Property Management Chapter 12. Property Management and L easing Objective of a Property Manager –To secure for the owner the highest net return over.

Slides:

Advertisements

Similar presentations

Real Estate Principles, 9th Edition

Advertisements

Chapter 8 Valuation Using the Income Approach

RURAL PROPERTY RIGHTS AND INTEREST LAND IS SELDOM HELD IN FEE SIMPLE DUE TO ACCESS EASEMENTS, UTILITY EASEMENTS, MINERAL RESERVATIONS, AND OTHER ENCUMBRANCES.

Deeds and Leases Chapter 5. Deeds and Leases Deeds –Written document that transfers title to real estate.

INCOME CAPITALIZATION APPROACH TO VALUE  A BASIC INVESTMENT PREMISE IS: THE HIGHER THE EARNINGS, THE HIGHER THE VALUE.  THE PRINCIPLE OF ANTICIPATION.

Law For Small Business (Mgmt 349) Professor Charles H. Smith Negotiating a Favorable Lease (Chapter 13) Fall 2011.

Leases. Leasing Basics Lessor Lessee Landlord retains a reversionary right In most states, Alabama included, lease agreements for more than one year must.

1 Welcome to the International Right of Way Association’s Course 701 Property Management Leasing 701-PT – Revision 8 – INT.

 ‘Trade-Offs’  Interest › Lost with a down payment/security deposit  Commuting › Driving to work daily › Time vs Cost  Time & Money › Lower/older.

Topic 4 Financing Strategies. Topic 4: Financing Strategies Learning Objectives – (a) Analyze the various sources of borrowing available to a client and.

Chapter 9 Property Management and L easing Objective of a Property Manager –To secure for the owner the highest net return over the useful life of the.

Housing MortgageVocab Advantages True or False.

Agricultural Leases Landlord –Tennant Contracts. Farm Lease Agreements Should be equitable for each party Specific language and clear provisions in the.

INCOME- PRODUCING PROPERTIES: LEASES AND THE MARKET FOR SPACE Objectives Major property types Economic forces Supply and demand relationships Location.

Real Estate Valuation. Real Estate Valuation: Market Comparison Approach.

Texas Real Estate Contracts 4 th Edition © 2015 OnCourse Learning.

Financial Statement Risk analysis

© 2010 by Cengage Learning Real Estate Leases Chapter 17 ________________ Real Estate Leases.

© OnCourse Learning Chapter 17 : Real Estate Leases.

Real Estate Principles and Practices Chapter 14 Leases © 2014 OnCourse Learning.

Chapter 19 Permanent Financing of Commercial Real Estate Properties © OnCourse Learning.

Chapter 09: Income-Producing Properties: Leases, Rents, and the Market for Space McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc.

Real Estate Principles and Practices Chapter 14 Leases © 2010 by South-Western, Cengage Learning.

© 2013 All rights reserved. Chapter 4 Real Estate Investments1 New York Real Estate for Brokers 5 th e By Marcia Darvin Spada Cengage Learning.

2 8/21/ Chapter 2 Income Concepts. 2 8/21/ Chapter Objectives Upon completion of this chapter, the participant will be able to: –Contrast.

© 2013 All rights reserved. Chapter 17 Commercial and Investment Real Estate1 New York Real Estate for Salespersons, 5 th e By Marcia Darvin Spada Cengage.

Chapter 22 Buying a Home.

Engineering Economy Why is Engineering Economy important? Practical everyday questions –Should you finance your car or pay cash? Finance for $6995 –vs-

Chapter 9: Leased Fee and Leasehold Valuation. Introduction  Leases affect typical investment returns by impacting:  Net operating income  Reversionary.

Real Estate Investment Chapter 11 Tools of Analysis © 2011 Cengage Learning.

Chapter 9 Introduction to Income-Producing Properties: Leases,

Thomson/South-Western©2008 Chapter 16 Real Estate Leases _______________________________________.

South-Western Publishing©2002 By Charles J. Jacobus Real Estate Principles Ninth Edition Real Estate: An Introduction to the Profession Ninth Edition South-Western.

44.1 b a c kn e x t h o m e Chapter 44 Objectives  Explain the nature and formation of the landlord/tenant relationship.  Name the various types of tenancies.

Contracts Lesson Five. Learning Objectives  Review meaning of leasehold estate.  Learn and understand lease rights.  Become familiar with the various.

As a Book-Keeper it is important that you can identify and categorise items of business income and expenditure Income (business receipts) – can either.

Chapter 5 The Income Statement

Role of Financial Management Objectives Liquidity Profitability Efficiency Growth Return on Investment Strategic role To provide and manage the financial.

Chapter 16. Georgia Real Estate An Introduction to the Profession Eighth Edition Chapter 16 Real Estate Leases.

