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:
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.
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.
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.