managed. It is important that any maintenance problem is spotted earlier and dealt with before developing into big problems to the tenants. A good property management company should be able to forecast problems before they actual arise. The property managers' need to carry out regularly maintenance schedules helps to keep away maintenance problems. Such routine maintenance activities can be cleaning out the gutters. It is important that such works should be allocated to specialists e.g. repairmen who can adequately carry out repairs and any improvements to the building. This will developed and enhance good relationship and trust between the tenants and the company. A pictures showing one of the properties to be managed by the company The apartments from outside view the kitchen The living room the washroom Our services Top-Homes Property Management Company is a top class company that gives owners of property peace of mind about their investments knowing that the property are in good professional hands having young and sharp mind personnel, the company have a high reputation for offering quality property management services. The company provides solutions for property management both property owners and the tenants. This is achieved through effective management of properties, accordingly freeing the owner from management problems and at the same time providing professional property management services. Some of our comprehensive services provided are discussed below; Marketing your property In the current competitive market it is important that your property is well marketed so that it attracts best tenants. Top-Homes Property Management Company will ensure that your property is well marketed and rented to the best suitable tenants. To this end we have considerable investment allocated for marketing and also we have marketing strategies that are unrivalled within our location. We shall advertise your property through different Medias such as newspaper, local companies, current and previous tenants, local fax lines and even post adverts on our websites for wider reach. Top-Homes Property Management Company website is among the most all-inclusive rental property resources in the town. This advertising on the website provides the locals and potential international tenant's access to the photos of the property and complete details about your property from any part of the world any time. (Gary & Kempner, 1999) Tenant selection and retention Getting right tenants is very important as it ensure that no management problems occur. The company will go an extra mile in ensuring that you get the right tenants. We pay close interest to those who intend to occupy your property to ensure that they are the right people. Our company has skills and tools to correctly screen and select tenants who are suitable for your property. We shall only select tenants who have good credit worth and also can coexist well with other tenants and neighbours. Top-Homes Property Management Company will be available all days of the week to assist with tenants requirements. This will definitely lead to satisfied tenants who keep staying in the property and repeated business making sure that your income from your rental property remains consistent. (Gary, & Kempner, 1999) Maintenance Keeping your property well maintained is important to use. Good property management requires that the management should have a hands-on proximity. This is because property management requires time. It for example, needs looking after the yard; plumbing as just some of regularly duties that needs to perform. We shall address the tenant's problems and concerns on time and in a courteous manner. We take pride in our services and work towards providing perfect satisfaction for both tenants and the owners. Carrying out on time preventive maintenance to your property is a major concern and a priority to our company. We realize that this is the best way of caring for your investment and also attracting suitable tenants. The company property managers will schedule and oversee constant maintenance and repairs on your property and offer a 24 hour service available in case of any emergencies. To ensure that good work is done we only engage qualified personnel who are experienced to carry out the repairs and maintenances after of course you have approved. (Gary, & Kempner, 1999) Rental documents We realize that property management requires understanding laws government the landlord/tenant relations. As a company are knowledgeable in these laws we shall provide you with good protection through suitable lease agreements, tenant's rental applications, rental deposit forms and any other legal documents. These agreements offer both the landlord and the tenant with same protection and also obligation, ensuring for a peaceful landlord tenant relationship. Our property managers will prepare a complete detailed record check-list and carries out move-in and a move-out property assessment. This procedure ensures that there is no a future misunderstanding or disputes at the moment of terminating the leasing contact with the tenant. Adding value in terms of the investment Enhancing the value of your property Prudent management performance is the key to ensuring that an investor can appropriately return his/her investment. The objective of the company is to maintain and also add value to the property in a way which is economical and efficient. This is achieved through our staff which is experienced and knows how to manage property in a profitable manner. We shall focus our efforts on enhancing your income from your property while at the same time preserving the current income and enhance your property values. The company also will ensure that your property is properly maintained and that tenants do comply with regulations, restraints and property rules. If there is need, the company shall carry out regular inspections of the premises. (Gary, & Kempner, 1999) Rental evaluation It is important that the true worth of your property is known and its value correctly represented. The company shall carry out a rental evaluation which is free and assess the property and its amenities, we shall factor the local market trends and tenants wishes and provide information on what you should to attract and retain the best tenants. To add value on your property we shall advice how to improve the current apartments. In order for you to maximize your returns on your investments through lower maintenance costs and premium rent, we shall offer the current best curb-appeal (Gary, & Kempner, 1999) Conclusion and recommendation Recommendations It is recommended that a more professional approach shall be taken when handling property. Extensive marketing and advertising is important as offers the property managements to market the property to wider market and probably get the best clients/tenants. Real estate property remains a viable investment, but the owners have to let professional companies run their properties for maximum benefits. Another recommendation is that in order for a company to be successful in management property it has to develop good customer care relation respond to the demands of the tenants who are the customer without delay. This will ensure that tenants are satisfied and continue to stay in the property ensuring continuity of revenue collection. Some other steps the property management companies have to undertake are; Arrange constant maintenance and repairs of the property Ensure that tenants comply with laid down laws and regulation and procedures. Carry out inspection of the property on regular basis Formulate and maintain a proper way of collecting rent and security deposits. (Gary, & Kempner, 1999) Conclusion Property management remains vital in modern world, with heightened competition in the industry it is important that a property owner gets the most competent property management company to reap maximum benefits from his/her investments. Management property is a tricky affair and requires a lot of professionalism in order to overcome obstacles that are bound to arise from tenants and even the local authority. It has been noted to being involved with lawsuits with tenants as it takes a lot of resources and in most cases leads to the property owners losing money in terms of vacant or unoccupied homes. To avoid this it is important that the property managers do understand the laws governing tenant/ landlord relations well and at the same time put in place mechanisms to ensure that he only gets the best tenants with good credit worthiness and who can stay well with other tenants. Poor management of property will lead to poor returns from the property. However, it has been noted that high professional services ensures that tenants are well handled and care for. It also ensures that only suitable tenants are sought who will not problematic in any way. Good property managements involves proper and extensive marketing of the property, timely response to tenants' complaints, regular maintenance and repairs, good agreement contracts between the tenants and the landlord among others. It remains to be said that property management remains challenging in this 21st century. Reference: Gary, K & J Kempner, J (1999) Apartments Integral for Long-Term Development Strategies; Journal of Property management, Vol. 27, No. 3, Read More