A property management plan is a guideline used in the running of real estate to maximize productivity. Documented policies are crucial in the running of business (Blyth, 2009). This plan seeks to give an outlay of the management of rentals in the outskirts of Oregon. The property will be discussed in details, the financial aspect of the rental business will also be considered. The plan will provide a basis for running these units.
Property Description
The rental property is located in Eugene, Oregon. The rentals are located in Cobourg Hills residential area. This location makes the property prime because of the proximity to the city and the University of Oregon. This property is a residential rental building consisting of twenty units measuring close to 600 square feet each.
The buildings are designed with modern structural designs to make them appear urbane. The property was initially meant to serve as a hotel, but the rental value of the property made the owners change it to offer units for rent. All units cover 600 square feet of space with two bedrooms in each unit. There are two and a half baths and islands in all the kitchens. The units come with a small laundry room. The extra room is also available in which the tenants can choose to use it as a family play room, a dining room or a home office.
Evaluation
The property goes through a thorough inspection every month and before any new tenant moves in. The assessment process involves inspecting the units for any damage that needs repair. The rental occupancy numbers are also assessed to ensure that there is close to full occupancy at all times. Finally, the location value is evaluated
Repairs
There was minimal repair needed. The bathroom sink in one of the units had been tampered with by the previous tenant and would need fixing. Slight repairs were also done on the water heating system of another unit. Repairs to the property are done by a full-time groundskeeper while major repairs are handled by a hired crew that inspects the premises every month.
Rental numbers
The number of tenants is kept in the official business documents, and this is used to analyze the number of occupied units and keep track of the current tenants. The property aims at maintaining the number of tenants in the premises above a certain threshold. Ideally, the number of occupied units should be above two-thirds. Currently, seventeen units are occupied while three are empty.
The rentals are located in uptown Oregon in Coburg hills. The property is in proximity to many social amenities such as the University of Oregon, Oregon shopping mall and a hospital that is only two miles away. This location is ideal because a lot of students and staff look for quality living spaces nearby campus.
Finances
The property is under a mortgage plan that includes monthly payments for eight years. The mortgage payments are made after the tenants have paid rent every month. The property is worth approximately $2.4 million under the current real estate market. The income generated amounts to over $300000 at maximum occupancy and after all the staff is paid.
Advertising
Advertising efforts include the use of commercials on the local TV station, street ads on benches and buses. The property is also up on major real estate listings in the state of Oregon.
Laws
The property strictly adheres to the landlord-tenant laws of the state of Oregon. Full disclosure to the tenant and a properly understood smoking policy are evidence of the same (Huber, Lyons, & Pivar, 2010). The procedures for paying rent, handling overdue payment and leasing information is in compliance with all the federal and state laws.
Maintenance
There is a maintenance staff available to the tenants of the property. In addition to the staff, there is also a team on call that can handle major emergency repairs.
Staffing
Staff in the rentals includes a live-in landlord and maintenance team of three trained personnel. There is a manager who oversees all operations and finances. All the members of the staff go through a thorough vetting process before they are hired. An employee must display high professional standards in the dispensing of their duties.
Insurance and Licenses
The property is insured against any fire, burglary and damage to property done on its ground. There is also an insurance cover on the land on which the property is built on. The property is licensed under the Rentals law and business operations committee of the state.
Proposals
In order to improve the business, the operation should focus on three market areas. The first is the student group. Most of the student hostels are run down and offer poor quality services. A student population of over 100000 provides a ready market for the rentals. The second group is the local professionals who represent about 12,000 potential tenants. The third group is that of the staff of the university being 7000 potential new tenants.
References
Blyth, M. (2009). Business continuity management: Building an effective incident management plan. Hoboken, NJ: J. Wiley & Sons.
Huber, W. R., Lyons, A., & Pivar, W. H. (2010). Property management. Covina, CA: Educational Textbook Co.
