Commercial Property Management

Owning and operating a commercial property is time consuming and most property owners don’t have the luxury of time. Property owners who cannot allot a lot of time and effort to manage their properties usually hire a commercial property management firm to help them with most of the tasks.

Aside from the property manager, they have in their team several other individuals, like the assistant manager, the administrator, accountant or accounting team, and the maintenance engineers.

The manager will handle concerns about tenant relations, contract services, lease compliance, and forecasting. The assistant manager will handle daily tenant relations, accounts payable and receivable, and monthly tenant bill backs. The administrator will be dealing with work order management, financial reports, service contracts, and event planning. The accounting team will work on full-cycle accounting, financial reports, and vendor inquiries. The engineers are in charge of all concerns regard property maintenance.

A commercial property management firm takes care of non-residential properties, such as retail spaces, industrial buildings, storage facilities, and shopping centers. Commercial management includes responsibilities of operating an income-producing property.

Commercial Property Management Services

Getting the services of a property management company adds value to your business by saving you time and money. Their tasks include advertising, marketing, and all the other leasing processes. Compared to residential leases, commercial leases are generally longer with built-in renewals and rent escalations.

How is commercial property management different from residential property management? Here are their major differences:

Leases

For a residential property, the lease is generally brief, quite standardized, and easy to renew. However, with commercial tenants, lease is complex and may have different extension options. The commercial property manager would know how to go about with negotiations, they know when to increase the rental amount and what the appropriate amount will be (annual and monthly basis). They are tasked to help tenants if they wish to end the contract earlier than what was initially agreed on. The commercial property managers should be aware of the termination clauses in the contract.

Payments

Tenants of residential properties pay the rent and utilities. On the other hand, commercial property tenants will have to pay for property tax, maintenance, and insurance. The manager can present different payment options. Depending on the type of lease, tenants have the option to pay for some of the expenses.

Availability

Residential property managers can simply visit the properties even for shorter periods, and often, the schedule is planned.

Tools and software

Commercial property managers have the tools and software they need. These tools make property management easier.

Why you should get a commercial property manager?

You need professional help

Landlords often have the most difficult jobs but are lease recognized. As property-owner, you need to make sure that you promptly deal with repairs and maintenance, collect rent, and resolve different tenant complaints.

Leave it to the professionals

If you have more than one unit to manage, it would be quite difficult because you’ll have to deal with every issue that may arise. This is where a commercial property manager would be able to lend their expertise.

Your goal is for your properties to earn profits for you, hence, you’ll need a reputable commercial property management company to help you achieve that goal.

Residential Property Management

Getting the services of a residential property management company will be a big help to any landlord. Most property owners have jobs or other important things to attend to, that it would be quite difficult to devote all of their time to their rental properties.

A residential property management service will be handling everything that concerns your rental property, like finding tenants, dealing with maintenance, and collecting rent, among others.

Listed below are some of the benefits of hiring professionals to help you with your properties.

Guaranteed high-quality tenants

A property management company will help in the tenant screening process. A reputable property management company has an efficient and verified screening process in place that can select tenants who will rent long-term, can pay rent on time, who will take proper care of the property, and who will cause fewer problems.

As landlord, you don’t have to deal with bad tenants, scams, and lawsuits.

You have fewer legal problems

Long-time landlords know that a single bad tenant can cause a huge deal of financial and legal problems. A reputable property management firm will be knowledgeable and able to protect you from potential lawsuits and other vulnerabilities.

Shorter periods of downtime

Having an experienced property manager can help you prevent your properties from being vacant for long. They can help prepare your properties for rent, like identify what areas that need improvements so you can maximize revenue.

They will also help you establish the optimal rent rate. If rent is too high, it will be hard to attract tenants, but it’s too low, you’ll be losing money instead of profiting from your property.

Ensure long-term tenants

If you fail to get long-term tenants, you’ll have to deal with a number of issues like lost rent; needing to clean the property; constantly change locks, repaint walls, make small repairs, etc.; and go through tenant screening properties most of the time. These things are quite expensive and can be prevented when you have a good residential property manager.

Rent collection becomes more efficient

Collecting rent and late fess are an integral part of property management. To make sure that you have a steady and reliable cash flow, collection should be made monthly, and your tenants should be able to understand that.

You also don’t need to concern yourself too much on evictions. A property manager will be able to handle this well.

Lower costs of repair and maintenance

Your tenants would appreciate it if you offer excellent maintenance. Doing so also preserves the value of your assets. A property manager allows you to have access to professional maintenance and whole new network of licensed contractors. This helps save you a lot of money as opposed to looking for people to hire from the yellow pages.

Increase the value of your property

Prompt identification and repair of any maintenance issues lets you avoid more expensive problems. An experienced property manager will tell you that you can increase and maintain your rental property’s value by conducting preventive maintenance. This will entail regular maintenance checks, a maintenance schedule, and documentation.

A residential property management firm allows you to manage your rental properties without taking too much of your time.