How Real Estate Factors into Business Decisions


19 November 2016

Real Estate

Real Estate

People tend to think of real estate in a very direct, narrow sense. We factor our rent into our monthly budgets and see property taxes as only a small slice of the larger bill we pay every year. We rarely think about the fact that real estate and housing costs have incredible ripple effects that dictate the success and failure of several industries.

Consider the housing bubble in the United States and how it eventually prompted the greatest economic setback since the Great Depression. The woes of the housing market permeated into virtually every other facet of the American economy, and they had a gigantic impact on the lives of so many people who felt the pinch in ways that seemingly had little to do with housing.

For business owners, real estate is a much bigger piece of the economic pie than they might initially assume. Though there is little we can do to influence the policies of banks who give out loans or the real estate prices in our markets, we can look at how real estate factors into our bottom lines.

Factoring Real Estate Costs into Your Budget

The first consideration you should make is how property costs will directly impact your budget. A business owner might decide that they are best served to own the property they’re using, or they might find that perhaps their interests are best met by a rental space. Whatever solution you’ve decided is best for your business, don’t forget to factor in the costs of property tax, insurance requirements or legal expenses that you might encounter and how those costs could add to your initial estimates.

Remember that buying a property, especially if you’re building or renovating a commercial space, comes with many costs. You will carry the responsibility for repairs and maintenance, for example. You’ll need to determine whether your business can sustain these costs, and you’ll need to leave room in your budget for unforeseen circumstances.

Your Location Will Also Affect Employees

If you are poised to hire workers, you will also need to consider how your real estate choices might impact them. If you are relocating, will you be able to offer your employees compensation for relocating with you? If you are hiring new employees, will they have to travel to reach your business? The size of your workforce will also dictate the size of your workplace. Remember that if your business will be adding more employees in the near future, you will need to accommodate those workers.

Using Real Estate as a Barometer

If you’re starting, expanding or relocating a business, you might be able to determine what location is most advantageous by looking at real estate prices in your new location. There are many things to consider. Is the area you’re looking at booming, or is it stagnant? If an area is showing signs of growth, can you afford the costs of a property in a competitive real estate market? How much does your business really depend on being located in a prime area of your community?

Being Realistic in Your Expectations

Just like any other decision you’ll be making as a business owner, you’ll need a healthy dose of realism when you are factoring in how real estate will impact your bottom line. Is it reasonable to buy a big, plush location in the most booming part of a city, or is your business model best served by renting a space and keeping costs down until you know how much income you will be generating? In the beginning stages in the life of a business, it is best to cut any expenses that are not absolutely essential to the operation of your company. Find out how many expenses you’ll be facing that you might not currently be factored into the equation, and look at all of your options before making a decision.

Real estate impacts our lives in many ways, some of which might be out of our control. But so many of the decisions that business owners make can be based on predictable costs that we might fail to overlook in the excitement of beginning or expanding a business. Be cautious, realistic and thorough when determining the role property will play in your operations.

Rebekah Damen Lusk a partner at the Maryland law firm Thienel & Lusk, LLC Attorneys at Law. Her practice includes civil litigation, business, employment, landlord/tenant, real estate, family, equine and animal law.

Read More:

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  2. What Makes A Strong Foundation For Your Home
  3. Buying Your First Home In St. Louis
  4. Why You Must Embrace Green Home Technologies?

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Pet-Friendly Apartment

Where Are You Able To Search For A Pet-Friendly Apartment In Boston?

