Owning commercial real estate is one thing; managing it is another thing altogether. Owners often don’t have the time or the resources to effectively manage their own commercial real estate asset(s). Improper management can lead to loss of revenue and property deterioration, resulting in costly repairs. Selecting a skilled property manager to oversee your building can reduce your day-to-day responsibilities, allowing you to focus on the bigger picture items.
So what exactly are the responsibilities an experienced property manager can assume for you?
Rent collection is the primary resource for cash flow. It is imperative that a consistent cash flow exists for your investment to flourish. Nowadays, rent collection is a more streamlined process than actually collecting cash from tenants, however the paperwork and organization can still be time consuming. Allowing a property manager to handle these services not only frees you from the responsibility, but allows someone else to act as an intermediary should collection problems arise and/or evictions occur.
Reducing legal issues
Experienced property managers will be familiar with the various relevant laws, ensuring all policies are in compliance with federal and state legislation so that property owners avoid costly litigation. A few common legal issues that a property manager can help navigate to reduce the risk to the owner include code enforcement, tenant evictions, property damage and personal injury.
Maintaining the property
Effective property management includes the day-to-day maintenance of the property as well as identifying efficiencies and capitalizing on them to provide economic benefit to the owner. A professional property management team will have a number of procedures and schedules for preventative, curative maintenance and inspection programs to optimize the performance and preserve the life of your asset.
Enhancing the value of the property
It is important you enlist the help of a skilled property manager who understands how each aspect of the operation of the property can have a direct impact on the value. For example, maintaining your property at the highest standard results in satisfied tenants, allowing you to charge premium rental rates. These two combined will positively impact the value of your property.
Relying on a professional property manager affords owners a number of benefits including experience, professionalism and industry resources, as well as the freedom to allocate their time to other areas of managing their business. They can trust that their building is in the competent, capable hands of a knowledgeable property manager who has their building and their business top of mind.