Someone once said, “If you want something done right, do it yourself.” But that’s not always a true sentiment. Wanting something done right and having the skill and resources to do it well are two different things. So no matter how much someone wants a well-managed commercial building, if they don’t know how to handle property management, their commercial asset will suffer.
What Is a Property Manager
A property manager is a person or company who is responsible for the basic upkeep of the property and day-to-day tasks involved in commercial real estate (CRE). Their role involves everything from handling building maintenance to rent collection. The scope of their duties may vary per client.
The Benefits of Hiring a Property Manager
Saving Time
Owning CRE can be time-consuming, especially for those who own multiple properties. The more tenants, the harder it is to keep up with their different needs. Hiring a property manager saves the CRE owner the valuable resource of time. Rather than spending countless hours on the phone with tenants or associated maintenance partners, CRE owners can outsource those tasks to their property managers.
Working with Specialists
If the CRE owners intend to take on the role of property manager thinking it would be easier to do it themselves, they will quickly find that isn’t possible. At some point, the building will require a specialized service outside of their skillset, such as upgrades or maintenance. The structure will eventually need a new roof, new flooring, HVAC repairs, or even a complete remodel. In fact, many tasks will require a third party company.
Experienced property managers usually have an extensive list of businesses to contract for CRE-related needs. They have networked with other service industries and know what to ask before the project begins or what to double-check while the project is underway. As one of their regular tasks is to oversee contracted projects, they can pull from their experience and ensure they catch any issues before they become a costly expense for the building owner.
Tenant Screening and Rent Collection
Property managers are typically responsible for vetting new tenants to fill vacancies. Because they are familiar with the process, they have the resources and screening tools ready to select the right tenant for each property. And finding the right tenant is one step closer to timely rent payments.
Rent collection is another property management task. Property managers ensure that all tenants pay on time; and if the tenant defaults, then the property managers will enforce penalties. Rent collection can be an arduous task, especially in the case of tenants who consistently pay late. This is one avenue in which property management companies are particularly helpful. The property management company acts as the middleman between the two parties and helps to keep the tenant-landlord relationship intact.
Business and Legal Issues
Property management companies can also advise their clients regarding possible evictions, lease terminations, or basic legal requirements for the property and its tenants. They are an asset for building owners. Even though they are an added expense for the CRE owner, they can ultimately help save them capital. Their business savvy and understanding of the real estate industry helps them make skilled decisions on behalf of the building owners.
HBRE’s experience and skill in the CRE industry makes them an excellent resource for both property management and all associated real estate needs. They serve both tenants and landlords and are careful to navigate the tenant-landlord relationship. For more information about HBRE’s services, or their insights regarding the CRE industry, visit HBRE.us.
If you are interested in learning more about investing in commercial real estate, or if you have questions about buying, selling, or leasing a commercial property, please contact an HBRE advisor. Our team of experienced CRE professionals have the skills and insight to assist with all property transactions. To reach out to us directly, email [email protected] or call 615-564-4133.
