Commercial Property Management

Real estate investors often find that commercial real estate investment is a wise and safe choice. However, real estate investors do not put their money into a commercial real estate property without having certain safety guards in place. A wise commercial real estate investor does not make a quick decision and takes the time to research the statistics and profitability of a commercial property before purchasing or investing.

One such safety guard to protect the commercial property is a commercial property management team. These management firms are designed to maintain the daily tasks of running a commercial property, which may offer office or retail spaces to rent. Whenever a commercial property, such as a mall or shopping outlet, offers space to rent, the commercial property management team will make sure that all legal contracts, State and local laws are upheld between the tenant and landlord. The management team will also maintain financial records and all the necessary bookkeeping. This can easily become a full time job for a team of management professionals, so one can easily see that it would be impossible for the real estate owner to take on all these tasks himself.

Having a commercial property management team is not only a convenience to a real estate owner or investor, it is indeed a necessity. This is especially true when the commercial property is very large with very many spaces for rent, such as an office building complex or shopping mall. The paperwork and maintenance list becomes overwhelming for just one property owner to manage when the rental units are more than 3 or 4.

Property investors may also invest in several properties. Keeping all these properties straight and maintaining the proper records could quickly become an entangled mess if one were not trained and qualified in the commercial property management field. This is why most investors choose to leave it with the professionals.

A commercial property management team should be able to offer you some or all of the following, maybe more if you take a good look around.

• Collecting rent
• Following correct eviction procedures
• Reporting on utilities used by each tenant, if not paid by each tenant
• Understanding commercial property laws and restrictions
• Ensuring all building structures are up to code
• Keeping routine maintenance on the building
• Keeping the lawn cared for
• Ensuring the parking lot is in good condition and meets legal requirements
• Advertising for rental space available
• Studying rental rates in the area and establishing rental increases when necessary
• Paying any mortgage notes or liens against the commercial property or building
• Handling any requests or complaints placed by the tenants

Clearly, the benefits of hiring a professional management team are great. However, a real estate investor does have a few choices in how to go about finding the best team.

The first option is to outsource and hire a management team that is already established and has experience handling other commercial properties. This team usually charges a percentage of collected rent or may charge a flat fee.

The second option is to hire your own team of property managers. The advantage of having your own team is that they will be devoted to your property and, as you acquire more, they can take on the added workload.

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