21 Jan 2014

So, just what is a real estate receiver and what is it they do – exactly? As with many jobs in real estate, the variety day-in and day-out for a receiver is what keeps us hooked. There is never a dull moment and despite the ups and downs we’ve weathered in our industry, we remain energized because we love what we do and when it comes to real estate receiverships, no day is ever the same and every assignment brings new challenges to tackle, and we thrive on that.

To help you understand what it is that we do, we’ll break it down into the primary steps – secure, stabilize, maintain, and ideally – improve the investment while the property is in our custody.

Our first responsibility as a receiver is to secure the property. Securing a property means everything from closing forgotten windows, checking for safety hazards, or to even changing the locks. In addition to securing the property, we take photographs to be sure details are documented for the court. It sometimes takes two to three days to properly secure a property, depending on the size and whether or not it is occupied with tenants.

After we’ve secured the property, we then need to stabilize it. We do that by assigning a property manager to pay bills and collect rents, and we hire a tenant manager to handle contractors and take care of tenant issues as they arise. Part of stabilizing the property is to communicate with tenants who we are and how to reach us with questions and issues. We visit each tenant in person so that every one of them receives the same information. We also provide a tenant hotline to be sure tenants are taken care of while under our stewardship.

Maintaining the property and improving the investment is done by ensuring tenants are safe, issues are addressed and the property is given the attention it needs. Buildings can deteriorate if not properly maintained so we see that those issues are handled professionally and efficiently.

Every property is different and there is no such thing as dull day in the life of a receivership or property manager involved in the receivership process.

 

 

 

 

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About the Author


In 1991 Steve Saunders began his real estate career selling homes in the Midwest. He has sold over $100 million in real estate so far. In 1998 Steve started his first property management company to provide clients a facilities management solution and property oversight for their commercial portfolios. His call center was the first for a local management company and it successfully provided clients with detailed monthly financial reporting on maintenance activities.

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