Thursday, September 22, 2011

Berlin Property - Cost of real estate management and the best way to control it - Part 2

Denver Estate Real

Part 1 of this series explained some of the pricing models commonly used for property management services and prices of these are the real estate market in Berlin. The second part of the article are areas that are often omitted in contracts management and are extra "surprise" costs that are not in many cases lead to budget. There are also instructions on how to avoid surprises like that. Other sectors are not directlyProperty management services associated with the property manager and how they are distributed to undermine an initially competitive prices.

Denver Estate Real

What is included in the fee agreement?

Denver Estate Real

A healthy balance between what is included in the canon and what is included in the contract, but at an additional cost, the fee is calculated and how the key is to control costs. If you include too much you pay each month, even if you do not use it. If you have too manyAdditional services you can not pass on cost control and access time, signed for delivery is often not included in the full possession of the required information for the top.

Denver Estate Real

An example of useful extras: The writing of a lease must be included in the fee. The current fee should be paid an additional fee, which can also benefit from the possibility of an external agent, but still the property manager responsible for the content of the leaseContract. Similar rules could apply to repairs once they exceed a certain amount.

I recommend agreeing a fee structure for the additional services probably some 'time during the contract period, as required in the competitive phase before the management agreement is signed. You will probably get a better deal than asking extras after signing.

Performance measurement of costs

I always include descriptions of output-oriented and service-level agreement (SLA) andTo negotiate performance measurement tools such as key performance indicators (KPIs) in the treaties for the customer. In this way, it should ensure that the property manager knows what to expect and knows exactly what would happen (the tax) does not agree.

Other services available to the property manager

And 'popular among property managers themselves or in partnership with all types of investmentServices such as cleaning, landscaping, plumbing, etc.. Without clear rules for awarding contracts is very compatible with real estate management fees could easily be compensated for these additional services.

Kick-back providers, insurance companies, etc.

This is not a common practice, but it is not uncommon that the provisions of discounts points, etc., are paid separately. It should be clear to the manager of the building that would be considereda conflict of interest if the property manager would not provide this benefit to the property.

Summary of results

Both sides of the property section of Berlin - Cost of real estate management and the best way to control it, provided examples of the diversity of factors that influence the cost of real estate management and, simultaneously, illustrating the quality of service. Sinceis the cost model, fixed rate or a percentage, with the contract specifications and, last but not least, services or other commercial interests in the property management provided.

Private investors, especially international ones are useful to have a local agent and a pair of eyes on their investments and their performance management. For individual blocks or a complete portfolio of small property managementwill not be accessible. In this case, I recommend

a research and consulting firm in the assignment of a property manager; Inspection every 3 to 6 months, beginning up to one or two times a year.

This allows the investor on its investment plans and other activities to concentrate when he knows that his property is well managed and a pair of eyes watching over them.

Berlin Property - Cost of real estate management and the best way to control it - Part 2

Denver Estate Real

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