CS7 – Commercial, Industrial and Land Properties Tasks

Lesson Notes

Timestamps: 

06:29 – Finding tenants renters for income flow of the building and land 

10:29 – Property Management 

18:08 – Commercial Property Tasks

 

In this lesson:

• Finding tenants renters for income flow of the building and land
• Property Management
• Commercial Property Tasks

 

The term, Commercial Property refers to buildings or land intended to generate a profit, either from capital gain or rental income. Commercial property includes office buildings, medical centers hotels, malls, retail stores, multifamily housing buildings, farmland, warehouses, and garages. 

Industrial Real Estate includes: all land and buildings either utilized or suited for industrial activities. Such activities are defined as the production, manufacturing, assembly, warehousing, research, light storage, distribution, and some related office requirements of tangible goods rather than service-related users.

 

Land is real estate or property, minus buildings and equipment, that is designated by fixed spatial boundaries. Land ownership may offer the titleholder the right to natural resources on the land.

 

Rental Property

A property from which the owner receives payment from the occupant[s], known as tenants, in return for occupying or using the property. Rental properties may either be residential or commercial. The owner of rental property may be allowed to take certain tax deductions, such as mortgage interest and depreciation. 

 

Rental Tasks

Setting Rent: Setting the right rent level to attract tenants to your property. To determine the rent range, the property manager will look at the market where the property is located and analyze comparable properties in the area. 

Collecting Rent: Setting up a system for collecting rent from tenants. To ensure optimal cash flow, they will set a date to collect rent each month and strictly enforcing late fees.

Adjusting Rent: Increase the rent each year, according to individual state and/or municipal law. They can also decrease the rent if they feel it is necessary.  

 

Property Management

Property Management is the operation, control, and oversight of real estate management. It indicates a need to be cared for, monitored, and accountability is given for its useful life and condition.

 

Property Management Tasks

Managing tenants is another core responsibility of a property manager. The property manager may be involved in finding and screening prospective tenants, managing daily complaints and maintenance issues, and handling tenant move-outs and evictions.

 

Finding Tenants: Property managers are responsible for filling vacancies. They will advertise the rental and create a compelling ad. They also understand what attracts tenants, so they can offer tips to help makeover the property. 

 

Screening Tenants: Property managers should have a consistent screening process, including running credit checks and criminal background checks, which can decrease your chances of tenant turnover. Experienced property managers have seen hundreds, even thousands of tenants, so they have a better idea of how to select the right tenants; those who will pay their rent on time, have a longer tenancy and create fewer problems.

 

Handling Complaints/Emergencies: The property manager may deal with maintenance requests, noise complaints, and handling emergency situations.

 

Handling Move Outs: When a tenant moves out, the manager is responsible for inspecting the unit, checking for damages, and determining what portion of the security deposits will be returned to the tenant. After move out, they are responsible for cleaning the unit, repairing any damages and finding a new tenant. 

 

Dealing with Evictions: When a tenant does not pay rent or otherwise breaches the terms of a lease, the property manager understands the proper way to file and move forward with an eviction. 

 

Commercial Property Tasks

Commercial Property managers are responsible for overseeing and directing operations at properties, including retail spaces and office buildings. They typically manage the day-to-day needs of these properties, including maintenance and custodial tasks, while interacting with tenants to collect and process rent checks, maintain lease agreements, and show spaces to potential lessees. 

Commercial Property managers may work at one specific location or may be responsible for several buildings owned by a single property management company. This is a role that requires a high level of organization and the ability to successfully resolve customer service questions and provide a point of contact for tenants and building owners.

 

Manage Leases

Commercial Property managers are often the go-to contact for tenants and potential tenants. They may be responsible for creating and signing lease documents, updating leases before they expire, and showing available spaces to businesses seeking commercial space. In some cases, they are also responsible for negotiating lease terms, establishing expectations for the tenant and property management company, and updating leases to attract and retain quality tenants.

 

Direct Maintenance Activities 

Commercial Property managers are also responsible for conducting maintenance and cleaning activities and working with third-party service providers to repair and maintain crucial building systems like HVAC, plumbing, and electricity. They may negotiate and prepare contracts for long-term maintenance activities and individual projects and often supervise maintenance projects to ensure that they are completed according to expectations. 

 

Report Financial Information

For commercial property managers who work for larger property management companies, reporting financial information can be an important part of the job. Commercial property managers may gather financial data and prepare reports on budgets, occupancy, and overhead costs to help support decision-making and ensure profitability. They may also submit monthly or annual reports on property income and tenant payments.

 

Market Commercial Spaces

Many commercial property managers are also tasked with marketing available commercial spaces to potential clients. This helps to ensure that commercial properties are not sitting empty and that commercial spaces are generating revenue. Commercial property managers may advertise available spaces in local publications or online and post signage advertising information about spaces for rent.

 

Manage Cash Flow

In addition to reporting on financial information, commercial property managers also take an active role in cash flow management, establishing budgets and identifying opportunities to reduce overhead costs. They may analyze tenant trends and leases to generate ideas to enhance income and are also frequently responsible for collecting rent payments and paying subcontractors. 

 

Oversee Personnel Management

Frequently, commercial property managers also oversee site personnel, including security guards and regular maintenance staff. In this aspect of the role, commercial property managers are responsible for processing payroll, making hiring decisions, and conducting employee assessments, as well as communicating with employees to outline expectations and complete business-critical projects. 

 

Common Tasks:

• Acquisition (Lead Generation, Calls, Listing)
•  Marketing (Promotion, Social Media, Website Management, Matching, Contracts)
• Management (Taking care of tenant’s needs, Reminders, Calls) 
• Accounting

Physical Task:

• Repairs
• Lawn Care
• Winterization

What we’ve learned today:

• Finding tenants and renters for income flow of the building and land 
• Property Management
• Commercial Property Tasks

 

Portfolios

Create a real estate flyer using Postlets or Canva using any property on the internet (Zillow, CraigslistM, etc.)

• 1 property in the United States
• 1 property in the Philippines

Attach both files to the email.

 

Email Subject: REVA – Portfolio 7

 

 

Examples

Use the arrow on the navigation bar to view the other pages of the portfolio samples.

Portfolio 7

 

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