From leasing to sales to property management, there are many segments within the real estate market and misconceptions regarding how they operate and interact. This article looks into a few of these so called myths that the professionals at JLL address on a daily basis.
Myth 1: Property Managers have the power to make all decisions on the spot.
As they make rental space their own, tenants often request special accommodations and are frustrated when property managers cannot give them instant approval of requests to add exterior signage or alter paint colors. While property managers are hired by owners to ensure that buildings run efficiently and to satisfy tenant concerns, they do not always have permission to make decisions without approval from the owner.
Myth 2: A space that is vacant is always available, and vice versa.
In this age of easy access to data on the Internet, it can be difficult to interpret information about available real estate. Sometimes, a property is listed as vacant but might not be available due to a pending lease. Or, a property might be available but not vacant when the tenant remains in a space they will be vacating. A knowledgeable broker with experience in current market trends and transactions can be invaluable in analyzing the market and providing informed guidance.
Myth 3: A marketing strategy that worked for one property will work for all properties.
The most effective property marketing strategy will always be tailored to the individual development and its potential tenants. A high-risk, unique marketing campaign that might steal the spotlight within the creative community may backfire within the professional services industry. While there are some marketing techniques that tend to be useful across the board, a complete marketing strategy skillfully pieces together multiple initiatives to catch the attention of the targeted market. Involving property marketing professionals to recommend the best budget and strategy can save time and money with solutions tailored to fit each situation.
Myth 4: Lease audits are a waste of time.
JLL finds problems with approximately 50% of audited leases. If operating expenses seem too high, a broker can help review the lease to determine problem areas and resolve liability questions – this could result in significant savings for a business. Leases are complex legal documents with terms and conditions that can be easily miscommunicated to involved parties.
Myth 5: All Property Managers do is collect rent.
Property Managers are responsible for collecting rent, but they do so much more to make a property successful. Some of their many responsibilities include:
• Monitoring maintenance and scheduling necessary repairs
• Paying bills and allocating resources
• Assisting tenants and addressing concerns
• Marketing and showing vacant spaces
• Screening potential tenants
• Maintaining building records, budgets, and tax documentation
• Ensuring legal and code compliance
It is always recommended to hire a professional in the industry to assist you in navigating your real estate decisions. Visit our website for more information.