Commercial real estate offers excellent investment opportunities for both individuals and businesses.
On the other hand, managing commercial property is no easy task.
The day-to-day operations require skills in marketing, tenant relations and maintenance, as well as a thorough knowledge of leasing agreements, employee relations and regulations.
Rather than navigating these complex issues on their own, many investors turn to an experienced property management company. Simply put, property management is when a third party oversees a commercial property on behalf of the owner.
Many investors find that property management helps them control costs, increase profits, and maximize value. Property management clients include private investors as well as developers of office buildings, shopping centers, industrial facilities, and apartment buildings.
Commercial One Management provides property management services in the Branson and Tri-Lakes area. Whether you're new to CRE or need help with an existing property, we're here to introduce you to the basics of property management.
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Benefits of Property Management Types of Property Management Property Management Responsibilities Cost of Property Management How to Hire the Right Property Manager
What are the benefits of property management?
There are many reasons why CRE investors turn to rental property management companies.
If you have multiple properties in your portfolio, managing the day-to-day needs of each one can be a daunting task. Plus, you may lack the expertise to handle the various aspects of property management, like marketing, maintenance, accounting, and more.
By hiring an experienced property manager, you can benefit from their expertise and skill set.
In-depth knowledge of property laws and regulations, the ability to perform maintenance and repairs, marketing skills to attract and retain tenants, and expertise in a specific category such as retail, office, or industrial.
A property management company handles the day-to-day operations for you, freeing you up to focus on other business activities. Hiring a property management company is often less expensive than trying to handle all of the management responsibilities yourself. Many landlords include the management fee in the common area maintenance fee paid by tenants.
Types of Property Management
First, property management services can be tailored to fit many different types of properties. Here are some examples:
Residential management manages rental properties on behalf of landlords. Examples include single-family homes for rent as well as apartments, condominiums, townhouses, and vacation homes. Commercial properties include office buildings and specialized spaces such as doctor's offices and co-working facilities. The commercial category also includes retail establishments such as shopping malls, gas stations, and restaurants, as well as hotels and similar public facilities. Industrial property management includes heavy industry such as automobile plants and light industrial facilities such as food packaging. It also includes warehouses and distribution facilities. Special-use facilities have unique characteristics that require specialized knowledge. Examples of this category include theaters, sports arenas, resorts, senior housing, schools, universities, and houses of worship.
Property Management Responsibility
Depending on your needs, a property management company can handle all operational activities or just some of the services. Successfully running a commercial property requires a number of important tasks, including:
Working with Tenants: Property managers collect rent on behalf of the owner. Additionally, they are also responsible for screening prospective tenants, negotiating and writing new leases, and renewing existing leases. Marketing the Property: Attracting new tenants and customers requires a thorough understanding of the business environment and market trends. Property managers devise and execute a consistent strategy to attract the most profitable tenants to the facility. Maintenance and Repairs: Property management teams may include a variety of professionals to keep the building and grounds in good condition. Services include landscaping, plumbing, roofing, and cleaning services. A good property manager will schedule preventive maintenance, recommend facility upgrades when necessary, and respond promptly to emergency repairs. Financial Responsibility: Property managers must create budgets and closely monitor expenses and revenues. They handle accounting, taxes, and other expenses, and maintain accurate financial records on behalf of the owner. Legal Requirements: Property managers must have a thorough understanding of all applicable laws and regulations at the local, state, and federal levels. Many companies even hire attorneys to ensure full compliance.
Property Management Costs
Property management companies typically make money by charging a percentage of rent, but they may also charge various fees for specific services – for example, some companies may charge a fee for signing new tenants or renewing existing ones, while others may charge an on-top fee to cover maintenance or advertising costs.
Factors that affect property management costs include location, quality of tenants, type of property, and services included in the management contract.
How to hire the right property management company
When choosing a property management company to manage your investment, there are a few criteria you should keep in mind.
Experience: Look for someone with a proven track record of managing the type of property you own. They should also have a good knowledge of the area where the property is located. Company Strengths: Find out how long the company has been in existence, its stability, and staff turnover. Reviews: Look for opinions of current and former clients. Read online reviews for the company's pros and cons. Qualifications: Most states require property managers to be licensed, so make sure the person you choose has the proper qualifications. Property managers can also earn professional certification as a Certified Commercial Manager through the Real Estate Management Association. Professionalism: Property managers are your face to tenants and customers, so you need someone who makes a good impression. The individual managing your property should be honest, sincere, and have good interpersonal skills.
Learn more about Branson property management
Many commercial real estate companies also offer property management services. Commercial One Brokers has over 60 years of combined experience serving the Branson and Tri-Lakes area. From maintenance and repairs to marketing and tenant relations, clients trust us for unparalleled service.
If you need reliable property management services, give us a call at 417-334-3149 or contact us online anytime.