When you invest in commercial real estate, you sign up for a long to-do list that includes compliance, rent collection, tenant retention, and more. If you’re like most investors, you likely don’t have the time to carry out these duties yourself. That’s where a reputable commercial building property management company comes in. By partnering with a company that understands your goals, you will be able to guarantee your commercial property’s success and strengthen your bottom line in the long term.
In this post, we’ll go over the typical duties of a commercial property management company. We’ll also explain why working with a property management firm should be non-negotiable, regardless of the type of property you’ve invested in.
What Is a Commercial Building Property Management Company?
Commercial property management is designed for commercial real estate owners who want to outsource their day-to-day duties to a team of professionals. When working with a third-party company, you’ll get a commercial property manager who’ll handle all details, from collecting rent to making sure the property is well-maintained. They will do everything that you’d otherwise do yourself.
Many commercial property owners choose to partner with a commercial property management company so things go smoothly. Since not all property owners have the time or know-how, outsourcing their to-dos to a company that can is the only solution. Ultimately, the company’s goal is to make sure the property continues to make money in the form of rental income for the long term.
It should also be mentioned that commercial properties are big properties. And the larger the property, the greater the responsibility. The scope of operations will be much more complicated, which means basic knowledge won’t cut it. To successfully run a commercial space, you’ll need the capabilities that only a commercial building property management company can bring to the table.
What Does a Commercial Building Property Management Company Do?
Services vary by commercial building property management company, and in some cases, they can even design a property management package tailored to your property’s needs. But in general, here’s an overview of a property manager’s obligations:
#1 Building Maintenance
Commercial property owners are obligated by law to provide their tenants and visitors with a safe space. To do that, they have to constantly carry out repairs. And given that commercial properties (particularly shopping centers) tend to deteriorate at a faster rate, preventive maintenance is a must. Furthermore, commercial property managers will create maintenance plans to ensure that common areas are in good shape. By doing this, they’ll be able to preserve the property’s condition, protect renters and customers, and save themselves from costly repairs.
A well-maintained property is also more appealing, meaning it draws more potential tenants to it. More tenants mean more customers and ultimately, more money. Plus, when you keep your property well-maintained, your current tenants will be more likely to renew their lease agreements.
#2 Contractor Coordination
Commercial property management companies can’t maintain your property on their own, which is why they partner with multiple service providers. The advantage of hiring vendors through a property management company is that they can offer their services at competitive rates (in exchange for consistent work), helping you save more money.
Commercial property managers will also review all service contracts to ensure they’re cost-effective. Negotiating with contractors is also one of their strong suits, as one of their goals is to lower your overhead costs. And if your commercial tenants want to hire their own contractors (to improve their space), they’ll make sure that the work is done safely and that it meets the company’s standards.
#3 Tenant Acquisition
Vacancies are an investor’s worst nightmare. Without tenants, your commercial property won’t be able to generate rental income, and unfortunately, even if your property is vacant, you’ll still have to pay your bills. Commercial property management companies are well-aware of this need, which is why they waste no time in placing tenants. They know what type of tenant suits your property, and can market it in a way that attracts them.
Aside from finding tenants, commercial property management companies can help screen tenants. Most companies follow their own tenant screening process that involves running a credit check, confirming their source of income, and reviewing their rental history. That way, they can make sure your tenants can pay their rent on time, won’t be problematic, and won’t be hard to deal with.
#4 Tenant Retention
Once they’ve found good tenants, they’ll do everything in their power to encourage those people to renew their lease year after year. That way, your cash flow won’t have to suffer due to vacancy.
Commercial property management companies are pros when it comes to tenant retention strategies. For one, they’ll maintain constant communication with tenants, as being able to address their concerns is one of the main contributors to their satisfaction. Plus, they’ll invest in property improvements so it continues to attract customers.
#5 Financial Management
Accounting is one of the most challenging parts of property management. If you don’t want to do the math, a commercial property management firm can do it for you. Not only will they create reports that detail the property’s financial standing, but they’ll also maintain records of bank statements, bills, and more. They’ll also be able to help you set (and stick to) a budget that considers all possible costs.
#6 Legal Advising
Owning a commercial property means you’re going to have to abide by more legal regulations. Understanding these regulations can be time-consuming, not to mention confusing since the law tends to change a lot. When you hire a commercial building property management company, you’ll be able to reduce the risk of legal trouble and protect yourself from any pitfalls. A good property management company will undergo constant training to stay up-to-date with commercial real estate laws.
Commercial Property Management Is Non-Negotiable
Hiring a commercial property management company is a must for any real estate investor, whether they own a shopping center, office, or multi-unit commercial space. With a property manager by your side, you’ll be able to say goodbye to the risks of running things by yourself. You can take advantage of their experience and expertise.
Consider Luxury Property Care as your partner in commercial real estate. Our real estate experts have managed a wide variety of commercial properties, ranging from small offices to massive malls. Speak to us today at (561) 944 – 2992 to discuss your property’s needs or request a commitment-free quote for our services.
