Managing commercial properties is not an easy task. You must communicate with tenants and be ready for the inevitable, late-night, emergency maintenance call. If you recently purchased commercial real estate, you may not want to take on the duties of commercial property management.
You may not wish to be the main point of contact for your property if you have a day job, live out of state, or have more on your plate than you once did. Property management services take on the role for you, supporting your tenants and lifting the burden from your shoulders.
Common Property Management Services
What does a property manager do? Everything you’ve been doing and more! Commercial property management companies offer numerous services—from accounting and legal help to property repair and landscaping. They keep track of day-to-day tasks and handle issues that arise with the property or your tenants.
Commercial property manager responsibilities can include:
- Rent Collection & Payment
- Maintenance Outsourcing
- Property Repair
- Legal Support
Property managers are the kind of “middlemen” you want to have around. Anything serious regarding your office, retail or warehouse space will be handed over to you. Your property managers will take care of the property’s daily operation, so you no longer have to be on-call, communicating with tenants or repairmen.
8 Advantages of Property Management
There are many reasons to consider hiring a rental property management company. Commercial property managers have the experience, network and know-how to ensure your investment runs smoothly. Here are a few advantages to working with one:
1. They Have A Wealth of Experience.
Like Commercial One Management, most rental property management companies are licensed real estate brokers. In Missouri, property managers who also rent and list land must have a broker’s license. Because of this, many management services have the experience and expertise to help oversee your property and stay up-to-date on relevant laws and regulations.
2. They Handle Rent Collection.
You no longer have to remind tenants about rent or struggle to determine how they should make a payment. A rental management company takes care of rent collection and payments for you. They can also help you set rent levels and guide you on how to write a commercial real estate lease.
3. They Are Masters of Marketing.
You might be wondering how to list commercial property or where to find commercial real estate. A property management company has firsthand knowledge of the local commercial real estate market and can answer all your questions. Take Branson, Missouri, for example. Commercial One has over 14 years of experience in the Branson-area rental property management industry. Experience like is crucial when marketing your retail or office property to new tenants.
4. They Communicate with Tenants.
You won’t need to hand out your phone number to tenants anymore. With property management, gone are the days of handling all tenant issues and requests. Your property managers will be the main point of contact for your tenants. They will address issues, collect rent and respond to maintenance requests.
5. They Respond to Maintenance Issues.
The majority of property managers coordinate maintenance and repairs. Companies may have a maintenance crew on staff or outsource to trusted service providers. Their vast network of plumbers, electricians, roofers, landscapers, and more means there will always be someone to call for maintenance issues. The best part? The rental management company will place the calls for you—sending someone they trust to your property. It has been our experience that these maintenance providers also provide their services at highly competitive rates as they are regularly bid.
6. They Keep the Books.
If you’ve just dived into the commercial real estate world, keeping track of your invoices, taxes, and records can be overwhelming and time-consuming. Leave the bookkeeping to the professionals! Property managers can assist with accounting and reporting, and they are happy to work with your current accountant.
7. They Save You Time.
Taking care of a property takes a lot of time and effort. Many property owners have day jobs and other responsibilities on top of overseeing tenants! Property management takes the weight off your shoulders. You’ll have one less thing to worry about and manage each day.
8. They Protect You from Liability.
Management companies know the ins and outs of commercial real estate law. They can help protect you from being liable as a landlord and reduce conflict with tenants. Many also have lawyers on retainer in case you need legal help or someone to draw up your lease agreements.
Property Management Fees
Fees for property management are often taken as a percentage of the collected rent. Nationally, management fees fall between 2% and 12% of rent. Depending on the property and its size, property management fees could be included in the common area maintenance (CAM) charges paid by the tenants.
The cost of property management depends on the building’s size, the number of tenants, and the location of the property. Smaller buildings could end up costing more in management fees because there are fewer tenants providing rent. Newer properties may sport lower fees, as managers expect fewer repairs and issues. On the other hand, older buildings may need more TLC now or in the future, potentially increasing management fees. If the property has unique amenities, maintaining those amenities could play into costs, too.
Property management fees also depend on what you want out of the service. Do you want full-service management or part-time support only when you need it?
Should You Hire A Property Management Company?
Hiring a property management company is the solution when you no longer wish to manage your property yourself. You should hire someone if you own several properties, live far from your properties, or don’t have the time to devote to them.
Property managers work to achieve your goals for the property, resolve any issues you have with tenants, and help maintain the space.
Do you need assistance with your property? We can help you discover commercial real estate in Branson, MO, or manage your property in the area.
Contact Commercial One today. We manage over 800,000 square feet of office, retail and industrial properties. We will manage your property like it’s our own.