Property development management doesn’t have to be tedious and impossible, especially if you understand what it takes to be successful at it. Whether you’re working for a small-scale or large-scale real estate investor, you can never go wrong with the right approach to real estate development management. You’ll not only be able to successfully execute real estate development projects but also help maintain rental property on behalf of the owners.
But what does it take to offer top-notch property development services? Is it different for an individual manager and a typical property development management company? This article shares critical tips to help developers undertake successful projects with the help of development management in real estate.
What Does a Property Development Manager Do?
A property development manager is critical to the successful implementation of a real estate project. You could get property development management services in-house or outsource them to a company. Either way, you would get someone to oversee construction work on a new or existing project. The following are the most common property development manager roles and responsibilities:
- Applying for and obtaining permits from the local government for projects
- Managing the design, construction, and marketing processes of commercial and residential properties
- Negotiating contracts with architects, contractors, engineers, suppliers, and other service providers
- Estimating costs and preparing construction budgets during construction and thereafter
- Coordinating hired professionals, including architects, contractors, engineers, etc.
- Managing a property development project in all aspects from inception to completion
Property Development Manager Salary
You would need to pay a real estate development manager a salary if you were to hire them in-house. However, outsourcing property development management services to a professional company could be more affordable.
Property development management fees are usually a percentage of the total value of the property or rental income. Since it’s paid once, it is more manageable. And you do not have to get stuck with a manager whose services you no longer need once the project is complete.
Tips for Successful Property Management and Development
Property development management can be daunting if you opt to do all the work yourself. You’ll not only be overwhelmed with work but may also overlook some critical details. Therefore, the best option is to always work with a professional property development and management company. After all, real estate development management is a specialist discipline requiring certain undertakings. Here is how to succeed in property management development:
1. Extensive Initial Research
One of the first things that a property management and development company would do for you is carry out extensive research. It will help you get a good picture of what you intend to achieve with the development project. Research also helps to determine the high-potential location in terms of the neighbourhoods. Plus, you’ll be able to determine a budget and study local authority zoning maps. When researching, try not to avoid any of the critical details. Otherwise, you might fall short while executing the project.
2. Feasibility Study
Once you’re through with the research, carry out a feasibility study. But why a feasibility? It helps determine whether or not your project is profitable and to what extent. Since you might have no idea how to conduct a feasibility, ask for help from a real estate development and management company. When doing a feasibility, review the potential risks, profit, and terms of sale.
Risks may include the natural contours of the land, vegetation, and access to electricity, water, and sewerage. When determining profitability, you must first consider the construction costs by working with the project manager. That too goes for the terms of sale, where a lawyer and accountant could be involved.
Professionals from the real estate development and management company will carry out a market study and work out an initial program for the project. Since the feasibility is the business plan for the project, it will contain the target budget, financial plans, milestones, and compliance with zoning and approval requirements.
3. Preparation for Construction
After the feasibility, the housing estate management company will help you prepare for construction. This stage involves completing the acquisition of the site. You may require help in putting in place a professional bid for a site that is available for auction. Remember, out of the many bidders, you may or may not be the eventual buyer of the property. However, if it’s a direct purchase, you should manage the process skilfully to avoid adverse effects on your bottom line.
This stage also involves obtaining necessary government approvals and hiring architects, contractors, engineers, and other professionals. Besides engaging an architect to prepare the building plans, you should also put your finances in order. Critically, you may need to update your feasibility study and start presales where possible.
4. Building and Construction
Building and construction is where the rubber meets the road regarding property management development services. From your initial plans and budgets, you begin to see your project getting actualized. Since you have engaged a property development management provider, you do not have to do any heavy lifting yourself.
But that doesn’t mean you can afford to be completely hands-off. Although a property developer service provider will outsource all the required professionals, you’ll need to sign contracts with them. You can then leave the rest of the work to the project manager.
5. Marketing and Selling
So, you have successfully executed a property development? How do you let potential buyers and renters know about its existence? Of course, you’ll need a comprehensive marketing plan to not only create awareness about the houses but also sell them to potential buyers. With the help of professional residential development services, you should be able to craft a workable marketing plan.
It will involve choosing a target market, selecting a suitable channel, designing and commissioning creative materials, and laying strategies to execute your sales campaign. However, you could also advertise your property for rent. In that case, your promotional messages and materials should focus on acquiring rental customers.
Hire a Property Management Company
A professional property management and development company can help you to successfully navigate the property development process from the beginning to the end.
If you’re looking for professional property development management in Australia, reach out to Pezet Matheson today.