Investing in commercial real estate (CRE) allows the buyer or buyers to take an active or a more passive role in the operation of the building. Most investors and investor groups use commercial property management services to handle the day-to-day issues and tasks associated with leasing, managing, maintaining, and working directly with building tenants. The right commercial property management company functions like a partner, working on your behalf to continue to generate revenue from the property.
The top commercial property management firms help investors to maximize their revenue over the life of the investment, resulting in a significant net gain over attempting to manage the property on your own or hiring a cheap, inexperienced CRE management service. It is worth the time it takes to complete due diligence on any prospective commercial property management company. Reviewing, researching, and evaluating the company’s services will help you choose the right service to hire to provide long-term, efficient, and highly effective property management services.
- The property management company history – while there is nothing wrong with working with a new commercial property management service, there is also no track record of the firm’s ability to provide the services you require. In choosing an experienced firm, you can ask for references, check reviews, and reach out to CRE owners in the area to find out about the firm’s reputation.
- Review the business model – how a commercial property management firm operates should be transparent and straightforward. There should be a focus on responding to tenant issues, creating the correct maintenance schedules for buildings, and working to reduce expenses while ensuring the building is always in optimal condition. This creates a positive image of the building in the community, helping to minimize vacancies and tenant turnover. In addition, the firm should work with your requirements, customizing services to suit the building and the specific strategic goals developed by the owners
- Handling tenants – an experienced commercial property management company is available to address tenant concerns around the clock. This includes having after-hour contact numbers that are answered by real people and not just voicemail recordings. It also means a firm that develops emergency procedures for each building they manage to proactively address situations that may arise.
- Software systems and reporting – the best property management companies use state-of-the-art software that allows easy access for building owners to reports and information that is up to the minute. This software is comprehensive, tracking all aspects of the management services and tenant information in one consolidated program. With this information, property owners know at a glance how the property is performing with tracking and analytics.
- Capacity – not all commercial property management companies are designed to manage all types of properties. For investors with multiple buildings or large commercial real estate holdings, a property management company must have the staffing and the infrastructure to ensure top service to both tenants and owners. This is also a factor for investors with interest in expanding their CRE investments over time. Working with one property management firm is more effective than multiple CRE management companies for different buildings.
Finding the best property management company will require research and a clear understanding of what you need. However, once this company is in place, you have peace of mind in knowing your investment is well-managed now and in the future.
