Commercial Realtors – Tenant Management Strategies to Improve Landlord Property Portfolios

When it comes to commercial property performance today, the tenant mix and the tenant profile need to be well managed. When this is done correctly, the property is constantly ready for any unusual circumstance, change in business strategy, or property sale.A professional property manager or leasing manager should be able to provide the landlord with up to date tenant management strategies as part of their professional services. Local property market awareness will be critical to forming the appropriate recommendations for the landlord.To manage the tenancy mix some critical issues relating to lease occupancy need to be tracked and optimised. Here are some other main ones to consider:
Always be well aware of the upcoming lease expiries. These are the tenants that will be getting to the end of their lease term inside the next two years. As the date for the lease expiry draws nearer, you will need to either negotiate a new lease with the sitting tenant, or find a new tenant. In most circumstances you are seeking to avoid vacancy downtime.
Each tenant within the building will from time to time have changes in some business strategies, pressures of occupancy, or the business use of the premises. The only way to keep on top of this problem is to meet with your tenants regularly. In a busy property or very active tenancy, these meeting should occur at least monthly.
Factors stemming from the lease document as it applies to each of the tenancies should always be understood and exercised. In a property with multiple tenancies it is essential to understand each and every lease document and the differences between them. This says that the property manager or leasing manager should be very familiar with reading and interpreting lease documentation. If you need any assistance here, consult with a local solicitor for guidance.
Rent reviews for each and every tenant need to be monitored and administered. Given that the rent reviews can be different and time critical, ensure that you fully understand the critical dates by which the rent reviews need to be implemented.
The permitted use of the premises for each tenant will be outlined in each single lease. It is important that the tenant remains within the agreed permitted use provisions of the lease document. Monitoring this process is always important.
Each lease today in the properties that you manage can have special provisions of rental and or outgoings to be applied to the tenant. Lease clauses should be reviewed so that you understand how any outgoings are to be applied and recovered from each tenancy. The current and historic building operating costs will form part of that assessment.
Go through every lease document to ensure that you fully understand any special conditions and relationships between the landlord and the tenant in each case. Look for any issues that require action on the part of the tenant or the landlord. Into these issues and dates into a diary Software System that can alert you to the event well in advance.
When a property is well managed, it is usually because the tenancy mix and the tenancy profile have been correctly understood and optimised by the property manager or leasing manager. When a landlord pays a fair fee for property management services, this task can be done comprehensively and well.

What You Need to Be Eligible for a Short Sale

A short sale occurs if a homeowner sells a home for less than what is owed. This type of sale is not able to transpire without the approval of the loan provider who has your mortgage loan. Even though the lender normally incurs a loss by allowing a short sale to happen, it is generally less expensive versus a foreclosure.A number of loan companies want this to be the very last option before advancing to the foreclosure process. Hence, the criteria designed to find out which individuals and properties are eligible is rather thorough. Most individuals will need to demonstrate that they really are going through financial hardship and that they can’t fulfill the financial obligations regarding their mortgage contract.A mortgage company will normally require that owners provide a letter of hardship outlining their financial issues and the reasons pertaining to their lack of ability to provide the monthly mortgage payments. As well as the hardship letter, the creditor will probably require that individuals submit a total short sale package explaining their personal financial conditions, as well as submitting bank statements in addition to current pay stubs.If the home owner submits a thorough and convincing package, the creditor will delegate the case to an asset coordinator who will review the details regarding the package and find out it can be permitted.These are genuine reasons that will convince a lender of a financial hardship: – Divorce  – Medical emergency – Financial Bankruptcy – Death having to do with a partner or spouse  – UnemploymentThe package must contain an adequate explanation pertaining to financial hardship. According to the specific loan servicer, the particular documentation may be required to be able to qualify for a short sale.- Most Recent Pay Stubs  – Copies of Previous Bank Statements- Statements of Credit Accounts – Credit Report showing your personal liabilities – Tax Returns for your small business when you are running their own business – List of Personal Assets and Liabilities including a household budgetThe loan provider will also have to evaluate whether the home values in the neighborhood have decreased to a degree less than the mortgage balance. Mortgage lenders will assess recent property sales in the area by checking The local MLS listings along with speaking to Real estate professionals nearby. In order to be entitled for this type of sale, borrowers must typically be more than 3 months behind on their mortgage payments. The default on home loan payments will give the loan provider a strong sense of whether or not the probability of foreclosure is evident, and whether a short sale could help avoid a foreclosure process for both the mortgage lender as well as the borrower.  The process can be very cumbersome for distressed home owners. After sending in a short sale package to the loan servicer and being given an approval, borrowers must still find somebody that is able to purchase their house. Because of the complexities that are there throughout a short sale transaction, it is preferable to get the help of a talented real estate agent.

Smart Rental Property Investments – How to Make Them (Part 1)

Has anyone ever told you that investing in rental property is easy? Yep, just buy a property with no money down, wait a year and then sell it to the next person in line for a hefty profit, all while collecting monthly rent checks and not getting your hands dirty. Sounds great – ok, my article is finished, finito. But wait, there’s one small fact that’s missing from that prior advice – right, it’s called reality, oops!The Status of the Real Estate Market TodayThe days of getting easy financing from lenders to buy investment properties that experienced double-digit annual appreciation have come and gone. The real estate landscape is currently correcting itself to get back to normal, where the number of buyers in the market equals the number of sellers. Although corrections can be painful, fortunately they don’t last forever. In the long term, they provide market stability and opportunities for buyers. And this is actually healthy – it’s the markets way of applying the brakes to keep the train on the tracks.Today, as a rental property investor, you’ll need a solid base of knowledge on the subject to be successful, especially in this challenging real estate and economic environment. Knowledge of the business will “let you know what you’re getting into” so that you can avoid potential problems and investment mistakes.Basically, making smart rental property investments involves taking the following steps:

Evaluate your employment situation: First and foremost, the stability of your job and income stream is a key factor that reduces your real estate investment risk. How stable is your industry, employer and the economy in your area? If you were to lose your job tomorrow, how long would it take for you to find suitable employment again? Could you collect unemployment benefits if you were laid off, and for how long?

Take inventory of your current financial status: Getting your financial house in order and paying down credit is needed to qualify for lender financing to purchase property. As a result of the “sub-prime” lending mess, lenders have tightened their belts with stricter qualifying standards for borrowers. You’ll need to have enough money saved for a down payment. If not, you’ll have to develop a disciplined budget and savings plan to accumulate the necessary funds.

Get pre-approved for a mortgage with a lender: This will make you a serious buyer in the eyes of sellers and will determine “how much house” you can afford. And, shop around with several lenders to get the best deal – this can save you a lot of money, especially over the long run.

Develop a real estate investment plan: Just like a “road map” is needed to get you through unknown territory to your ultimate travel destination, a real estate investment plan is needed to help you realize your investment goals. Learning the fundamentals of how to develop a practical investment plan that’s tailored to your individual goals is essential for achieving investment success.

Realize that all real estate is “local”: Get a feel of the real estate market conditions in the areas where you’d like to buy investment property. This includes getting actual sales price (not just list price) data of recent investment property sales in the local areas. Having your finger on the pulse of the local rental property market is paramount for investing wisely.
We’ll stop and catch our breath here so that the information can be absorbed. Part 2 of this article completes this list with several more recommendations that will “round-out” the major steps needed to make smart rental property investments.