Using a property manager has both pros and cons. There are no hard and fast rules regarding whether you should hire one or not. You have to evaluate the answer based on your own situation. The following are some considerations to take into account before you jump to a conclusion.Time CommitmentA lot of real estate investors have a full time job so they do not have enough time or energy to manage properties. Especially if the house is situated remotely, many investors might feel they cannot manage on their own or do not want to travel. If fact, you can manage on your own.Cost BenefitIf you have several properties or an apartment complex in one area, using a property manager to manage all the property may be economic. The manager will be able to combine expenses and costs. For example, they can purchase maintenance materials in bulk for all the rental units. If you don’t have several rental units in one area, but together with your friends’ or families’ rental units you do. Then you can afford to hire a professional dedicated property manager.The Nature of the Rental Market Where your Property is LocatedIf your rental property is located in an area where renters mostly check out the rentals through the local property management companies, then you have no other choice but to hire the company. This may happen in small towns where there is only a handful of management companies.Tenant’s CharacteristicsSome tenants are not easy to deal with. You may find some tenants that are constantly paying late, asking for a lot of unnecessary repairs, complaining about everything, or having difficulty keeping up the premises. A property manager may handle the situation better than you as you might be emotionally attached to your property and less likely to handle many issues impartially. What’s more, the tenant might try to take advantage of you. They may take it more seriously if they are dealing with a professional property management company instead of an individual.Does your Property Need Frequent Repairs or Maintenance?If your property needs frequent repairs due to its age or other reasons, having a property manager may help you if repairs are a burden. Usually the property management company either has its own in-house repair service or contracts with outside vendors. In any case, you should ask about it before hiring them and understand how much they charge.What Kind of Service do you need from a Property Manager?Do you need a full service property management, which includes placing tenants and ongoing management service? If the condition of your property is good or new and not much repair is anticipated, you may save your money on the ongoing management service part. If you already have a tenant but you are moving out of that area you can use a local property manager to collect the rent and do the maintenance work.Lack of Interest in ManagingSome rental property owners just do not want to get involved in managing the property at all. They rather have someone look after their rental properties so they can enjoy their life doing other things. That is absolutely ok. Enjoying life is also very important.The purpose of hiring a property manager is to free up your time and make your rental investment successful. Nevertheless, hiring a poor one is worse than hiring no one. You can end up spending more time and money to rescue your property.If you hire one, keep in mind it does not mean you have to be a completely hand-offs owner. You should keep in regular communication with your property manager so he understands you do not treat your real estate business lightly. How to hire a good property manager belongs to another blog we will write about.
Search For Office Space in Dallas
Dallas has long been one of the premier locations for office space and running any type of company. The downtown skyline is one of the most easily recognized among American cities, and the city has a history of erecting architecturally interesting skyscrapers. At the moment, it is also one of the most best and secure times to lease office space in Dallas due to the bad economy. Rates in the Central Business District are down, hovering around $21 per square foot. A major factor in the low rents is the high vacancy rate of approximately 25% in the CBD. As a result, and coupled with the scarcity of available financing, there is almost no current construction activity, with the little progress happening in the outlying areas, such as the Park Lane Project, a 33.5 acre, $750 million mixed use development that will include 750,000 square feet of office space and approximately 700,000 square feet of retail commercial property. The project is opening in phases, beginning in late 2009 and continuing until 2011.
Dallas Commercial Downtown Real Estate News:
One project in the CBD is the new Convention Center Hotel, a one-thousand room hotel scheduled to open in 2011. Part of the city’s plan to revitalize downtown, it is hoped that the hotel will initiate additional construction in the areas of dining and entertainment. There are, however, many projects that are still either in the planning stages or on hold until financing improves. These include a 57-story residential tower (1900 Pacific), a 30 story office building on McKinnon, and a 20 story office building on McKinney. Park Seventeen, a 19 story office building, is scheduled for completion in late 2009 or early 2010. In addition, there are several residential and mixed use towers proposed for the area. Overall the local economy has been decent compared to the rest of America, and by the way executive suites are another option to save some $. To find some pricing on office spaces in Dallas check our listings. We also have commercial properties for rent or lease in the following areas: Arlington, Beltline, Benbrook, Carrolton, Duncanville, Decatur, District, Ellum, Grand Prairie, Irving, Frisco, Garland, Keller, Mckinney, Mesquite, Metro, Northwest, Preston, and Richardson.
