Conrad Vass argues that property owners should invest in upgrades like kitchen remodels and solar installations instead of just raising rent. These capital expenditures generate long-term tax benefits and add value. He also suggests monetizing space through ATM leases and signage to maximize returns while controlling expenses.
Asset management perspective. Property management isn't really asset management. It's probably a more commercial term we would use to, to try and differentiate between a residential property management service and more of a commercial one. Uh, we're not maintaining the buildings, we're maximizing the return while preserving the capital. Now, that might sound like jargon, but sometimes the gain for clients isn't on the income. Conversely, it's looking at the other side of the balance sheet. It's the expenses. It's what's going on. There's no point pouring water into a leaking bucket. It's just not going to make a difference. It just makes it harder. and leads you to what we have found typically a different area of problems. An asset manager, if you will, we're looking at the asset top to bottom, inside to out. So we're not only just looking at income, we are also looking at expenses. We are also looking at CapEx or capital expenditure. And what that means for our clients. So a very simple example might be a depreciation report. We often have pushback of, I don't want to spend that money, it's an expense. That depreciation report, which is a one-time fee in most cases, if used through its life, will have a recurring benefit for the next several years on your accounting and tax for that given asset. You look at it as an investment or an expense, it depends on your perspective of something like that. Look, an asset manager, you know, you're looking at things holistically. That might mean that you need to update a kitchen. It's not a cost, that's an investment, um, a big one, but nevertheless. Or, you know, you're evaluating opportunities, uh, that could be realized. Uh, there was one we discussed with a residential client the other week. They had this enormous pitch on their property. Thought of attic space conversion. You can't go out, you don't have parking, but you could have an extra room which you already have. It's just not doing anything. So they're really easy examples. Uh, commercially, you know, there's solar, solar power generation. There are There's signage opportunities, there's ATM. We were discussing with a client again the other week, they have an asset with a 15-meter frontage. Should we explore reserving some space on the front and perhaps leasing to ATM banks? Seems pretty obvious to us. To them, they never heard of it before. But all these things make a difference. That is what our task is. Our task is to look at things holistically and to guide and advise our clients. Um, you know, there are other things that we spend a lot of time on— capital growth strategies, income optimizing, risk management, which is a sleeping problem if not dealt with diligently. Diversification of portfolios if they are that way inclined. And market timing. Timing is everything in business and property.
Surry Hills Shop & Basement For Lease | 68 Campbell Street Walkthrough 134 sqm Surry Hills Shop Tour
