Condo Association Management

Whether leasing multifamily, office or retail, there is big profit in positioning!

The same property marketed in the right way can not only deliver more tax benefits, higher rents in the short term and become much easier to manage but can build value faster and deliver far higher returns over the life of the investment…

Many commercial real estate specialists and agents are excited about the new surge in interest in the market, and especially the huge influx of international buyers and investors. However, while they might be bringing fresh capital they have frequently fallen into some of the same old bad habits and pitfalls grown right here. This mindset has focused on doing as little as possible with the expectation that it will yield the maximum returns, at least for now.

This especially applies to customer service in property management and building maintenance.

Both can have expensive consequences. Tenants would much rather fork out more, will deal with other inconveniences and stay loyal if they are treated well. Deferred maintenance is just bad business and leads to all types of high cost issues and liabilities down the road, which can far exceed any enhancement in short term gains.

Of course smiley property management company reps and a clean, well maintained property, while smart business, doesn’t necessarily mean maximizing the opportunity by themselves.

Looking at the size of the investment and beyond immediate cash flow to overall yields and returns on exit, it certainly pays to spend a moment or even an hour or two on strategy.

This may be a completely new concept to some commercial real estate investors but that is exactly why some are shocked when things take unexpected turns while their counterparts seem to be enjoying even greater incomes and wealth accumulation, regardless of industry trends.

How you position your property makes all the difference in the income it will produce and its appeal and value to future buyers.

This applies invariably to all commercial real estate sectors. Consider how coworking spaces have managed to position themselves as premium office space that yield many times the returns of established executive offices or traditional office suites, disrupting what agents and lenders thought they knew about the industry. They haven’t just achieved this due to more modern design or cheaper rents; they offer community and real, tangible value in increased visibility and promotional opportunities to entrepreneurs and business owners.

In retail over the last couple of years and even right now we’ve seen prime properties in great locations emptied while other less likely sites are blossoming and fully occupied at premium rental rates because they have mastered managing their image and cool.

While this may not be completely revolutionary thinking in the above sectors it certainly is for many investors leasing multifamily apartment buildings. Sure you can go into parts of Worcester, MA, find cheap multifamily properties turnover tenants and keep churning them with a slumlord management philosophy, believing that you are making out like a bandit, or you can apply a more sophisticated level of strategy.

A makeover (which doesn’t have to be exceedingly expensive), or even simply re-positioning the building’s branding, image and location can mean reaping far larger yields month after month and year after year. It can mean increasing rents in the short term as well as have a ripple effect on the immediate area which reverberates; raising the property’s value further, while reducing tenant turn over and retaining the best tenants longer; compounding overall returns.

Instead of being just another rental complex or racing to the bottom with discounts; what about heading in the opposite direction and being the high-end solution, or the choice for the younger highly paid tech crowd or a partner to businesses providing corporate housing?

Think about the potential…