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Property Management – Chatsworth – Selecting A Property Management Company

CHATSWORTH PROPERTY MANAGEMENT

The process of selecting the right property
management firm can be a tedious task in today’s
complex real estate market. Ideally owners want a
trained and creative real estate manager who can
achieve the maximum return on assets by improving
cash flow, retaining tenants and increasing the value of
the investment. With numerous amounts of property
management firms in the area, owners often feel lost
about how to select one that best fits the needs of their
property.
What to Look For
To find the right property manager for your investment,
you should start by asking if the management
company’s expertise matches that of the building.
Is the investment an office, industrial, medical or
retail building? Does the building have a vacancy,
maintenance or leasing problem?
It’s important that the property manager’s credentials
prove a successful track record in dealing with the
owner’s type of property, since reporting requirements
of each ownership type will be different. That being said, it’s customary to ask a management company for a list
of credentials that prove their background fits your buildings
needs, and that they are successful in managing those
building types.
What’s Their Reputation
A good management company should have a solid word of mouth
reputation for providing professional services in the area,
so ask around to determine the company’s standing in the
business community.
You will also want to consider the organizations stability with
turn-over. Owners want a constant, familiar face that tenants
trust and recognize – as well as meetings with principals or
owners, not just an associate. So if a company has high turnover
that may raise a warning flag as to the company’s stability.

An owner should consider a management company that is also knowledgeable in accounting, space design,
construction, leasing, sales, valuation,
marketing and maintenance. The expertise
of other employees is likely to have a
broader understanding of the many aspects
of managing investment real estate.
Lastly, ask about the workload of the
manager who will be assigned to your
account, and how often they plan to make
site visits.

Insurance?
It’s important that the management firm
have sufficient insurance coverage, good
loss prevention and risk management
programs, and depositor’s forgery and
alteration insurance (to protect against loss
due to forgery or alterations of promissory
notes). Check to see that the company has
a financial back-up plan to protect against
the loss of money or property through
fraudulent acts of its employees, and that
they adhere to requirements for professional
liability insurance.
Avoid a management firm with conflicts of
interest that may prevent you from getting
the highest value. Ask the firm to disclose
any related companies that it may own or
use exclusively, such as landscaping or
maintenance firms.

What services can be expected?
Property management firms don’t always
provide the same services across the board.
Some firms specialize in a limited number
of services, while others provide a broad
range. It’s important to ask the firm what
specific services they will provide, and work
out a comprehensive written management
agreement with them. The agreement
should outline these services, informing
the owner of what they can expect from
the property management firm, as well as
detailing costs for services that may fall
outside management fees. Management Planning – A management firm will
review the specific property within its environment
and recommend how a client’s goals can best be
achieved
Financial Reporting – Record keeping and
financial reporting are key services provided by
management firms. Ask to see a sample of the
firm’s reporting documents.
Budgeting – Every firm develops and monitors
property budgets, which covers everything
from maintenance to marketing. As the year
progresses, the property manager will update the owner with the status of the budget, and if there are any items that may cause the budget to be adjusted.

Market Rent Analysis – Management firms that
also handle leasing will provide a market rent
analysis, displaying how your properties rent
compares to that of the competition in the area,
and notify you if adjustments need to be made.
Marketing Programs – Each firm should be
equipped with a marketing team to develop and
execute comprehensive programs that include
items such as brochure, property signs, e-blast,
direct mail, advertisements, special events,
newsletters, etc.
Rent Collection – The collection of rent, including
preparing a daily record of deposits, is a basic
service provided by management firms.

Lease Negotiation – A firm that also handles
leasing services is usually responsible for
negotiating all tenant leases and renewals.
Tenant Retention – Your property manager
should also serve as a liaison between you and
your tenants. Happy tenants stay put, attract new
tenants, pay their rent on time and maintain the
buildings facilities. Check to make sure the firm
you are considering has a good written policy for
receiving and resolving tenant concerns.
Documented Procedures – Management firms
should establish documented procedures to
ensure compliance with all federal, state, county
and local governmental statutes; as well as
administrative regulations, ordinances, fire, health
and safety codes.

Final Selection
Assess the information above, and look
for a commercial management firm that
provides the type of services you need.
More than ever, owners of commercial
property much select management firms
with care. The right firm will provide the
services needed to support and sustain
the owner’s property, financial stability,
professional opinions and integrity required
in today’s competitive real estate market.

Since 1946 the Carnahan name has had a reputation for honest and ethical Real Estate Property Management services in the San Fernando Valley, Santa Clarita Valley, Burbank/Glendale, Los Angeles, Westside and Conejo Valley areas.

The reason for our success is helping owners like you when they need it. Below is a partial list of property management services we provide to help you protect your real estate investment.