A landlord's job isn’t as cushy as stereotypes would have you believe. Running and managing a rental unit takes time and energy - a lot of it. Every additional property you have to manage adds more to your list of responsibilities - and the ongoing stress.
A property management company can handle most of these tasks so you can focus on other areas of your business. Whether you want to add more income streams, add another property to your list of assets, hiring a commercial property manager can help you get closer to your goals.
So What Does a Commercial Property Manager Really Do?
Commercial property managers add value to your rental business by saving you time and money. They often have a team of professionals to handle different aspects of the business. Their most valuable services include accounting tasks and management services such as day-to-day maintenance.
Owners of commercial properties must provide their tenants and the public with a safe space. This is possible by carrying out routine inspections and scheduling preventive maintenance to solve problems before they occur. There will be a need to carry out ongoing repairs to keep the building and assets in working conditions.
A commercial property manager has access to a network of nearby trustworthy contractors who can keep a property in good condition - at a discount. They keep your assets protected by:
Staying on top of maintenance needs and repairs promptly. Their network of contractors includes plumbers, electricians, and other handymen who they can call during emergencies. This ensures that tenants won’t have to deal with dangerous conditions such as exposed cables, floods, power loss, and other problems that could damage rental income.
Carrying out safety inspections such as checking for gas or water leaks, removing waste, and clearing out pests from the area.
Other responsibilities of a property manager include:
Reviewing contracts with handymen to ensure that their services are cost-effective
Creating preventive maintenance programs to make the property more appealing to tenants
Managing all maintenance and cleaning personnel
Commercial property managers play a crucial role in helping landlords achieve their goals for their property. This means providing an assortment of financial services to gain more insight into the unit’s performance. According to these Fort Worth property managers a monthly financial statement is usually generated and may contain different pieces of information, including an income statement to track expenses and a general ledger to review all monetary transactions related to the property.
The financial statement may also include details about any outstanding balance tenants may have. This includes details about payment plans and possible problems that could help the owner get more insights about their property.
It helps to have all these expenses in a single financial statement to decide if the unit fulfills the landlord’s financial goals.
As you can probably tell, commercial property managers also have the task of collecting the rental amount. Other duties include:
Setting the most appropriate rental amount to attract tenants to the property
Facilitating smooth cash flow by collecting rent on time and imposing penalties o delinquents
Keeping the rental business profitable by increasing the rent as outlined in the lease draft.
Finding New Tenants (and Keeping Them)
Commercial property managers also have the task of finding new tenants and keeping them: Their responsibilities may include:
Finding new tenants for vacant units
Screening applicants using processes such as credit checks and running a criminal background check
Dealing with maintenance requests
Serving notices and eviction for tenants who don’t pay the rent or violate the lease agreement
Things to Look for in a Commercial Property Manager
A good property management company will have several years of experience in managing similar properties with a long list of happy clients. Try to learn about the type of investors that the commercial property manager usually deals with.
As a rule, the firm you hire should have experience in serving your particular industry and the type of property because the reporting standards for each investor are different.
Need a commercial property manager near you? Get in touch with us to find an experienced professional today!