Mid Atlantic Real Estate Journal — Property Management — February 10 - 23, 2012 — 3B
www.marejournal.com
P ROPERTY M ANAGEMENT
any people are talk- ing about how tough e c onomi c t ime s By Chris Cervelli, CCIM, Michael Cervelli Real Estate/Cervelli Management Corp. Property Management in tough times M housing is a great way to maintain consistent income levels. You don’t have to rely likely to be involved in crimi- nal activity. These tenants have a personal stake in the
Even in these difficult times, owners of investment property can do well by main- taining 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 acknowledged as one of Northern New Jersey’s most experienced agencies specializing in in- vestment real estate sales.
Aimed at providing profes- sional brokerage services to private investors and finan- cial institutions involved in income-producing multifam- ily properties and shopping centers, the company has posted steadily increasing sales results. Michael Cer- velli Real Estate is known for its’ unparalleled reputation of honesty, integrity, and experi- ence in the investment real estate industry. Chris Cervelli, CCIM, Michael Cervelli Real Es- tate/Cervelli Management Corp. ■
have affect- ed real es- tate values. An underly- ing effect is the negative financial 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.
on the tenant to pay the full amount of the rent. Very of- ten, these organizations will pay a large portion if not the entire rent. In turn, tenants who receive assistance have been pre-screened by these organizations and are less
well-being of a property be- cause they need housing and desire to live in such a com- fortable, safe environment. These tenants are often of great assistance to the land- lord, acting as 24 hour “eyes and ears” at the property.
Chris Cervelli
Generally those on the low- er rungs of the socio-economic ladder are hit the hardest during depressed times. As a property manager, I have seen a marked increase in crime in and around multi- family buildings. Unemploy- ment makes people desper- ate, desperation 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 landlords. 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 market 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 cre- ate a clean and safe “curb appeal” to those looking for housing. Another proven technique for tenant reten- tion is proper screening dur- ing the application process. Filling buildings with ten- ants who are not transient in nature, have good credit, and positive work references will lead to overall 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 of organizations that provide assisted housing. Assisted
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