So you've decided to invest in commercial properties...perhaps a shopping center. What do you do next? Many investors face that tough question. When reality sets in the task of maintaining and running a commercial property can quickly become overwhelming, even to the savviest investor. That is when they employ the services of an experienced commercial property management company.
What can an experienced commercial property management company do for you?
1. Collect all rent payments and deposit them into your account.
While collecting monthly rent from your tenants is often a challenge, a good property management company already has its own systems in place to ensure that rent payments are collected when they should be so as not to affect your cash flow.
2. Know what competitors are charging.
A really competent commercial property manager monitors the rental rates you are charging to ensure that they are priced just right for the area. This can be a key factor in securing and keeping good tenants for you.
3. Be Knowledgeable of All Pertinent Real Estate Laws and Statutes.
Commercial property managers stay abreast of important laws pertaining to your property to ensure that your real estate properties are in compliance and up to code.
4. Be a Masterful Marketer.
An experienced property manager is a master at handling all the current online and offline marketing and advertising opportunities to promote your property. These strategies will keep vacancies at a minimum.
5. Be Meticulous at Inspections.
The commercial property manager you choose should be vigilant in the maintenance of your property through regular inspections. It is important that they find and fix any problems before they grow into a larger issue before, during and after your tenant takes occupancy.
6. Have a Proven Ability to Keep Occupancy Rates High.
This can take a lot of a manager's time, so be sure he has the availability, staff and resources to handle this important service. A good property manager will handle aspects of securing the right tenants for your shopping center by conducting all the necessary background/credit checks, credit reports, etc.
7. Have Great Resources.
Experienced property management firms have spent time over the years forging important relationships with suppliers, contractors, maintenance workers, etc. who can save you time and money when making changes or repairs to your shopping center.
8. Be a Time Management Whiz.
Hiring a good commercial property manager to handle all the details concerning your center frees up your time to focus on other endeavors. Look for programs used by your prospective managers to indicate that they value their time and use it well. This will mean a more efficient and ultimately effective administration of your program.
9. Be Able To Manage Properties Anywhere.
Because it's not possible for you to efficiently monitor your commercial properties that are located out of your geographic area, an experienced property management firm with multiple offices or affiliates can make your life incredibly less complicated.
10. Financial Management.
Most commercial property management professionals also assist with your financial management strategies and charge investors a percentage of the monthly rental rate of the property, usually 3.5% to 6%. Savvy investors realize the benefits of a good property manager and gladly pay this fee.