A Property Lifecycle Made Easy By Madison Management

Commercial property has a standard life cycle. It is initially conceived as an investment; then, it traverses a journey wherein various techniques are implemented to make it financially profitable until the cycle is repeated or terminated by the investors. Here are the seven stages of a property life cycle.

1.The hunt

The primary stage of a property life cycle constitutes the search for the right commercial property. Investors employ various avenues to gather information about properties on sale in order to discern which ones are the most potentially profitable options.

2.The study

After the hunt is over, a thorough analysis of various factors associated with the screened properties is carried out. This analysis reveals the opportunities and threats for each of the properties and helps the investor select the right option.

3. The purchase

The third stage refers to the buying process which involves a contractual transaction between the buyer and the seller of the property. The investor needs to be very careful in this stage to ensure transparency in the dealings. It is advisable to hire a reliable property management service such as Madison Management services to indulge in negotiation and eventually facilitate the legal paperwork.

4. The makeover

After the purchase is made, the property demands renovation. This stage also witnesses the laying down of security measures, damage control measures and implementing sustainability technologies. Property management services such as the Madison Management company believe that value addition must be done on a property through all the aforementioned structural face-lifts in order to make it attractive to prospective tenants.

5. Tenant management

This is undoubtedly one of the most important stages of the property life cycle. It constitutes the promotion of the property targeting the right tenants, screening the applications for tenancy, selecting the right tenant and preparation of the lease, rental features etc. Property management services such as Madison Management emphasize the need of a sound landlord-tenant relationship to maximize profitability of the property.

6. The re-investment

This stage refers to the period of non-occupancy of the property. Every time, the property is vacated by a tenant, it demands comprehensive damage repairs and replenishment of resources. The vacancy period must be utilized fully to make the property rent able for longer periods.

7. The exit

The last stage of the property life cycle is reached when the property owner realizes that the property has served its purpose as an investment. The property owner chooses an exit strategy, which is usually selling the property to another suitable investor.

I am John Daniel, A US based Real Estate Professional and Blogger. With experience in real estate of more than 10 years, the above mentioned article is solely based on my experiences with madison management .