Leasing. Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax.

© 2012 Cengage Learning. Real Estate Leases Chapter 16.

Lecture 28. Chapter 17 Understanding the Principles of Accounting.

Chapter 12 Property Management.  The role of the property manager is to manage the property with the objective of securing the highest net return for.

© 2008 by South-Western, Cengage Learning Chapter 17 Charles J. Jacobus Thomas E. Gillett.

LEASING. A Contract whereby the owner of the asset (The Lessor) grants the exclusive right to another party( The Lessee) to use the asset for an agreed.

Chapter 19 Permanent Financing of Commercial Real Estate Properties.

©2011 Cengage Learning. Chapter 17 ©2011 Cengage Learning INCOME TAX ASPECTS OF INVESTMENT REAL ESTATE.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 19 SLIDE Saving and Investment Planning Stock.

Valuation Using the Income Approach. The Income Approach to Appraisal A. Rationale: Value = present value of future income Income capitalization: converting.

Chapter 7 REAL ESTATE LEASES Real estate leases are contracts that transfer the rights of use and possession, but not ownership of real estate between.

Chapter 5 Deeds and Leases. Deeds  Written document that transfers title (ownership) of real estate  Necessary Elements of a Deed Designation of the.

Making an investment decision. Value  Investment value: The value determined in view of investment objectives, goals and constraints.  Market value:

Chapter 49 Landlord-Tenant Law and Land Use Regulation.

Def:It is an opinion of value rendered by an impartial person skilled in the analysis and evaluation of real estate Appraisals.

Chapter 6 Leases and Landlord Tenant Relations1 New Jersey Real Estate for Salespersons and Brokers By Marcia Darvin Spada Thomson/South-Western Copyright,

Real Estate Finance Cash flow modeling in Excel. Periodic cash flows (CFVal1 pp , 29-32)  Net operating income Revenues Expenses Cash flow projections.

Chapter 36 Financing the Business Section 36.1 Preparing Financial Documents Section 36.2 Financial Aspect of a Business Plan Section 36.1 Preparing Financial.

Chapter 7 Obtaining the Right Financing for Your Business University of Bahrain College of Business Administration MGT 239: Small Business MGT239 1.

1.9.3.G1 © Family Economics & Financial Education – Revised April 2005 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America,

Chapter 2 Preparing for Management. I. Owner Benefits INCOME CASH FLOW is the cash left over after cash expenses. It is money that any owner can spend.

Chapter 8 Valuation Using the Income Approach

Real Estate Finance, Spring, 2017

Contracts Lesson Five.

Chapter 8 Valuation Using the Income Approach

Valuation Using the Income Approach

Kevin J. Collins, CPA/PFS, MST

Real Estate Principles Tenth Edition

Real Estate Principles, 11th Edition

13 Income Capitalization Approach

Real Estate Principles, 11th Edition

Presentation transcript:

Property Management Chapter 12

Property Management and L easing Objective of a Property Manager –To secure for the owner the highest net return over the useful life of the property

Property Management and L easing Functions of a Property Manager –Administrative management Rent Collection Bookkeeping (P&L reports) –Marketing Marketing strategy (design vs. location) Tenant selection (complementary mix) Rent schedule (market rent study) –Physical management (maint. V. renov.)

Property Management and L easing The Management Agreement –Powers of the Manager Set Rent Execute leases Collect Rent Spend Money on Maintenance Manage Maintenance and Mgt. Personnel –Compensation % of Gross Revenue (3-6% typical) Leasing Commissions (1-5% of lease amt. Cashed out)

Property Management and L easing Role and Function of Asset Managers –Management (Corporate Strategy) –Acquisition (Site Selection) –Financing (buy, Sale-leaseback, rent?) –Disposition (sell, exchange, renov?)

Property Management and L easing Classifications of Leases –Duration of term Tenancy for stated period-conveys the property to the tenant for a stated period of time Tenancy from period to period-indefinite duration (notice given) Tenancy at will-may be terminated by either party at any time Tenancy at sufferance-provides the least protection

Property Management and L easing Methods of Expense Payment –Gross lease-landlord pays real estate taxes, utilities, insurance and all operating expenses –Net lease-tenant pays the operating expenses (Shifts inflation risk) – usually variable expenses –Modified Net (net-net) Tenant pays some mix of fixed and variable expenses –Triple Net (net-net-net) Tenant pays all expenses to the property (Absolute Net)

Property Management and L easing Methods of Rent Payment –Fixed-rent lease-rent is fixed for the term of the lease –Graduated-rent lease (Step Lease)-rent is increased by percentage at graduated intervals –Reappraisal lease-the level of each rent increase is determined by reappraisal of the property –Percentage lease (Overage)-rent is based on some percentage of sales made on the premises –Index lease (CPI index, Porter’s wage index)