The Benefits of Property Management for Commercial Property Owners

What Are the Benefits of Property Management for Commercial Properties?

Managing commercial properties can be a lucrative business, but it can also be a stressful and complicated one. If you’re not capable of maintaining the best tenants, or if you get bogged down in menial responsibilities, your once profitable property portfolio could run the risk of collapsing.

One option is to work with a property management company. But how exactly does this type of property management work?

How Property Management Works

Property management companies essentially manage commercial or residential properties on your behalf. Depending on the nature of your agreement, these companies will usually take care of things like tenant screening, rent collection, property maintenance, issue resolution, and even eviction when necessary. In exchange, you’ll typically pay the property management company a fixed portion of your gross collected rent.

The obvious benefit is convenience. But as we’ll see, there are even more material benefits of utilizing a property manager.

The Benefits of Property Management for Commercial Property Owners

These are some of the top benefits of property management for commercial property owners:

·         Time savings. Most people are drawn to this type of service because it saves them incalculable time. If you were to manage all of your commercial properties by yourself, you might literally run out of time to do everything. Delegating these responsibilities allows you to focus on more important matters – and it spares you from some of the most tedious and annoying tasks of the process.

·         Cost savings. Even though you’ll be paying for these services, they can save you money in the long run. Having a competent property manager who can handle issues on your behalf and secure good tenants means you’ll have less costly issues in the future.

·         Better tenants. Bad tenants can ruin any rental property management strategy. In the commercial space, bad tenants aren’t as big of a concern; you’ll typically be working with established businesses with reliable streams of revenue. Even so, tenant screening is still important, and your property managers can take care of this on your behalf. With better tenants in your commercial properties, your entire portfolio is going to perform better.

·         Streamlined operations. Commercial property managers are experienced teams of experts who probably manage hundreds, if not thousands of individual units. They have the knowledge and backgrounds necessary to streamline your operations and handle things in an efficient, controlled manner.

·         Liability limitations and support. Some people appreciate commercial property managers because they control for certain liability issues and provide support in legal matters. For example, if one of your tenants breaks a lease or commits egregious offenses, they can step in and handle the issues for you.

·         Issue resolution. Speaking of issues, commercial property managers are experts in issue resolution. If and when disputes arise between you and your tenants, they can serve as an intermediary and dispatch the issue as soon as possible. Not only will this save you from having to interact with your tenants directly while they’re experiencing peak frustration, but this should also facilitate smoother relationships overall.

·         Reliable repairs and maintenance. One of the biggest headaches associated with managing any rental property is dealing with repairs and maintenance. To maintain your commercial properties, you’ll need to maintain a fixed schedule and employ consistent practices. To deal with repairs, you’ll sometimes need to take emergency calls and coordinate contractors during inconvenient hours. In commercial properties, after-hours complaints aren’t as big of a deal, as commercial buildings typically operate only during standard business hours. Still, mitigating repairs and maintenance issues will be a massive relief to you.

·         Improved properties. There are many ways to improve a property, most of which can simultaneously increase the objective value of the property and encourage new tenants to stay there. Your commercial property managers can help you identify potential weak points in your commercial buildings, so you can make renovations or repairs to improve them.

·         Strategic guidance. In many cases, your commercial property managers will be willing to offer you strategic guidance. If you plan on expanding your portfolio or making major changes to your existing commercial properties, they can help you make sound financial moves.

The Costs of Property Management

Remember, working with property management companies isn’t free. But considering the services and benefits you receive, the price is usually quite reasonable. Working with a team of experts and delegating most of the responsibilities of keeping up with your commercial properties are irreplaceable, indispensable perks.

Is working with a property management company for your commercial properties the right move? That depends on the nature of your properties, your strategy, and your budget. But for many commercial property investors, having a third-party management service is a massive advantage.