SMC Extension/Community Education will be offering a new class this fall, “Property Management – Residential, Commercial, Industrial,” a career in which employment prospects are solid.
In fact, employment of property, real estate and community association managers is projected to grow 10 percent from 2016 to 2026, faster than the average for all occupations, according to the U.S. Bureau of Labor Statistics.
Although SMC Extension/Community Ed has offered residential property management courses in the past, this class also covers the commercial and industrial areas as well. And the course will be taught by an instructor who brings more than 25 years of experience in real estate.
Donyea Adams has provided professional real estate advisory services for both the public and private sectors, and previous private sector assignments include commercial real estate advisory services, affordable housing resident manager and affordable housing rehabilitation development management.
Adams received a Bachelor of Science in Business Management from Pepperdine University in 2004 and a Master’s Degree in Real Estate Development from the University of Southern California School of Policy Planning and Development in 2008.
He has maintained an active California Real Estate Broker license since 1994. In 2009, he set up a consulting service to provide professional real estate advisory and investment services to corporations, private entities and local government authorities.
What are the rewards of property management?
The reward is to provide a service to a property owner that will result in generating income, delivering well-qualified tenants, and increasing the market value of the property.
What are the challenges?
The challenges to property management are the legal issues that can disrupt the property operation such as evictions, as well as city and state compliance. Also, staying in front of the rental market by providing leasing comps and market analysis.
Please explain briefly the differences between residential, commercial and industrial property management and what can be expected with each.
The differences between residential, commercial and industrial property management are numerous. Residential property management is focused on managing homes and apartment communities for the benefit of tenant possession and use. Tenants will reside on the property as a long-term residence or short-term residence. The lease agreement for residential property is typically 6 months to 1 year. The property conditions are regulated at the local, state, and federal level. The security deposit is based on the property being furnished or vacant and the maintenance of the property is generally the responsibility of the property management agent or property owner. The property manager will focus on selecting the best-qualified tenant, maintaining the property in good condition, and generating as much income as possible for the landlord/owner.
Commercial and industrial property management is very different than residential management. Commercial and industrial tenant communities are small and large businesses that need to occupy space to conduct their business. The lease terms can expand from 6 months to 30 years. The property use and condition can be controlled by the tenant. The lease type will fluctuate depending on what the landlord and tenant agree to pay.
So with these minimal differences in residential and commercial/industrial leasing the property manager focused on commercial and industrial property needs to have the skill set to provide both the landlord and the tenant with a service that will add value to the leasing experience. The commercial property manager needs to understand the environmental issues the property may have as well as the legal complexity of a lease agreement. The manager is associated with trade organizations that cater to commercial, industrial, and office rentals and development and typically the property manager will have an advanced college degree.
What kinds of opportunities are there in commercial and industrial property management in L.A.?
There are lots of opportunities in property management. A person can work as an asset manager, leasing agent, or property supervisor. The entry to the industry is not difficult but may require training, a degree and understanding of the commercial and industrial market. Commercial and industrial property management requires a dedication to managing commercial and industrial real estate and is typically exclusive to that real estate category. The salary is different as well and tends to offer a higher salary than residential property management. Commercial property management is typically tied to commercial real estate sales and in both cases requires a real estate broker or salesperson license.
Donyea Adams will teach“Property Management – Residential, Commercial, Industrial,” Oct. 20-27.