Point Properties Ltd

4 Benefits of using the same real estate company for leasing and property management

Whether you are purchasing a new property or considering changing services providers, it is important to consider the efficiencies of using the same firm for leasing and property management services. Easier Lease Negotiations Communication between a property manager and a leasing broker is essential during the lease negotiation process. Having property managers and leasing brokers that work for the same company can greatly facilitate the lease negotiation process. For example, a property manager might have good ideas on how to expedite the construction process should a new tenant need in the space sooner than later. There are quick-ship items that could be ordered or construction work that could be done after the tenant moves in. Additionally, because of their constant communication with the building tenants, they may know that the existing tenant would be able to vacate early, allowing construction to begin sooner. These are just a few examples of ways management can weigh in on how to accommodate tenants’ needs and set property expectations ahead of time. Additionally, by having your property managers and leasing brokers within the same firm, reasonable expectations with regard to leasing and management requirements can be set from the beginning so there are no…

Property fund Laptrust Imara I-Reit made a net profit of Sh99.6 million in the six months ended June, marking its first financial report since its listing on the Nairobi Securities Exchange. Laptrust said it had made Sh167.1 million in rental income from its property portfolio which it valued at Sh6.8 billion in the review period, while utilities and interest income contributed Sh36.2 million to the fund’s revenues. Rental income would give the Reit an annualized rental yield of about five percent. Properties that are held under Imara include CPF Metro Park, CPF House, Pension Towers, Freedom Heights Mall and Service Plot, Man Apartment and Nova Eldoret. The Reit is however not distributing any of the net earnings to unit holders (shareholders) on an interim basis, citing the ongoing transition following its listing in March. “Due to the ongoing transition period, the Reit manager has not declared any interim dividend for the period ended 30th June 2023,” said Laptrust. The Laptrust Reit is one of two listed on the NSE—the other being ILAM Fahari I-Reit—while property developer Acorn has issued development and investment Reits built on its student units. The Acorn Reits are unlisted but trade on the over-the-counter (OTC) market….

I have read your series on leasing and licensing office spaces. It is my long-term plan to purchase my own office space. How do I go about due diligence given the many scams in the market? Collins Dear Collins, below I will set out some factors to consider when doing due diligence for purchasing a property. Once you have identified a suitable location and are ready to transact then this is where the legal process begins. It begins by identifying suitable premises and doing a site visit to inspect the premises. Once you have done the site inspection and are satisfied then the next step is to do due diligence. Request a copy of the title deed and carefully check the title. It will reveal details such as the tenure of the land. Is the land a freehold or a leasehold? A leasehold means that the government has granted the owner a long-term lease, which is usually renewable. If leasehold you will need to check the remaining term of the lease. For example, if the title says 99 years from 1924, this means that the lease term has expired. The owner will, therefore, need to apply for a renewal. A…

Centum Real Estate has posted a net profit of Sh174 million in the year ended March, reversing a restated net loss of Sh486.9 million recorded the year before. The return to profitability was largely helped by a large unrealised gain on its investment properties. The property developer, a subsidiary of listed Centum Investment Company, saw the gain in its real estate assets more than quadruple to Sh2.1 billion from Sh513 million. “The group recorded property valuation gains … on the back of extensive infrastructural investments within our land banks and accelerated development activity by third party development,” Centum RE said in a statement. The company’s revenue from the sale of residential units increased to Sh1.9 billion from Sh1.8 billion. Gross profit from these transactions, however, fell to Sh285.6 million from Sh334.7 million attributed to higher cost of sales. “Of the 895 residential units that have been completed, an additional 222 met the revenue recognition criteria and were recognised during the year ended 31 March 2023,” the company said. “We expect revenue and profit from the balance of these units to be booked in the financial year ending 31 March 2024.” The real estate company saw its operating expenses surge to…

Investing in real estate is a popular strategy for people saving for retirement especially among the so-called FIRE brigade, who are racing for early Financial Independence and Retirement. Not a bad idea to own some real estate. Great if you have 10 percent down and are okay with leverage financing. For now, though, that may not work very well. Financing used to be cheap. It isn’t anymore, at least not right now with rising rates. But even if you did, betting in the right direction with borrowed money is much like buying stocks with borrowed money. Sometimes it works really well. Other times, it’s a total wreck. But if you’re thinking of following suit and investing in real estate, don’t just answer to TV ads pushed by real estate firms, check out the market too. Real estate investment trusts (REITs), which are listed entities that invest in rent-yielding assets and distribute most of their income as dividends, are another alternative. Part of the logic behind the REITs is simple. The trusts are required by law to pay out 90 percent of their taxable income in yield. That’s appealing to those who may not get that much income from some mutual…

Banks holding thousands of title deeds as collateral for loans have been thrown into a panic after a landmark Supreme Court ruling that handed back to the public a parcel of land that had changed hands several times from the late President Daniel arap Moi since 1989. The country’s apex court in April said not even the passage of over 30 years could stop grabbed public land that had undergone multiple successions in private hands reverting back to the public. The ruling, which also raised the bar on the level of due diligence required from buyers and the need to comply with the land acquisition process, looks set to impact banks holding such title deeds as securities for loans worth billions of shillings. The bench of five judges of the Supreme Court said the land in Mombasa having beenirregularly obtained by Mr Moi meant the former President, now deceased, could not pass any valid title deed to any subsequent buyer and that all other successions that followed were illegal. “Essentially, the Supreme Court is placing the burden of searching the entire history of the land on the buyer,” said Kimani Njane, a corporate and commercial lawyer who is also a…

The real estate industry is both highly competitive and immensely rewarding. To succeed and thrive in this dynamic field, it’s essential to have a growth-oriented mindset and employ effective strategies. Whether you’re a seasoned real estate professional or just starting out, this article presents valuable insights and actionable tips to propel your real estate business to new heights. Build a Strong Network: One of the foundations of success in real estate is establishing a robust network. Invest time and effort in building relationships with potential clients, fellow agents, brokers, contractors, and industry influencers. Attend networking events, join professional associations, and leverage online platforms to expand your reach. A strong network can provide valuable referrals and collaborative opportunities, helping you tap into new markets and grow your client base. Leverage Digital Marketing: In today’s digital age, having a strong online presence is crucial for growing your real estate business. Develop a professional website that showcases your listings, provides useful resources for buyers and sellers, and highlights your expertise. Utilize social media platforms like Facebook, Instagram, and LinkedIn to engage with your target audience, share valuable content, and advertise your services. Employ search engine optimization (SEO) techniques to improve your online visibility…