4 Things to Consider When Selecting a Residential Development Manager
When trying to identify a residential development manager or property development company that is best suited to your project, there are many things you need to consider.
It’s important that you get this step right to ensure a smooth enjoyable experience and successful outcome.
The last thing you want is to appoint the wrong residential property developers for your project. Running a development is a high stakes game.
The potential to lose a lot of money fast is real. So take your time and do your research – don’t rush.
Avoid making decisions under pressure, if you’re in a position where time is ticking away and you feel like a sinking ship this is the exact time to not rush a decision.
No matter your circumstances you need to take the time and effort to research your options to ensure you make the right decision.
So let’s look at four things you should consider when making this important choice.
1. Hidden Development Manager Fee Structures
A common thing client-side residential development companies do is claim they don’t charge for their service; this is something you need to be aware of.
At Little Fish, we put our fee on the front line, because for us it’s all about trust and transparency.
Something that is extremely common in our industry is when development management companies absorb their fee in the build or other parts of the project.
This is something when you are trying to determine which development manager or company to use you need to avoid. We think it’s deceptive. As we all know, nothing is free in this world.
What it essentially means is they plan on clipping their ticket anywhere and everywhere they can throughout the duration of the project.
So, in essence, you’ll never actually know how much you have paid for their development management service.
Look for a company that is willing to be upfront with you about their fee structure.
On a side note. If you’re up for the challenge of running your own project these are the skills needed for property development success.
2. Legitimate Work History
Anyone can go out to the market and claim to have expertise in any field that isn’t regulated. And to manage a development project for a third party there are no regulations.
So it’s important that you do your research into the development project manager you are considering.
You need to ensure they have the required experience and they don’t just appear to have the required experience.
The last thing you want your project to be is the guinea pig for someone who’s either just starting out or who is trying to build a development management business without the required knowledge, experience and successfully completed projects.
It’s important you verify any development projects or work history the residential development manager or company you are considering.
You can visit any active sites/projects, request to talk to past clients or do online research – it really doesn’t matter how you verify what they are telling you, as long as you do.
3. Relevant Residential Development Experience
Development projects can vary significantly in type and size and the service you are looking for isn’t going to be a one size fits all.
You need to look at the type of development project you are considering and find the best-suited development management company possible.
This is important as each person and/or company will be set up and suited to different developments and each will have their own specific efficiencies.
If they have the relevant experience, they will have the relevant efficiencies that your project will benefit from.
The types of services, trades, suppliers they work with needs to be suited to your project type and style.
4. Gut Feel
Finally, after you’ve put the time and effort into researching your different options.
You’re happy with the fee and structure, you’re comfortable that the work history is legitimate and you’re comfortable they have experience in projects just like yours, then the last step is to make an educated decision with all the information in front of you.
Ultimately you want to trust your instincts and gut.
Follow these four points when selecting a residential development manager for your next project and you’ll be right as rain.
If you’re just looking for some help and advice reach out to our property development consultants here at Little Fish.
As long as you follow these four tips, you shouldn’t have any issues choosing the property development management company that’s right for you.
If you’d like to learn how we could help with your next project we’d love to hear from you.
Call 1300 799 277 anytime for a friendly chat.