Dallas Population, Stats, and Office Space:
Dallas has a population of 1.28 million, and has seen a 7.7% increase since 2000. Residents enjoy a cost of living rate of 91.8, slightly below the national average and other Texas cities like Houston, Austin, and San Antonio. Current unemployment rates are at the 7.3% level, while job growth is a negative 3.7%. The crime rate has decreased steadily from 857 in 2000 to its current level of 696. Attractions in downtown Dallas include the West End Historic District, a renovated area that is home to numerous clubs, shops, and restaurants and is a great area to rent an office space or suite in Dallas. These nearby locations will include amenities and even furnished options, along with great monthly or 12 month lease options. Many special events are scheduled annually in the West End, such as the Taste of Dallas festival each July. Deep Ellum (along Elm Street) is yet another historical district that is home to several restaurants and clubs. The State Fairgrounds are on the fringes of downtown, and feature several museums and exhibits that are open year-round, such as the Aquarium and the Hall of State. The buildings represent some of the finest examples of Art Deco still in existence. If you are looking for news on other major cities then check out our commercial real estate articles.
Other Dallas Economic News and Society:
Professional sports are represented in the area by the NFC’s Dallas Cowboys, the NBA’s Dallas Mavericks, Major League Baseball’s Texas Rangers, and the National Hockey League’s Dallas Stars. Six Flags over Texas is located in nearby Arlington, about halfway between Dallas and Fort Worth, with Hurricane Harbor (a water park) situated just across the street. For more details and history on office space and Dallas in general go here.
Paying Utilities For REO Properties
I Want to List REO’s, but How Much will it Cost?I’ve written in the past about how to list REO’s for banks, but what many agents overlook are the related expenses that go along with carrying many REO listings.Listing REO’s can be very rewarding, but many agents neglect to plan ahead and understand that they will be paying utilities for REO properties that they have listed.This HUB will detail exactly what you can expect and give you some tricks and tips on how to not get in over your head as you start paying utilities for REO properties.What Types of Bills WIll I have to Pay for My REO Listings?Read this twice: It’s not just utilities and its not just while you have the REO property listed!It is incredibly important to understand the lifestyle of a REO listing as you start to budget paying utilities for REO properties. Most REO listings start out as “an assignment.” This means that the bank or asset manager have decided that you will list the property. However, many times the property is in no condition to be listed.To get the assignment ready to be put on the market, you may have to have one or more of the following services performed:
Trash Out (all debris, junk and left over belongings removed and hauled away)
Cleaning
Water shut off / Winterization
Pipe Repair
Lawn / Snow MaintenanceObviously these services are not free. What many agents fail to realize is that the banks expect you to pay for these services up front. Yes they will reimburse you, but it can take anywhere from 30 to 120 days.Once the REO Property Becomes a Listing…Once your REO assignment becomes a listing, most of the major costs have been paid for (trash outs, pipe repair, etc). Hopefully your client will reimburse you quickly.Now is when you need to make sure you are current on the REO listing’s gas, water and electric bill. In colder climates, If the heat gets turned off, the pipes will freeze and your home will never sell. If you have no electricity, buyers can’t view the home.Also, don’t forget that if you don’t stay current paying utilities for REO properties, they can become a lien on the home. If there is a lien on a REO listing that you are trying to sell, it can delay a closing substantially. That means you’re waiting even longer for your money.Tips for Paying Utilities for REO PropertiesNow that I’ve scared you out of the business, let me try and give you some tips for paying utilities for REO properties. This could save you thousands of dollars and help you avoid the huge cash drain that getting into the REO business can create.
Know Your Contractors: I can not stress this enough. If you have a good relationship with your services you can save a substantial amount of money for the services. If your contractors know they will get all of your business, their rates will be lower. If their rates are lower, you have less money that you are waiting to be reimbursed for.
Negotiate with Your Contractors: As you get into this business, you’ll be contacted by many service providers in every industry trying to earn your business. That’s great for your cash flow situation! Set up agreements with them that you will pay them immediately AFTER THE BANK SENDS YOU A CHECK. Even if its only $100, once you get up to 30 or 40 listings, that money adds up. If they won’t wait for the bank to pay you, offer to pay them half up front and half once you are reimbursed. As you get started listing REO’s and paying utilities for REO properties, don’t make the mistake of thinking you can carry the costs because “it’s only one listing.” Take a long term approach and think about every transaction multiplied by 40 listings.
Talk to your local bank: Many banks will be more apt to make a small business loan if you explain that the money will only be used for paying utilities for REO properties. If you can show them your client list, many banks will take that into consideration when factoring in risks. When they are lending against big name lending institutions and know that you will be reimbursed, its much easier for them to justify loaning you the money than if you were using it for marketing or business expansion.