Mid Atlantic Real Estate Journal — Mid Year Review — June 22 - July 12, 2012 — 9B
www.marejournal.com
P ROPERTY M ANAGEMENT By Chris Cervelli, CCIM, Michael Cervelli Real Estate/Cervelli Management Corp. Property Management in tough times
M
any people are talk- ing about how tough economic times have
of organizations that provide assisted housing. Assisted housing is a great way to
these organizations and are less likely to be involved in criminal activity. These
property. Even in these difficult times, owners of investment property can do well by maintaining their buildings at or above levels of compet- ing properties, conducting proper tenant screening, and enlisting the help of local assistance programs to refer qualified candidates. Founded in 1983, Michael Cervelli Real Estate, head- quartered in North Bergen, New Jersey, is acknowl- edged as one of Northern New Jersey’s most experi- enced agencies specializing in investment real estate
sales. Aimed at providing professional brokerage ser- vices to private investors and financial institutions involved in income-produc- ing multifamily properties and shopping centers, the company has posted steadily increasing sales results. Mi- chael Cervelli Real Estate is known for its’ unparal- leled reputation of honesty, integrity, and experience in the investment real estate industry. C h r i s C e r v e l l i , CCIM, Michael Cervel- li Real Estate/Cervelli Management Corp. ■
a f f e c t e d real estate values. An underlying effect is the negative fi- nancial im- pact to prop- erty owners and manag- ers.
Even in these difficult times, owners of investment property can do well by maintaining their buildings at or above levels of competing properties.
maintain consistent income levels. You don’t have to rely on the tenant to pay the full amount of the rent. Very often, these organizations will pay a large portion if not the entire rent. In turn, ten- ants who receive assistance have been pre-screened by
tenants have a personal stake in the well-being of a property because they need housing and desire to live in such a comfortable, safe environment. These tenants are often of great assistance to the landlord, acting as 24 hour “eyes and ears” at the
Chris Cervelli
Generally those on the lower rungs of the socio- economic ladder are hit the hardest during depressed times. As a property man- ager, I have seen a marked increase in crime in and around multi-family build- ings. Unemployment makes people desperate, despera- tion may lead to crime, and crime in general can bring an area down. If people don’t work and can’t afford their rent, it may result in these individuals being evicted or turning to crime in order to feed themselves and their families. The result is major vacancy problems for land- lords. A decrease in or lack of rental income means, 1) landlords don’t have money to pay for their mortgage and operating expenses and, 2) additional expense to mar- ket and renovate apartments so they can be rented. This can be a downward spiral in which everyone loses. What is the solution? First, a preventive maintenance program will help combat this problem by dealing with small issues as soon as they come up. This will result in an overall better quality of life for tenants, and will create a clean and safe “curb appeal” to those looking for housing. Another proven technique for tenant retention is proper screening during the application pro- cess. Filling buildings with tenants who are not tran- sient in nature, have good credit, and positive work references will lead to over- all stability, which creates a balanced and forecasted income. The cream always rises to the top: if you have a properly managed and well maintained property, it will be easier to keep it that way and attract the right tenants. Top-of-the-market proper- ties also draw the attention
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