Page 240 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

“ What will you charge for signing new tenants? ”
This depends on the size and type of your project. For offi ce and
retail, it could be a fee that ’ s based on a percentage of the lease.
If it is a multi - family property, then it may be one month ’ s rent. If
you have a large complex that merits having a leasing agent on site,
that person may get a salary plus leasing bonus.
“ What is the cost of the eviction process? ”
In some states you are required to be represented by an attorney.
Other states allow you to use an agent, a role that the property man-
agement company can fill. Also ask about the eviction procedure in

that state.
Office and retail tenants are usually very easy to evict if they don ’ t

adhere to the terms of the lease or don ’ t pay. With multi - family ten-
ants it can get tricky. Depending on how tenant - friendly the state is,
evictions can take from three weeks (Texas) to more than three months
(Massachusetts).
“ What type of advertising do you do, and who pays for it? ”
They should be able to answer this question very quickly. They
should be active with many forms of advertising, and not just the clas-

sifieds, which are the most expensive media to use. You ’ re looking for
a response that includes websites, flyers, newsletters, trade magazines,

and so on.
Often these are pass - through expenses, meaning you will have to

pay. Occasionally you can benefit from a general ad that the company
runs for many properties, in which case you might pick up only a frac-
tion of the cost.
“ What should I expect for monthly reports? ”
Even though we know you should be getting several reports at a
minimum, it ’ s useful to see what the company thinks is standard
procedure. You should expect an executive summary, a profi t - and - loss
statement, and a budget variance report, at the very least.
“ Do you have your own maintenance staff or do you
subcontract? ”

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