Author: Joseph Gozlan, Eureka Business Group | Published: 02/13/2023

Finding the perfect commercial property can be a challenging task. It requires careful planning, research, and attention to detail. However, with the right approach, you can find the property that meets all of your business needs and exceeds your expectations. In this blog post, we’ll explore the art of finding the perfect commercial property and the steps you should take to ensure success.

Step 1: Define Your Business Needs

Before you begin your search for a commercial property, it’s important to determine what your business needs are. This includes things like the size of the property, the location, the type of property, and the amount of parking available. It’s also important to consider any future growth plans you may have for your business, as this will impact your property needs over time.

Step 2: Research the Market

Once you have a clear understanding of your business needs, it’s time to research the market. This involves looking at various properties in the area, as well as gathering information about the local economy, demographics, and real estate market. The goal of this step is to get a good understanding of what is available in the market, what the prices are like, and what the trends are.

Step 3: Create a Budget

Before you start making offers on properties, it’s important to have a clear understanding of your budget. This includes the amount you’re willing to spend on the property, as well as any additional costs, such as renovation expenses, property taxes, and utilities. Having a budget in place will help you stay focused on your goals and avoid overspending.

Step 4: Work with a Real Estate Agent

Working with a real estate agent can be incredibly helpful in finding the perfect commercial property. They have a deep understanding of the local market and can help you navigate the complex real estate process. They can also help you negotiate the best deal possible, as well as guide you through any legal or financial considerations.

Step 5: Tour Properties

Once you have identified several properties that meet your criteria, it’s time to tour them. This will give you a chance to see the property in person, get a feel for the space, and assess the condition of the property. It’s also a good opportunity to ask questions and get more information about the property from the owner or real estate agent.

Step 6: Negotiate the Deal

Once you have found the perfect commercial property, it’s time to negotiate the deal. This involves working with the owner or real estate agent to agree on the terms of the sale, including the purchase price, closing date, and any contingencies. It’s important to have a clear understanding of what you’re agreeing to and to be prepared to compromise in order to reach a mutually beneficial agreement.

Step 7: Close the Deal

Once the deal has been negotiated, it’s time to close the transaction. This typically involves transferring ownership of the property, paying any necessary fees, and finalizing any necessary legal or financial documents. The closing process can be complex, so it’s important to work with a real estate agent or attorney to ensure that everything goes smoothly.

Conclusion

Finding the perfect commercial property requires careful planning, research, and attention to detail. By following these steps, you can ensure that you find the property that meets all of your business needs and exceeds your expectations. Whether you’re just starting out or expanding your business, taking the time to find the perfect commercial property will be worth the effort in the long run.

Author: Joseph Gozlan, Eureka Business Group | Published: 01/30/2023

Is this the year multifamily operators stop charging back for utilities? Multifamily properties have unique challenges when it comes to utility billing. In the last 6-8 years, property operators have used a Ratio Utility Billing System (RUBS), where residents are billed for their individual usage of utilities such as electricity, gas, water, and waste management. However, recent trends show that more multifamily operators are opting to go back to the fixed utilities fee system.

A fixed utilities fee is a flat rate charged to residents for their use of utilities. This fee is based on the average consumption of utilities in the property and is charged to residents regardless of their actual usage normally based on the unit size and how many occupants are in the unit.

There are several reasons why multifamily property owners are making the switch from chargebacks to fixed utilities fees.

1. Simplicity and Convenience: One of the primary advantages of fixed utilities fees is the simplicity and convenience of billing. Unlike chargebacks, which require operators to keep track of the property usage and submit meter readings, fixed utilities fees are a straightforward, predictable cost. This eliminates the hassle of managing and billing for individual utility usage, freeing up operators to focus on other aspects of operations.

2. Increased Revenue: Another benefit of fixed utilities fees is increased revenue for the property owners. With a RUBS chargeback system, property owners are normally dependent on 3rd party vendors to accurately calculate the usage, which can result in lost revenue if usage is underreported. On the other hand, fixed utilities fees are based on average usage and are not subject to the same inaccuracies. This results in a more consistent and predictable stream of revenue for property owners.

3. Improved Cash Flow: Fixed utilities fees also improve cash flow for property owners. Unlike RUBS, which can result in uneven payments throughout the month, fixed utilities fees provide a consistent source of income that can be relied upon to meet operating expenses.

4. Reduced Maintenance Costs: Fixed utilities fees can also help reduce maintenance costs for property owners. In a RUBS system, residents may be reluctant to report higher than normal usage, which can result in maintenance issues going unnoticed. With fixed utilities fees, property owners have a better understanding of the overall consumption of utilities and can proactively address any issues before they become a larger problem.

5. Compliance: Implementing a RUBS system is complicated because of all the rules and regulations that may (and often do) differ between state, counties and municipalities leading to the fact most multifamily operators choose to hire 3rd party vendors to take on that responsibility. 

6. Enhanced Resident Satisfaction: Finally, fixed utilities fees can enhance resident satisfaction. In a chargeback system, residents may be frustrated by unexpected spikes in their utility bills, or feel that they are paying more than their fair share. Fixed utilities fees provide residents with a predictable cost, which can lead to a more positive living experience.

While fixed utilities fees have many benefits for property owners, there are also some drawbacks to consider. For example, residents who use less utilities than average may feel that they are paying more than their fair share. Additionally, if property owners do not accurately estimate the average consumption of utilities, fixed utilities fees may be too high or too low, which can result in lost revenue or increased costs.

Despite these potential drawbacks, the trend towards fixed utilities fees in the multifamily property industry continues to grow. Property owners who are considering making the switch from RUBS to fixed utilities fees should carefully weigh the benefits and drawbacks and consult with a professional to determine the best option for their specific property and residents.

In conclusion, multifamily property owners are increasingly opting for fixed utilities fees over RUBS and chargebacks for their convenience, increased revenue, improved cash flow, reduced maintenance costs, compliance and enhanced resident satisfaction. While fixed utilities fees may not be the best option for every property and every resident, they provide many benefits that make them an attractive option for many property owners.