Real Estate Research Managers: Job Profile and Requirements

Research managers have now become so important in property market that their views are almost the starting point of any and all types of real estate transactions. What do they do? In fact, real estate developers, property managers, property brokers, property advisers, agents, counselors, appraisers, finance and investment professionals, property investment analysts, etc. all depend … Continue reading “Real Estate Research Managers: Job Profile and Requirements”

Research managers have now become so important in property market that their views are almost the starting point of any and all types of real estate transactions.

What do they do? In fact, real estate developers, property managers, property brokers, property advisers, agents, counselors, appraisers, finance and investment professionals, property investment analysts, etc. all depend on the data provided by research managers.

Research managers collect primary and secondary data, views, actual and potential transaction details etc., analyze these data by the use of economic and statistical tools and make formal conclusions which in turn help real estate professionals in making their own decisions about sales, purchase, investment, portfolio adjustment, site selection, price appreciation and depreciation etc.

For example research managers collect relevant primary and secondary data related to sales and leasing of commercial property in a particular market in a given time period. Similarly, they find the approximate number and areas of ready to move commercial property that is expected to be released in the market in next three months. They also meet the potential buyers of commercial property and potential clients interested in taking commercial property on lease to understand their requirement in next few months (for example next three months). After getting all the relevant data, they analyze and interpret the data to make it usable for real estate professionals. Users, in turn, use the research results to understand the market, especially the way market will move in next few months. Based on the research conclusions, real estate professionals also decide their pricing strategy, leasing rates, selling & investment strategies etc.

Overall, research professionals are responsible for market analysis, forecasting, trend analysis, preparing market reports, analysis of user behavior etc. in different markets and segments of real estate.

Working Environment They are required to work for eight hours per week. However, for entry and junior level research professionals, only a part of their job requires them to remain in office. Otherwise, most of their requirement is outside of their office and have to work beyond eight hours. Research managers work with different types of professionals from across different sectors and specialties.

Employers Research managers work for developers, international property consultants, property brokers & advisers, large property agents, property venture capital funds, private equity investors, housing finance institutions etc.

Employment Prospect Since the Indian property market is on growth path and international property developers, consultants, investors, lenders etc. are setting shops in India and since the concept of commercial transaction in the Indian market is growing, there is huge growth prospect for research managers in the Indian property market in the time to come.

Education Bachelor’s or master’s degree in real estate, urban planning, architecture, economics, statistics etc. is preferred.

Knowledge, Skills, and Personality Traits
• Ability to understand, interpret and analyze data, providing insights into market trends
• Excellent communication skills
• Advanced Microsoft Excel and PowerPoint skills
• Ability to learn internal and external data delivery systems (PropTools, MLS, etc.)
• Ability to work independently
• Analytical skills
• Knowledge of statistical tool, techniques and software

Compensation In terms of compensation, research professionals command a good premium in the market.

Tips for entry: In India, IDS National Institute of Real Estate Management (NIREM), and EduMark Realty Education Services offer short term as well as long term courses in real estate research. However, there are many other institutes that offer courses in related areas such as economics, architecture, planning etc.

How to Maximize Profitability in Real Estate Management

We will provide a brief examination into maximizing profitability for apartment complexes. This will be a short intro into the focus and goals that are necessary to extract profit from rental complexes. It is imperative to produce an annual budget as a starting place for any property. Every property has fixed expenses and variable expenses that need to be closely watched, which are accessed from the operating bank account. You also need to provide a non interest bearing account for all deposits and a capital improvements account. So we have three accounts set up, an operating account, non-interest bearing account and capital improvements which the property manager along with the owner need to determine what percentage of monthly rent they are comfortable with setting aside into the account for future repairs and preventative maintenance. Any property management team should work closely with all property owners to develop a budget that focuses on these three accounts. Obviously the depository account is a no brainer and is legally required but the other two accounts need further investigation.

So now that our accounts are set up we should understand that we need to manage two basic things; income and expenses. Income comes in the form of revenue. Revenue is essentially any means of producing capital. All rent paid is included in income, as well as late fees, penalties, laundry change and any other obscure forms of income your property may produce. The bulk of income for residential real estate management comes from rental income. Great, now we understand what income is and where we acquire it. Now let’s focus on expenses. We have two primary expenses, fixed and variable. Fixed expenses are those that are essentially “fixed” meaning we incur these expenses every month. Fixed expenses normally include a mortgage, water bill, electric bill, cable bill, landscaping and management fees just to mention a few. Variable expenses are those that vary from month to month. Variable fees include such things as maintenance expenses, capital expenditures, legal fees and professional fees just to provide a few examples. So now that we understand their is a difference between fixed and variable expenses we must note that fixed expenses should be planned for an paid accordingly every month. Your cash flow statement must provide sufficient flow in order to pay your fixed expenses every month and have sufficient flow to save enough money in your separate capital improvements account so you can pay your variable expenses.

Real Estate Management – An Introduction

People all over the world invest in real estate for different reasons. One may want to buy his dream house after years. This desire would require making a real estate investment. At times, a small investment in real estate also gives high returns such as in a situation when people sell a property at a price higher than its cost price. People also use extra properties to earn a income supplement by renting them out. In some cases, Americans settled in other parts of the world also invest in property here and let it out. These properties give rise to Real Estate Management.

These managers take care of the properties that were bought with an objective of resale and the owners are willing to wait for a few more years to let the prices go up. Such properties are rented out naturally.

The reasons for a need for Real Estate Management may differ from one property to another. But every property requires a manager. Lots of people in the US consider the letting out business to be so full of hassles that they never let out their property. Such cases can be very easily handled by professional property management services.

Real estate management is a challenging profession. Following are a few constraints that make the job tedious –

* Time consuming – Property management demands time. Most of the landlords being working professionals are short on time. This would entail a lot of tasks associated with the property that would be very time consuming. These may include – bathroom repair, kitchen remodeling, or complete house renovation etc.

* Levies great responsibilities – A landlord’s job does not end up at finding tenants and collecting rent from them. It requires managing the whole property. It entails ensuring utmost comfort to the residents. All these things naturally levy great responsibility which can be best taken care of by a professional. This is because every property requires periodic repairs. The professionals in the real estate field sense these needs well and ensure timely maintenance like polishing, painting, whitewash etc. whenever the new tenants move in with the current ones vacating the property.

* Involves intricate legalities – Real estate management involves a lot of paper work. Right from the tenancy agreement to credentials verification of the tenants, all employ tough legal procedures. These can also be undertaken by management professionals in the best possible manner.

This naturally is not the cup of tea for people who are already employed. That is why real estate experts advise to let out the properties to real estate management professionals. These managers carry out all the necessary activities at the property on the behalf of the landlord. Although this does reduce the income by a certain amount that goes as commission to these managers, yet it is truly worth it.

The most challenging task however remains as that of choosing the right management firm for your property. An internet search may give you numerous names dealing in the business. But one must consider the following few points before hiring one –

1. For how long has the firm been in business?
2. Are they comfortable in reference checks?
3. Do they have a satisfactory client base?
4. Can the client meet any previous or current client of the firm?
5. Can a property managed by the firm be visited by the client?

Remember, a professional Real estate management firm would not only strive to ensure occupancy for your property but would also ensure you receive your rent on time.