Tag Archives: property

The Secret Sauce to Success in Property Management

19 Sep

Source: TSI

property management

The property market will continue to be volatile in 2019.

The ups and downs of the real estate market could make anyone shudder. Technology has added an interesting influx to the mix, and in both residential and commercial real estate, software has proven to be a big disruptor. Despite the swirling chaos in most markets around the country, there are a number of trends that savvy real estate agents, property management, and homeowners’ association management companies will be able to look toward to improve their business. This article will take a look at a few of them.

Property Management Trends 2018/2019

For investors just looking to get into the property management game, we have a few strategic tips that should govern your expansion into the marketplace.

The first trend is that overall market volatility will continue. In large markets, there is an overwhelming need both for new housing and affordable units. This is always a risky venture, but particularly in light of consumer trends that show consumer debt is expected to increase to $4 trillion in the United States by the end of this year. A corresponding increase in defaults should also be expected. This elevates risk for property management firms.

The second trend to mention is that investors, particularly new entrants into the real estate market, should set clear investment goals with a measurable ROI. This is particularly important in light of increasing market volatility and predicted consumer debt. If 2019 brings higher loan defaults on everything from student loans to housing debt, this will put increasing pressure on investors’ cash flow. Setting long-term investment goals that include a specific market rate of return will be important for anyone capitalizing on the real estate industry in the future. This includes mapping out accounts receivables and a clear process for handling past due collections.

Predictive analytics will play a part in the future of buying and selling properties.

The third trend is, of course, technology. Not only will technology continue to impact real estate marketing, it will change how we collect fees, negotiate, and communicate with our patrons. The Close suggests some tech-centric trends that we’ll see as we near the end of 2018 and move into 2019:

  • Online platforms like Zillow will leverage new and existing relationships with real estate agents, property managers, and investors.
  • Mobile-first will be the new strategy for just about everyone in every market niche – not just real estate. It seems new strategies for bill payment, property maintenance requests, and past due collections, are all moving to the smartphone, which is exactly where our customers now live. When you realize that a millennial checks their smartphone an average of 150 times a day, you’ll start to understand why new real estate strategies tied to these devices will impact every area of your business in the future. Enabling smartphone payments as part of your rent and past-due collections process is a necessity for the future.
  • Big data will impact all areas of our lives. We already use big data algorithms for lead generation, appraisal, and investment purchasing decisions. But what about big data to determine the ability and likelihood of a past-due debtor to bring their account current? Predictive analytics will likely worm its way into the real estate market in new and interesting ways in 2019.

In 2019, digital trends will continue to impact the property market in the United States. The secret sauce to success will continue to be developing new strategies to capitalize on these trends to achieve market success.

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Wanting to maximize your recoveries on past due rent or fees? TSI has made extensive investments in our information security, compliance controls, and data analytics to make sure we stay ahead of the curve and provide the best possible solutions for our clients. CollectX, our proprietary data analytics platform, is a great example of our investments. This unique tool tells us how likely a consumer is to pay off a debt and what it will take to get them to pay it, which in turn, provides our clients with more recovered revenue, faster, and at a lower overall cost.

Contact me today at 888-780-1333 to see how we can improve your business bottom line.

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4 Tax Tips For Commercial Building Owners

13 Sep

Recently, the regulations for commercial property owners were overhauled in one of the most dramatic changes to the tax law in years.  The Tangible Property Regulations in conjunction with the Tax Cuts and Jobs Act have major economic benefits for building owners as well as some serious compliance issues.

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Properly applying these new U.S. tax code standards can help you capture economic opportunities to the tune of millions in tax savings that flow from your business to your personal taxes.

I would be happy to work with you and your tax professional to make sure you are taking the greatest advantage of these new tax laws.  CSSI, a company that I represent, can be your calculation experts for the following

  1. COST SEGREGATION – The U.S. tax cost method of identifying and classifying building components that allow you to accelerate depreciation and generate additional cash flow. An engineering-based cost segregation study is the basis for allowing you to capture many of the tax saving opportunities below and it helps you maintain U.S. tax code compliance moving forward with these regulations.
  2. BUILDING SYSTEMS VALUATION – An engineering-based study that will identify building systems and structural components.  Going forward every expenditure cannot be expensed.  The new regulations give very specific instructions on whether expenditures should be capitalized as an “improvement” or expensed as a repair.  We will provide the calculations that your tax professional will need to make these important decisions.
  3. CAPITAL TO EXPENSE “REVERSAL” OPPORTUNITY – Building owners may now expense previously capitalized costs and expense them in the current year by applying the new regulations to prior years.  For example, we helped a client receive $1.1 Million in tax savings on one of his properties through this method.
  4. PARTIAL ASSET DISPOSITION (PAD) – Renovate in the current tax year?  Thinking of an LED lighting upgrade?  A PAD allows you to write down the basis of what you removed and the costs for the removal and disposal of those items.  You can receive a tax deduction in the current year but it is a “use it or lose it” opportunity.  Fail to capture it in the current tax year and you lose the ability to write it down.  Both capital to expense reversals and PADs yield a permanent tax savings at the time of the sale by reducing recapture costs.

Let me provide you and your tax professional a no-cost, no-bligation analysis of the benefits you may receive and the cost for this type of study for your property.

Return the following information, and I will prepare your analysis immediately.

 

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BIG Tax Savings for Commercial Property Owners

9 Apr

If you own or lease commercial property and pay taxes, here is a great way that you can potentially save BIG on your taxes through an IRS-approved cost segregation study.  This is another “Cash Flow Minute” by David Wiener, “Mr. Cash Flow,” CEO of Cash Flow Strategies, Inc.  Find this new series of videos here, or visit the Cash Flow Strategies, Inc. web page at: http://cashflowstrategies.us

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