Managing Property Businesses

Answer

Managing Property Businesses

Overview

            One needs to crack how investment goes by having an excellent understanding of the investment vehicles. It is also very vital to understand the investment strategies. Allocation of investments, diversification and dollar, cost averaging is among the investment strategies one needs to understand. Using a property management company can be beneficial since a property manager who is competent can add significant value to investment. Therefore, good results can only be expected if the management company is adequate, trustworthy and best fit for the property. Real Estate Investment Trusts (REITs), on the other hand, have become tax treatment since they provide quoted property companies with transparent tax status. Notably, some investment vehicles get to enjoy and benefit from the open status of tax. 

Introduction

            The market today is very competitive. They usually reward companies that demonstrate consistent earnings plus dividends that grow with a measure of stock valuation with the higher price-earnings ratios. Notably, investors always look for Real Estate Investment Trust to trade with if they have the following characteristics. If they demonstrate the ability to increase their earnings; it is brilliant to look for companies whose property rent are below current market levels. Investors also look for REIT whose management can develop strategies that create new opportunities for revenues at the same time able to reinvest cash flow in an efficient manner since REITs with high operating characteristics are attractive to investors. Moreover, they need to practice effective corporate governance procedures, follow the accepted accounting practices, and strong tenant relationships.

Assessment Criteria

Investment Vehicles

            Investment vehicles are mainly used by investors who are willing to invest and expect positive returns. If they are low-risk ones, bonds or the certificate of deposits are preferred while the ones that carry a greater degree of risk are such as stock. In this competitive world, investors choose to hold a number of these investment vehicles in their portfolios so that they can be diversified and minimize the degree of risks (Ansons & Jones, 2011). The main difference that exists between stocks and bonds is that while bonds provide a smooth and slow stream of income, stocks, on the other hand, are volatile. When one invests on stocks, he/she is not guaranteed of anything since they tend to fluctuate in value on a daily basis. Therefore, it is risky to invest on the stock since there is a high degree of losing some or all investments. Nonetheless, they have enough higher returns as compared to bonds. A mutual fund is also another investment vehicle. This is a combination of both stocks and bonds, and one needs a professional manager to offer guidance in selecting securities.

            The success of REIT has positively affected my decision of investing. Studies have shown that real estate has been one of the best-performing assets since President Obama came to office (James, 2009). He has done an exemplary job, and I think it is the best time to get involved in one. Some Real estate investment products have improved since they have been enhanced and developed to allow investors to participate in owning and professionally managing the property (Block, 2006). All these above discussed factors have contributed to my decision in investing with REITS.

Current Affairs Particular to REITS

    REITS are the best choice to be in my portfolio today. Since their introduction, they have gone extra miles to show they are dependable, reliable, and stable. There is the new element that has been added to REIT, which is the fed-centric (James, 2009). For years now, the introduction of the Real Estate Investment Trust model is praised enthusiastically as the most remarkable development in the UK property industry. They are expected to boost public companies as vehicles for investment in the real estate sector to a greater extent. In the Europe, direct investment in REIT forms more than 30 percent of investment that comes from private investors (Hill, 2014). Demand Europe commercial real estate was healthy, it was found in the quarter four, according to the commercial real estate service’ firm CBRE Group Inc. Vacancy rates across property types such as the office, industrial and retail sectors had declined, meaning most of the properties were occupied. This encouraged me more about investing with REITS.

Ethical Considerations for REITS

            REIT has a body which outlines the code of conduct of the Real estate’s investment firms. Particularly, Arena REIT Limited and its related bodies corporate are committed to the highest level of integrity and the business practices that are termed to be of ethical standards. Notably, employees’ behavior under REIT, are expected to be consistent with the current community and Arena REIT rules and agree with all the relevant legislation. The reason as to why REIT Limited has a code of conduct is to ensure the Arena REIT’s business reputation is excellent and has a corporate image within the community. Second, is to make employees aware of the consequences they might face if they breach the code. Finally, is to provide standard performance for professional behavior throughout Arena REIT. Specifically, the manner in which employees in REITS carry out themselves and how the code of conduct guides them is a motivational factor.

Personal Statement

            Taking Management course has been quite exciting and challenging at the same time. The experience and skills I got in this course are exemplary. Management means doing whatever needs to be done to keep things afloat (Whetten & Cameron, 2005). I have skills such as problem-solving skills, decision-making skills, planning, meeting management, delegation, and communication. I have learned that communication is an essential element while interacting. During my management training programs, I have had the opportunity to interact with people who have taught how to handle individuals with different attitudes and from dissimilar backgrounds. I am a decision-maker as well. Notably, when a critical decision needs to be made, I have always outlined the precarious steps to follow before coming up with the final solution. I am a manager of myself and to others too; am efficient at time-keeping, work independently as well conducting team works.

            The primary methods of alternative dispute resolution are the negotiation, meditation, and arbitration (Ware, 2007). In negotiations, the parties involved discuss conflict and reach to mutually accepted agreements. Meditation, on the contrary, involves a third party so seek an agreement that is acceptable to all disputants. Finally, arbitration is more formal compared to the two. The parties involved present evidence to the arbitrator who finally decides the outcome of the dispute. When faced with property disputes, it is sometimes intelligent when issues are not presented in court, instead, can be solved using the alternative dispute resolution methods discussed above. When it comes to negotiation, a five-step guideline is followed for better outcomes to be achieved. First, gather information then build relationships to gain trust. After that, familiarize yourself with your BATNA (Best Alternative To Negotiated Agreement) as well as your opponent too. It is important to listen and pay detail to both verbal and non-verbal communication before, during, and after negotiation. Finally, take care of your target.

My SWOT Analysis

            Self-reflection is an important tool of self-development. My strengths are; I am enthusiastic, pay attention to detail and technical savvy. I have weaknesses too which include, being judgmental, sometimes I become egoistic and need to be regarded and acknowledged as the best. Being a Management student, I have opportunities such as learning more advancement in property management and Real Estates. It is right that I am faced with threats too. The world today is competitive, and everyone needs a good job, being a management student I expect to have a good placement, but technically I am not the only looking for the same.

            In conclusion, overseeing these property businesses projects can be time-consuming and involve researching the contractors that you use. The degree of research you do can determine your reputation and whether or not you have the capabilities of owning one. Property managers always face adverse publicity and fatality. To invest in Real Estate Investment Trust, one needs to get to the bottom of the negative publicity to avoid bad reputation in the future.