Archive for December, 2011

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December 7th, 2011  Posted at   Property Management
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Commercial and retail property management are special disciplines of a good real estate agency. Especially skilled people are involved in the running of the management property portfolio for landlords. As part of that process it pays to have a systemised annual approach to the management year. You can break the year into 4 separate phases; each phase leads to the next.

So annually cycled property management systems help the agent and the respective property managers keep on top of the portfolio challenges. The greater number of properties in the portfolio, the bigger this need.

There are 4 distinct and main stages to the property management year when you look at any property type (office, industrial, retail). For this discussion we will base the comments on a standard financial year (July to June), although some owners and managers have used other 12 month cycles quite successfully (January to December is quite common).

Using those 4 main stages you can successfully do many things in a controlled way to help the overall property outcomes. The main stages are:

  • Budget Planning (March to May)
  • Financial Results Analysis (June to September)
  • Tenant Mix Planning (October to December)
  • Property Performance Planning (January to March)

Each of the 4 stages leads to sub-issues and events. This simplifies your management year and keeps you on some track to control and progress for your landlords.

  1. Taking them separately and splitting the requirements of each here are some guidelines to which you can add any other issues specific to your area or property type:Budget Planning- review outgoings for the year to date, allow for expected vacancies, review net and gross rentals in the market, rent review analysis and expectations on a tenant by tenant basis, option term expectations, set budget targets for income and expenditure in the coming year, maintenance contracts costs and repairs expectations, assess increase potential in all outgoings for the coming year, capital expenditure projections, and landlord funding or property holding plans.
  2. Financial Results Analysis- actual income and expenditure results for the year, reconciliations, arrears recovery reports, budget adjustments for current year, capital expenditure analysis for end of year, net income analysis, and property valuation review.
  3. Tenant Mix Planning- Anchor tenants stability and performance, specialty tenants location and sales performance, sales figures in retail groupings, customer demographics, product and service groupings by tenant, lease expiries, vacant tenancy marketing, vacancy controls and remedies, commissions for reletting, leases for renegotiation, tenant retention plans, marketing of the property (relevant to retail), and lease documentation review.
  4. Property Performance Planning- Planned and unplanned maintenance allowances, capital expenditure works planning, contractors working on the property, refurbishment and renovation planning, retendering of maintenance works (where appropriate), risk management, energy management, essential services contracts planning and compliance, building code compliance, allowances for any heritage components or restrictions, and any improvements or changes to the property. (more…)
December 6th, 2011  Posted at   Building a Home
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There are several considerations in the drafting of the plans for the home you have been contemplating in your mind to construct. Aside from the materials and labor you have identified to utilize in its construction, the site location is also of vital importance. Several problems have been encountered during project implementation because the location’s topography and other site conditions were overlooked.

Site inspection is a critical phase in planning. Major unforeseen events unfavorable to the owner can be avoided if a well-coordinated effort in investigating the project location is undertaken. The estimated cost of the project can be realistically prepared if an actual site inspection is conducted prior to the finalization of the plans. Generally, the cost of the project tends to increase due to the actual site conditions that were not noted during the preparation of the construction plans. This increase in contract costs is termed variation or change orders depending on their effect on the building plans.

What are variation or change orders?

Variation or change orders are changes in the plans that need to be implemented to make the building to be constructed adaptable to actual site conditions. A good example of this change order is when the actual site location is depressed while the plan shows a leveled area. In such a case, big volume of backfilling material is required in addition to the revision of the depth of the columns of the home building. The changes on the floor’s backfilling works and volume of concrete including steel bars to revise the columns are called change or variation orders.

What are the effects of variation or change orders?

If the works called for in the variation or change orders require materials input, it follows that your labor, indirect cost, contractor’s profit and tax will also correspondingly increase. This will eventually jack-up the estimated cost of your home building project. If the amount involve is not provided in your budget contingencies, the effect on your project would be very frustrating. Parallel to your budget increase, it is also possible that your timeline will be affected. If the works required are within your critical path (that is, you have to accomplish it first before you can proceed to the next job like in revising the length of your columns due to the depressed elevations), your completion time will have to be extended.

December 6th, 2011  Posted at   Building a Home
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A great segment of our society considers home construction as a major undertaking of the family. Many consider their homes as one of their priceless possessions. It is therefore important that in home construction, every aspect of the process from planning up to its final completion is meticulously studied.

As planning requires exhaustive studies, the same applies to identifying the best site for the home construction project. The site must adapt to various requirements like accessibility, cost, topography, orientation and other factors geared to the desires and needs of the homeowner.

Is the site accessible?

The factor of accessibility of the location is a major consideration in home construction. No amount of majestic beauty of the site could match the presence of roads leading to the property under evaluation. Not only the road to reach the site is under scrutiny, but its condition is also investigated. Major routes adjacent to the site are a big plus and are likewise noted.

Is the cost reasonable?

There are sites that can be easily reached. However, there are times when the costs to acquire them are restrictive and not within the budget. In this kind of situation, alternative sites are considered and a cost comparison is undertaken. In most cases, budgets are adjusted to conform to the existing prices.

Is the terrain suitable to the plans?

Generally, the plans are finally drafted only after the specific site has been identified and acquired. The owner’s needs are of paramount considerations. Those who prefer higher ground choose hills, while others are comfortable living on valleys and plains. In both situations, the topography of the site is the controlling factor in coming up with the construction plans.

Is the property facing the east?

There are homeowners who desire to have their homes greet the morning sun. Others who could not afford the same do some adjustments in their planning by putting a back porch to similarly enjoy it. This practice only shows that the orientation of the lot also plays a major role in home construction. Many planners and homeowners are putting a premium on this factor. (more…)

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