Being successful in commercial real estate requires unwavering attention to sound business practices. Whether you are a huge real estate investment firm or a first-time apartment building owner, the goal is the same: Maximize revenues and minimize expenses. We at CREM Management also like to see it as optimizing your asset while ensuring its longevity. 

CRE (Commercial Real Estate) investors want to profit from the property’s revenue, which will increase the return on their investment. Overall, the results will bean elevated value and a maximized resale figure. Since its inception in 2009, CREM Management in Southern California has helped our clients accomplish their goals. This post will concentrate on how CREM Management’s professional property management services apply to the expense side of the equation.

Revenues – Expenses = Profit

EXPENSES RUN THE GAMUT

Expenses run the gamut from massive, obvious, and expensive problems (“Hey, the side of the building is cracked!”) to smaller (not-so-obvious) outflows from your bottom-line profits. Sometimes, it’s a teeny faucet drip or an invisible plumbing leak. However, either of these left unattended, could add up to gallons of water loss before you even know it.

By implementing the following tactics, CREM Management helps CRE property managers effectively reduce expenses and improve the property’s overall financial performance. Tenants can help, too!

The best property managers can help investors and landlords reduce expenses in several ways. This way, property management gets done efficiently, property values are preserved and enhanced, and critical tasks are handled—without the headaches and hassles of DIY management.

1. Expense tracking: Keeping meticulous records of expenses and conducting regular expense audits can help identify areas where costs can be reduced or eliminated. Especially in a high-cost area like Southern California, the constant tracking of everyday expenses can spare investors the surprises that can make a bottom line melt quicker than an ice cream cone in summer.
2. Technology utilization: Of course, the twenty-first-century answer to expense tracking is to use property management software to streamline operations, reduce administrative costs, and improve efficiency. CREM Management’s property management software program tracks everything and is kept current. Nothing gets by us.
3. Preventive maintenance: Regular, scheduled inspection and maintenance of property systems can identify and address issues early, preventing costly repairs in the long run. Waiting for things to break is a recipe for catastrophe. CREM Management’s philosophy is to be proactive, which includes dedicated attention to vendor management.
4. Vendor management: Negotiating services with vendors and contractors can help property managers secure competitive pricing and reduce maintenance and repair costs. As part of our owner services, CREM Management pays all vendors on behalf of the property owners. We pay our trusted providers promptly, compile vendor/contractor information continuously and automatically through our property management software program, and invite owners and landlords to review the data anytime. Our property managers adhere to strict standards of review when hiring and assessing a vendor’s work.
5. Energy efficiency: Implementing energy-saving measures such as installing programmable thermostats, energy-efficient lighting, and improving insulation can significantly lower utility costs. This is a collaborative effort between landlords and their tenants. It’s a win-win for the Los Angeles and Orange County, California CRE investors, the tenants (passed on as stable rental rates), and the planet.
6. Tenant relations: Retaining good tenants can lower vacancy rates and turnover costs, ultimately saving the property manager and the owner/landlord money.  Along with our streamlined apartment turnover services and ten-point tenant screening module, we at CREM Management have an excellent track record in handling unit turnover.  We realize that time is money and pride ourselves in quick, diligent, and efficient move-outs/move-ins. With in-house counsel, our lease documents are comprehensive, compliant, and designed to limit liability at every turn. 

TINY CHANGES REAP BIG SAVINGS

Changes don’t (and should not) have to be made all at once! In one month or one quarter, property managers can implement energy-efficient measures such as installing programmable thermostats, LED lighting, and energy-efficient appliances.

Another calendar month or quarter may find that a property manager will conduct their regular property maintenance rounds, including HVAC servicing, roof inspections, and plumbing checks to prevent costly repairs.

What happens when expenses get out of hand?

It’s time to renegotiate or look for ways to automate some tasks. It’s also an excellent time to reanalyze the data, re-crunch the numbers, and look for other ways to save. For instance, implementing a comprehensive waste management and recycling program can reduce expenses by lowering waste disposal costs and generating revenue from recyclable materials.

Can the tenants help with this?

Yes, they can! In fact, working together encourages everyone to feel like they’re a part of the community at the property and planet levels as they combine forces. Owner/landlord/tenant relationships become “we” instead of “them vs. us.” Property value is enhanced.

LOWERING EXPENSES CAN BE FUN

CREM Management isn’t a newcomer to the Southern California property management landscape. The stakes are high and the competition is higher. But the challenge to be better is why we’re in business. Every step of our company reminds us that we are here to bring maximized value with minimum liability to our investors. We want our competency, transparency, and professionalism to exceed those of our competitors and those of ourselves the day before yesterday.

Owners and tenants want the same thing: a nice place to live and work. Everyone wants to do more with less. As we analyze our client’s properties, we strive to make a better place for workers and residents where they can feel safe and heard. Lowering expenses to be more sustainable or to prevent repairs down the road is all a part of what we do—for fun.

Please don’t hesitate to contact CREM Management for more information. With offices in various Southern California counties and cities, we are conveniently located to serve you as an owner or as a tenant.

Don’t listen to us… Here’s what a happy client says:

From tech and tenant management to consistent reporting, these guys are top-quality in every respect. As an out-of-state owner, CREM Management is the best partner on the ground to effectively manage and communicate with ownership. The value they have brought to the table exceeds both my and our investors’ expectations, and with in-house legal counsel, CREM Management lets us rest assured that our assets are in good hands.

- PAT SMITH, ASSET MANAGER, CTY INVESTMENTS