Who Manages Your Management Company?
- Manuel (manny ) J.Herrera
- Oct 8, 2022
- 3 min read
For years, Financial and Real Estate experts have promoted Multifamily Real Estate as one of the most stable, and efficient ways to grow money. However, a multifamily property can become a major financial disaster for the owner if it is mismanaged. In Tampa alone over 50% of multifamily real estate properties are classified as asset type D and below.
Some of the most common signs of financial stress in a multifamily real estate property are:
1. Rent below market
2. Low Occupancy. ...
3. Low Rent Collection Performance. ...
4. Bad Tennant Management relations. ...
5. High turnover Expenses. ...
6. Bad Reputation & Online Reviews. ...
7. Lack of Physical Improvements.
As any other income producing instrument, multifamily real estate investments, are valued by the net return they yield to the owners. If your property net operating income at the end of the year is $100,000, and potential buyers are demanding r 5 to 6 %, return, your property value is between $1,700,000 and $2,000,000.
It should be obvious to think that for a multifamily property owner to preserve the market value of their properties, they must be able to exercise full control of the property's financial results. Unfortunately, in a vast majority of cases, that is not the situation. In fact, a good percentage of multifamily property owners are passive investors, and they rely on third parties for the management of their properties. This happens for a good reason. Managing multifamily properties is not an easy task. It requires full dedication and expertise to deal with day-to-day tasks such as: collecting rent, setting rent prices, maintenance services, bookkeeping, etc. Therefore, it is up to the owner to make the important financial decisions.
As a property owner, ask yourself the following questions:
What kind of financial reports are you getting from the management company? (Rent Roll, Profit and Loss Statement, Bank Reconciliation, etc., and how frequently)
What key performance indicators have you set up to control financial results? (Budgeting, Cost control, Advertising, Vacancy, Market Rent Research, Maintenance, etc.)
The Multifamily Real Estate Exchange.
We have created the Multifamily Real Estate Exchange to bring an efficient solution to the market. We are the missing link between the owner as investor, and the multifamily real estate property as a commodity.
We develop effective collaborations with: Developers, Architects, Contractors, Mortgage Bankers, Real Estate Brokers, and Title Companies, to deliver the most comprehensive support in connection with the acquisition, sale, financing, and management of multifamily real estate properties.
CENTURY 21 Beggins Enterprises
14995 D Gulf Blvd, Madeira Beach, FL 33708
Mobile: +1 (813) 951 5880
Manny is a Florida Licensed Real Estate Agent associated with Century 21 Beggins Enterprises. He is the Director and Founder of the MRE Exchange Group. He holds a Master's degree in Corporate Finance from Bowling Green State University, a Second Master Master's in Information Technology from Strayer University, and a Scrum Master's Certificate. He brings to the team an extensive experience in Finance, senior experience in Banking, Project Management, and a comprehensive understanding of Multifamily Real Estate. Manny acts as the end-to-end coordinator of the entire process and makes sure every transaction meets the expected quality requirements. "I believe that multifamily housing is critical to our society. It is the most efficient way to increase the supply of housing necessary to accommodate employment, support community stability, and enhance the quality of life"
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