A commercial property management company handles all of the day-to-day responsibilities that come with managing a commercial property.
The right commercial property manager can greatly enhance the overall value and efficient operation of the commercial real estate asset.
This will likely generate higher returns for the commercial property owner.
And the owner can then invest more into the property or in other commercial projects, creating more jobs and more opportunities worldwide.
All these benefits can be largely credited back to the hard, honest work of a top-rate commercial property management company putting in the work to make commercial property owners more of what’s affectionately known in the commercial real estate sales world as “mailbox money”.
When you go to the mailbox, and there are checks in there as a result of good decisions and efforts you made one time when you had the opportunity to do so.
Professional commercial property managers also have hands-on knowledge and experience for overseeing specific types of properties, including retail, industrial, office, and multifamily apartments.
Using a commercial property manager not only helps save commercial property owners hours of time but alleviates much of the stress and headache of handling day-to-day responsibilities like maintenance and repair issues, collecting rents, handling tenant complaints, and evicting bad tenants.
Why use a commercial property management company?
The commercial property owner benefits from using a property management company by saving time handling maintenance issues that arise with a property and having the peace of mind in having an on-call professional on or near the premises when a tenant needs assistance.
In addition, the commercial property management company is an independent contractor, helping commercial owners to avoid the headache of being an employer.
What do smart property owners do when choosing a commercial property management company?
1. They search property management companies that specialize in their specific type of property.
It’s good to get recommendations from trusted sources, however it pays to do your research and not go with the first one that’s mentioned. Some property managers only specialize in residential properties, whereas others specialize in commercial property, and others may do both.
Also, make sure to ask what types of liability insurance the property manager has to ensure this fits with your type of commercial property.
2. They always perform due diligence on the commercial property management company by calling all references.
A simple way to do this is to call the title company of an address managed by a prospective commercial property manager (look for outside signs on commercial properties that indicate which commercial property management company runs the building).
You can explain that you are also an owner and you are researching commercial property management companies, and you’d like to get in touch with their client to get feedback on their property manager.
Since title companies are always looking for new owner clients, they’ll likely help you get in touch with their client who owns the building in hopes of getting your title business.
Owners can get in touch with the property’s owner to ask about the commercial management services. It’s also a good idea for owners to inspect a few of the properties that the commercial property management company maintains and take note of the condition of the premises.
Poorly maintained or ill-repaired commercial properties may indicate the commercial property manager might not be worth their fee (which is typically a percentage of the monthly rent).
3. They work with a commercial real estate agent to lease the property.
This is a protective measure to help eliminate any future conflicts of interest, and when it comes to your commercial property that generates revenue, this is something you would want to take into serious consideration.
According to many commercial property owners in the know, one of the best commercial real estate firms in commercial leasing services in Upstate New York is Cushman & Wakefield / Pyramid Brokerage Company.
4. They specify any preferred third-party vendors in writing.
If an owner has used certain service providers (such as maintenance repair companies) in the past with good success, he or she should specify to the commercial property management company to employ those specific individuals on the owner’s behalf and place that in writing in the contract.
5. They request from the commercial property management company any additional fees that may be assessed.
This will help prevent any future surprises for the owner and ensure all parties are aware of the financial situation regarding the property.
Depending on the size and responsibilities of the property, hiring the right commercial property management company could mean the difference between a profitable long-term commercial investment and a money pit.
The right commercial property manager can make an owner’s life much easier and enhance the financial returns of the real estate asset. That’s why it’s such a critical process to take your time in researching and doing your homework when selecting an experienced and professional commercial real estate property manager for the job.
James K. Kim
James K. Kim (Jim) is a commercial real estate advisor with Pyramid Brokerage Company of Albany, Inc. in the Capital Region of New York, specializing in helping business owners expand into new locations or sell/lease a commercial retail, office, industrial, or investment property.