14 Aug Frequently Asked Questions
Given the number of years Reynolds Realty Advisors has been in the business of commercial and multi-family property management, we have found a number of commonly asked questions by our prospective clients. In writing this article, we hope to create more clarity and transparency about what is involved in our Premier Property Management services.
Keep in mind…
- “Good” is a state of execution that meets one’s customers’ expectations at a given point in time.
- “Great” is the execution of good property management services measured over time
- “Premier” Property Management is excellence in execution, sustained over a long period of time
Question 1: Is owning Real Estate a good idea?
Answer: Owning real estate is always a good idea over the long run. There are so many benefits to owning real estate such as; cash flow, equity growth, leverage, tax benefits, appreciation, pride in ownership, and the ability to will these assets onto the next generation. Building wealth in real estate can be done, but it is not always easy. Successful real estate investors become the experts in the territory in which they invest and the type of products they hold within their portfolio. Further, successful real estate investors know every aspect of property management, whether they manage the properties themselves or hire the right firm to manage it, on their behalf.
Question 2: What is the benefit of hiring a property management firm vs self-managing?
Answer: Hiring the right property management firm is key if you want to enjoy your real estate investment, realize passive income, travel and not deal with the plumbing issues in the middle of the night. As Robert Kiosoki details in his “Rich Dad’s Cashflow Quadrant” book, one can be an Employee, Sole Proprietor, Business Owner or an Investor. Purchasing your real estate portfolio, which allows you to quit your JOB, is an outstanding step in the right direction. This will move you into the Business Owner quadrant. However, property management of your portfolio is a 7/24 job, which does not allow for vacations, family time, days off or sick time. This will ultimately take its toll on you as the Business Owner/Operator. The investors we meet are highly energetic, adventurers by nature, love the art of sourcing and closing on a good deal and take great pride of ownership. By partnering with Reynolds Realty Advisors, our clients are able to focus on what they do best, growing their portfolio, securing new deals and enjoying the benefits of their passive income. Reynolds Realty Advisors focuses on all the operational aspects of the portfolio for our clients, ensuring we maximize our clients’ NOI and exceed their expectations through employee training/retention, compliance management, strategic marketing, property common area management, maintenance management, tenant management, accounting/cost management, repositioning/ renovation and owner reporting.
Question 3: How do I find the right property management firm?
Answer 3: There are several factors to consider when looking for the right property management firm such as:
- Will they help you to source your next property?
- Will they help you to evaluate the deal you’re considering to purchase?
- Can they help determine the capital improvements, costs, and repositioning opportunity of this property?
- Do you have a connection with the management team of the firm? Are they personable?
- Do they have experience managing the type of properties that are in your portfolio?
- Do they have proven best practices in place, ensuring compliance in every aspect of the business?
- Do they have a proven track record for increasing clients’ NOI?
- Do they leverage best in class accounting systems and owner reporting methodology?
- Do they provide “value-add” to your portfolios?
Question 4: I would like to have more time, but not sure I am ready to let go of my portfolio to be managed by a third-party management company. How can you work with me?
Answer: Many owners who have been self-managing their portfolio, but would like to turn it over to third party management, have a difficult time letting go. Premier Property Management services is all about providing “Excellence in Customer Service,” customizing our model to best fit our clients’ needs. Trust is the foundation to every relationship, to include that between an owner and his/her property management team. To build trust, we must work together to find the balance that works for our clients. Some clients like to take time up front to complete a lengthy due diligence process about our firm and then turn over their portfolio, all at one time. Whereas others, decide quickly that we are their firm of choice, but transition the properties over to us gradually. We have other clients who like to walk the properties with us in order to receive verbal updates, whereas other prefer to have reports distributed monthly or bi-monthly. The key to moving forward with the right property management company is to find the company that will work with you.
Question 5: Cost management is very important to me, how can I stay involved in this area of property management, while having a third party management firm manage my portfolio
Answer 5: Transparency is key and our clients receive just that. With owner access to the portfolio operating bank accounts, accounting system, budget development and alignment, cost reporting monthly and quarterly, our owners are completely apprised of the income and expenses associated with their portfolios at all times. We realize that maintenance and repair costs are a big part of what makes the property cash-flow or not. As such, we pay close attention to that category, tracking spend to budget weekly, ensuring we are within or under budget every month. Capital improvements, remodeling and renovations is one of our areas of expertise, understanding the highest and best use of the property and where to spend the capital improvement dollars in order to realize big returns is what sets us apart from our competitors.
Call us today for a free Property Management Assessment at (866) 613-7772 #1, or visit us on our website at www.ReynoldsRealtyAdvisors.com.
We look forward to helping you to achieve your personal and financial goals through real estate!