If you're in search of a pet-friendly apartment that allows pets, you'll be happy to know that there are many places to find such accommodations.There are several pet-friendly rental services available, including Blueground, Hub50House, and Woof Deck. All of them have specialized agents who have years of experience working with landlords and tenants. Searching for pet-friendly apartments is not challenging. Now, most landlords are giving advertisements with these parameters.But sometimes, searching the pet-friendly apartment complexes near me will not fulfill your requirements. Therefore, you have to streamline your search and find the available apartments.3 Best Destinations For Searching The Pet-Friendly ApartmentFor searching out the best pet-friendly apartment in Boston. You need to register your name in an authentic etching portal.Or you have to search the rentals for your neighborhood areas. The manual process is accurate, but it requires more time for the executions.Also, be sure to check out Apartment Guide's guide for the Boston apartments with pets.1. BluegroundThere are plenty of places to look for Boston pet friendly rentals, but if you don't have much money to spend, you can search for apartments on Blueground instead. These Boston apartments are fully furnished and equipped and allow pets. The listings range from South Boston studio apartments pet friendly to pet-friendly two-bedrooms in Kendall Square. If you have a large dog or cat, you can also search for pet-friendly apartments on Blueground.These Boston pet-friendly apartment rentals are a great choice if you're looking for a luxury apartment without the hassle of a landlord. This service has thousands of move-in-ready apartments for rent in major cities worldwide. Whether you're staying for a month or a year, you'll enjoy the privacy and convenience of owning your own apartment. And while it's true that friends and family members surround you, you'll be able to relax in your new Boston apartment with your dog, cat, or whatever pet you want to bring along.2. Hub50HouseIf you're looking for a luxury pet-friendly apartment in Boston, look no further than Hub50House. Located above the famous North Station and TD Garden, this new construction complex boasts luxury units, panoramic city views, and exclusive resident benefits. From the roof deck and grill pods to lounge seating and the first covered lawn in Boston, this property is truly something out of this world. Pets are welcome in the Club Room and can use the dog grooming station or exercise on the rooftop lawn.Residents can expect nine-foot floor-to-ceiling windows, granite countertops, and stainless steel appliances. Some units even have terraces and double vanities. Many units have keyless entry and Nest thermostats. In addition, Hub50House buildings feature a business center, game and media room, fitness center, and coffee bar. Guests can attend complimentary fitness classes, and residents can access a fitness center and game room.3. Apartment GuideChoosing a Boston, MA apartment with pets is no small task. You want to be sure you're getting a space that allows your furry friend to live comfortably in a home-like setting, without compromising on the quality of your life. To make your search easier, here are a few tips for finding pet-friendly apartment rentals. First, remember that there are different types of apartments for rent in the city. If you have a pet, you'll want to choose an apartment with a dog-friendly policy.For example, Brighton apartments welcome pets and are located near Nubian Square. The neighborhood is convenient for students and commuters on the Orange Line. Roxbury Crossing is just a fifteen-minute walk away. This apartment complex is also located right across from the Chestnut Hill Reservoir and next to a B Line stop. The apartments are beautifully appointed with hardwood floors and creamy walls, and many include an in-building laundry.Conclusion:To find a pet-friendly apartment in Boston. First, register your names in the authentic online portals. Also, keep some of these points in your mind.Most landlords are permitted to keep pets like cats and dogs. But if you have something unusual, pets like reptiles and snakes.So always carefully read the norms before signing the contracts with the landlords. Hence these are the three authentic places where you can easily find the right places for searching the pet-friendly apartments in Boston. So what is your opinion about the Boston apartment rentals?Do not forget to share your option in the comment sections.Additional:Brunswick Apartments For Sale: 4 Inspection Tips For BuyersTips For Maintaining Your Master Lock Keys

Is real estate investment trusts a good career path

Is Real Estate Investment Trusts A Good Career Path In 2023?

