Owning commercial real estate can be rewarding, but what many investors forget is that it’s very time-consuming and takes a lot of work. Compared to managing residential properties, managing commercial properties is a whole new ballgame. Not only will you have to oversee a massive space, but there are also more considerations, more tenants, and more responsibilities. Considering how big of an undertaking it can be, it can benefit you to hire a commercial property management company to maximize your return on investment (ROI).
In this article, we explore the reasons why you should partner with an investment management company to scale up your commercial venture.
#1 They have the marketing expertise
Even if your commercial property is vacant, you will still have to pay for expenses such as taxes, employee salaries, and more. Without rental income to cover your costs, you will have to pay out of pocket, and soon, you’ll likely find yourself in financial ruin.
The marketing know-how of a professional property management firm can make sure you swiftly secure tenants. They know the best places to list your property in order to draw in potential tenants, such as the MLS and social media sites like Facebook. By making multiple listings, they’re able to secure good, long-term tenants. Furthermore, many companies already have clientele that may be interested in your properties.
Plus, a property management company will actively seek out and vet prospective commercial tenants even when your property is currently occupied. That way, there will be no gap between two tenants in case one decides to terminate their lease agreement.
#2 They handle tenant relations
Remember, your tenant base will be in the hundreds, so you’ll have to be prepared to deal with a variety of problems. If you don’t have the time to handle tenant relations, a commercial property management company can come to your rescue. Since they’re the ones on the ground, they will be the first to find out if there’s anything that needs to be dealt with, whether it’s a conflict between tenants or a maintenance concern. They’ll also be available to listen to your tenants’ opinions on how to improve your commercial operations.
Additionally, a property manager will help maintain tenants’ happiness in the long term through a tried-and-tested tenant retention strategy. Working with a property management firm also means you can avoid awkward conversations such as evictions. Your property manager, who is well-versed in legal procedures, will deal with the eviction for you.
#3 They make sure rent is paid promptly
Rent collection in commercial properties tends to be more complicated as the contracts may vary in terms of rate, due dates, and periods, particularly in big commercial buildings with multiple tenants, such as shopping centers. Professional property management firms have procedures in place to make sure your tenants pay you on time every month. Furthermore, they invest in tools such as tenant portals to help your tenants pay without inconvenience.
Property management companies can also be counted on for accurate bookkeeping. They maintain up-to-date records of rent payments and penalties for late payments. This meticulousness can come in handy in case of tenant disputes. For example, if one tenant asserts they were wrongly charged for late rent, your company can refer to their records to see when exactly they paid their rent.
#4 They conduct routine maintenance
There’s more to maintain in commercial real estate, from common spaces to the admin offices. This means you have more people to “please”, including your tenants, their customers, and your employees. There’s also more at stake – if your property is poorly maintained, people won’t want to visit. Low foot traffic means your commercial tenants won’t have customers, which means they won’t be able to make money to pay your rent.
Furthermore, the value of your property can decrease if you don’t stay on top of maintenance and repairs. A commercial property manager is aware of this, so they will prepare a property maintenance plan to ensure its needs are constantly met. Many companies use property management software to encourage tenants to report structural issues as soon as they spot them. That way, they can deal with them immediately.
#5 They’re well-versed in commercial real estate law
It can be confusing, not to mention time-consuming to wade through all of the legal requirements for commercial real estate. If you don’t have a good grasp of relevant laws, you could find yourself in lawsuits. The good news is that the risk of getting in legal trouble decreases when you work with a commercial property management company. Your competent team will run your property in full compliance with the law, and stay up-to-date with changes in legislation. Property managers are also well-aware of construction standards for commercial properties. They’ll make sure your property remains up-to-code as you improve it over time.
#6 They prepare the lease agreements for you
A commercial property management company will prepare all the necessary paperwork to make sure the lease signing process goes smoothly and according to schedule. Additionally, they will sort out the conditions of each of your renters’ contracts if there are variances such as the rental period, rate, and so on. To guarantee that your tenants get a good deal without compromising your income, they’ll also be open to negotiating contract terms, particularly for long-term tenants.
#7 They have vetted vendors
Commercial owners can benefit from lower contractor rates. This is because they’re able to provide vendors with a steady stream of work. However, if you’re new to the industry, you may have a hard time finding vendors. A property management company will already have a list of trustworthy vendors whom they’ve worked with for a long time. Commercial property managers have a reputable network of vendors who can be on-call to deal with last-minute repairs and maintenance work.
Scale Your Commercial Venture With Luxury Property Care
At Luxury Property Care, we’re here to lend you our expertise in commercial property management. From marketing your property to making sure you find good, long-term tenants, our goal is to help you secure success in your commercial real estate venture. Take your property to the next level by partnering with one of South Florida’s expert property management companies. Call us at (561) 944 – 2992 or complete our contact form to speak to one of our property managers today.
