Tip of the Month - April, 2018

Neighborhood Market Analysis
Physical Condition of Properties

Source: Dearborn Real Estate Education
BY: Robert C. Kyle & Floyd M. Baird, RPA/SMA

Generally, property management is carried out at the local level.  To determine the optimum income that can be realized from a
building, the property manager must first determine the economic climate of his or her neighborhood real estate market.  Neighborhood analysis should begin with a tour of the area.  The manager should assess seven major factors in the neighborhood market area: Boundaries, land usage, transportation, utilities, economy, supply and demand, neighborhood amenities and facilities.

Evaluating the data: Once the regional and neighborhood market surveys are complete, the manager must analyze the information, keeping in mind the special features of his or her particular type of property and needs of potential tenants. 

Exterior appearance: The appearance of the building is important.  Prospective tenants form their initial impression of the premises based on what they see as they approach the building.  With curb appeal in mind, the property manager’s inspection should begin with the overall outward appearance of the structure, including its age and style as well as the condition of its walkways and landscaping.  If the building does not present as pleasing a fašade as others in the area, he or she should suggest corrective measures to improve the initial presentation of the premises.   

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This web page was updated on 04/02/2018.