"Is real estate investment trusts a good career path?" the answer to this question is absolute ‘Yes.’ This business is already attracting lots of beginner investors into the market because it consists of a high return on investment.REITs are actually companies that own finance-producing real estate across various sectors, and investors get huge benefits from this. However, there are a number of requirements to qualify as real estate investment trusts (REITs).The main purpose of this company is to help communities grow, revitalize, and thrive. This real estate investment trust is located in every state and is considered a crucial part of the United States economy. Now, discuss this in detail.What Is A Real Estate Investment Trust (REIT)?As already discussed above, a real estate investment trust or REIT is an investment property that funds income-generating real estate assets. This fund is managed by a firm of shareholders who invest funds in properties such as timberlands, hotels, shopping centers, hospitals, warehouses, apartment buildings, etc.A REIT is similar to an exchange-traded fund (ETF) or mutual fund. A mutual fund aggregates a number of securities or stocks into a single group. Then, rather than purchasing individual fund shares, investors can purchase shares of a mutual fund.In a similar way, investors can acquire shares or partial ownership in a real estate investment trust to reap the financial benefits of investing in multiple pieces of real estate or other securities simultaneously.An advantage of real estate investment trusts is that they offer good investment returns to the investors. This factor is attracting many to invest in this asset. Now, what do you think, Is real estate investment trusts a good career path? How Does A Company Qualify As A REIT?There are some requirements for a company to qualify for real estate investment trusts, and these requirements are listed below:You need to have at least a hundred shareholders.Fifty percent of the shares should not be held by five or fewer individuals.The company should be managed by trustees or a board of directors.Be an entity that is taxable as a corporation.The company must pay at least ninety percent of its taxable income as shareholder profits each year.Obtain a minimum of 75% of its gross income from rents, mortgage, or sales of real estateLastly, invest at least 75% of its total assets in real estate.How Can You Invest In Real Estate Investment Trusts? An investor or a company must buy stocks just like public stock. The investors may buy shares in an exchange-traded fund or REIT mutual fund. On the other hand, there are many jobs available in real estate investment trust, and these include asset management, property management, development, and much more. Pros Of Real Estate Investment Trusts (REITs) - Is Real Estate Investment Trusts A Good Career Path?There are some pros and cons of REITs that you need to consider before choosing a real estate investment as a career path. Have a look at these below-described pros of real estate investment trusts:i). Performance: This is proven to perform well due to the appreciation of commercial properties.ii). Diversification: Investing in REIT is regarded as an investment portfolio where the securities and other stocks are down.iii). Dividends: Provides a stable income stream for investors.iv). Liquidity: You can easily buy and purchase shares in the market.v). Transparency: This investment trust is traded on vital stock exchanges that operate under the same rules.Cons Of Real Estate Investment Trusts (REITs) - Is Real Estate Investment Trusts A Good Career Path?Now, let’s know the major cons related to real estate investment trusts, and these are described below:i). Minimal Control: If you are investing in this firm, then be prepared because you cannot control operational decisions, such as plans and strategies.ii). Management Fees: You may be charged with high transactions and administrative fees.iii). Investment Risk: There are some factors that can affect your investment, and this includes tax laws, geography, debt, interest rates, and property valuation. iv). High Tax Payment: The dividends can be taxed the same as normal income, and this is the drawback of REIT. Here, you may have some clarity to your question, “Is real estate investment trusts a good career path”. V). Slow Growth: More than 90% of profits are given back to investors, and only ten percent are reinvented.What Are The Different Types Of REITs?There are actually five types of real estate investment trusts, and these are described below:1. Mortgage REITsThere is only ten percent of REIT investments are in the mortgage, and this is regarded to be very less risky. For diversifying your portfolio, you must consider this investment for your firm.2. Office REITsThe name of this investment trust itself signifies that these are investments in office buildings. Office real estate investment trusts get income from the rental income. However, there are some major factors, such as vacancy rates, employment rates, capital, etc., that you need to consider if you are interested in office rent.3. Healthcare REITsHealthcare REITs are an excellent choice as in the US; healthcare costs are rising rapidly. This type of trust includes nursing homes, retirement homes, medical centers, hospitals, etc. Hence, it is directly involved in the development of the healthcare system.4. Residential REITsResidential REITs include several kinds of rental properties like PGs, job holders, etc. However, before considering this know the economic growth, vacancy rate, job opportunities, and the population. 5. Retail REITsIt is estimated that around twenty-four percent of the total REITs are owned by retail. Therefore, investing in these real estate investment trusts can be the best decision that you can consider in 2023.What Are The Best Paying Jobs In Real Estate Investment Trust?Now that you know the answer to “Is real estate investment trusts a good career path,” it is time for you to know about something important!Before you can figure out how many jobs are available in real estate investment trusts, you need to know which REIT jobs pay the best. Our research indicates that sales representatives, leasing agents, broker positions, fund managers, and a variety of other positions in real estate investment trusts (REITs) are the ones with the highest pay.The advantages will increase more when you own your own land ventures. Presently, we should talk about the top divisions that get the most significant pay in the land venture trusts.1. Asset ManagerThe Asset Management department of REITs is in charge of monitoring the portfolio's financial and operational performance. They manage client assets in accordance with investment preferences and goals. Additionally, these managers create, manage, and organize client portfolios.It is quite possibly the most lucrative work, with compensations going from $70,000 to $1,000,000. They must keep an eye on the business's financial and operational success. They are also in charge of marketing, finding investors, and checking the returns.Asset management can be a lucrative career choice, particularly for students of investment banking, finance, and economics with strong performance. BlackRock was the largest asset management company in the world at the end of 2019, managing approximately 7043 trillion dollars in assets. Subsequently, this is actually a colossal sum!2. Property ManagerYou might be surprised to learn that there are currently approximately 15,000 property managers employed in the United States, and this number is increasing. A property manager's duties include communicating with customers and negotiating the best prices for the sale or rental of property.They handle everything, from leasing to collections and property upkeep. The best part is that applicants need not meet any minimum requirements to apply for this position. This job pays anywhere from $55,000 to $65,000 per year, and one of the best things about it is how quickly it can grow.3. Acquisitions Because they have to find and evaluate potential acquisition targets, working for this job profile requires a lot of analysis. There are many job opportunities in this sector, and the good news is that it pays well—about $80,000 per year.They must be adept at problem-solving and aware of new revenue-generating investment opportunities. This position is one of the best in the real estate investment trust industry.Securing divisions gives paying positions in land speculation trusts. However, this is a real estate industry position with a lot of finance.4. Investor RelationsAll communication with REIT shareholders that faces the outside world is managed by this department of real estate investment management. A typical administration financial backer procures up to $150,000. This is huge, and it is regarded as the REIT's highest-paying job position.This is your opportunity to work in the finance and accounting division. The best thing about it is that it pays well and has good potential for growth.In addition, organizing and preparing for the annual meeting, which includes writing a proxy statement and an annual report for the business, is part of the job of investor relations.Presently, to land this position, you will need a college degree with a foundation in money or bookkeeping. 5. Real Estate InvestorThis is quite possibly the best work in the land venture trust industry in light of the fact that, notwithstanding the significant compensation, there are great possibilities of headway in this industry. Their primary function is to help people become financially independent by investing in real estate.Before investing and trading, this job requires extensive market research, which takes time. It will be mentally and physically demanding because you will be required to carry out a variety of tasks, such as inspecting, maintaining, flipping, purchasing, and restoring the properties. They can increase the value of their investments as a result of all of this.You really want a degree in bookkeeping, money, or business to turn into a genuine financial backer since you want to think of ways of improving ventures for you as well as your clients. A land financial backer procures somewhere in the range of $15,000 to $15,000 each year.Bottom Line: Real Estate Investment Trusts Is A Good Career PathYou might have got the answer to your question, “Is real estate investment trusts a good career path”. Consider the pros, cons, and types of real estate investment trusts (REITs), and then you can decide whether it is good for your career path or not. However, according to the experts, REITs are considered a good career path!You May Also Like:Is Energy A Good Career PathIs Business Services A Good Career PathIs Other Consumer Services A Good Career Path

living in Seattle

Cost of living in Seattle

Seattle is considered to be one of the fastest-growing cities in the United States. It has been estimated that the population will grow with more than 200000 people over the next 20 years. This has strongly been attributed to the tech scene as well as its vibrant culture. This collectively causes the city to become expensive. Studies by the Council on Economic and Community Relations have pointed out that Seattle is 24% more expensive than any normal city in the United States. This means that someone earning an annual salary of $40000 will have to earn $49600 to maintain the standard way of living in Seattle. These costs have been attributed to factors such as home prices, cost of transport and other essential costs. Housing in Seattle:The prices of homes in Seattle have shown to be one of the most expensive in the United States and do not seem to be coming down anytime soon. This may seem like good news to citizens who already own houses in Seattle, but it is a nightmare to those who don't own one and want to own one. Prices of houses according to a 2010 survey indicate the price ranges between $216000 and $440000 depending on the number of bedrooms. It has also been indicated that if these prices keep growing at the rate of 20%, the prices will surpass the $1 million mark in the next 25 years.Read more: Buying Or Selling A Home In Seattle? Average rent in Seattle: Renting has been discovered to be more favorable compared to buying. However, it is not a cheap venture. The average rent in Seattle has been estimated to be $2109 which is roughly 80% higher than the national average. Some neighborhoods in Seattle have shown to be more expensive than the others. For instance, a neighborhood like South Lake Union, a one-bedroom is rented at $1900 per month. Cost of food:Seattle is known for its exquisite seafood which is sold at the Pike Place Market. However, if you earn little income and survive on a tight budget, then you may not be able to enjoy the cuisines. It has been estimated that the average cost of dining in a typical Seattle restaurant will cost you $30 which is 30% higher than the average or typical price range countrywide. This goes for groceries too where it has been estimated the cost of acquiring groceries in Seattle is 11% more than the average cost of the same products. Transportation cost: Most people who live in Seattle rely on road transport to facilitate their movements. It comprises of car owners, public bus transport and even cyclists. The price range of a single bus ticket ranges between $2.50-$3.25. This is more convenient because it has been proven that Seattle traffic is one of the worst in the country. Its fuel prices are also said to be 10% more than the national average price. Other costs: According to internet service providers offer options to ensure proper communication which is essential nowadays. This costs can rise to $75 per month which contribute to the monthly costs you may incur while living in Seattle.Read Also:What Are The Costs Of Our Aging Infrastructure? 5 Awesome Advantages Of Buying A Smaller House