What is commercial property management?
Commercial property management, in summary, is everything related to the maintenance of the property. For example, keeping the property high in value, maintaining the grounds and generally supervising the properties. In a commercial role, this also relates to meeting customer needs, fixing broken items and even providing legal advice to the current tenant of the property.
What is a commercial property manager?
A property manager is hired by the owner to oversee the property and ensure the maintenance of this. Similar to a landlord, although instead hired by the landlord, property managers deal with anything related to the property.
What does a commercial property manager actually do?
Hiring a property manager will allow you more freedom to do your jobs whilst ensuring your property is managed to the highest standards. This will allow more free time for other business ventures, time to spend with family or just clear up room on your plate.
Property managers jobs include assisting landlords/commercial owners with the supervision of their property to ensure safety, providing services to the landlord such as lease price advisement, collecting rent from commercial tenants, budgeting of running costs for the landlord, advertising for further staff within the business, managing the accounts, repairs and maintenance for the commercial tenants among a wide variety of other jobs.
Why should you hire a commercial property manager?
Hiring a commercial property manager is an essential process once your business empire begins to expand. Taking on all jobs yourself can be extremely time-consuming and often impossible. Once commercial tenants move into a new property, this can often result in further assistance from a property manager or landlord. For example, during the first stages of owning the property, the commercial tenants are likely to have maintenance issues, potentially security issues among a wide variety of other challenges in which they face. Hiring a property manager will allow these issues to be dealt with immediately, not leaving your customers waiting around and becoming frustrated. Instead, the problem can be fixed straight away keeping your new tenant happy, increasing their experience and ultimately placing you in their good books for the high-quality customer service in which you supplied.
Knowledge of a commerical property manager
Knowledge of a property manager is also one of the key selling points to landlords. Property managers are often up to date on legal specifications and laws in relation to the property. This allows property managers to act as an advisor, informing you of the best route of action, protecting your best interests and also protecting the new tenants. This will save a lot of time, research and potential action in the long-run, providing you with legal advice year round.
Expertise in administrative duties
Property managers are also experts in administrative duties. This includes ensuring all paperwork is up to date and organised including lease agreements, complaints, insurance costs etc., creating and managing the budgets for all things commercial property and providing excellent customer service.
The budget for property managers is usually set by the landlord themselves, however, advised with the property manager. It is up to the property manager to manage all things commercial property as covered previously within this budget, providing the best job possible with the money in which they have available from the landlord.
Maintenance and repairs
If the job is unable to be done by the property manager themselves, then the property manager is in charge of hiring contractors and further staff to get the job done. Due to property managers generally being in charge of maintaining a large number of commercial properties it may be inconvenient for them to be working on small repairs, this is where contractors come in (and for much bigger jobs) in order to ensure correct running and service of the commercial properties. After all, the property manager cannot be everywhere at once, much like the landlord.
Preparing of present tennant analysis
Present tenant analysis consists of calculating how effective the current tenant is in terms of profits and reliability. For example, calculating effective rent per square foot, compliance with shopping mall regulations and how reliable the tenants are with payments such as rent and or lease agreements.
Collectiong rent, charges and other income
Property managers don’t just maintain grounds and repair things here and there, they are also your go-to person when it comes to chasing up dead ends and collecting debts and payments from your tenants. The property manager is in charge of ensuring all tenants pay up when required, any additional charges will also be chased along with any other income regarding any of the commercial properties owned by the landlord himself.
Managing many different commercial properties can place a lot of stress on move-ins to a new property if you are already busy as a landlord. Hiring a property manager will allow move-ins of new tenants to be coordinated effectively, with exact times set up, keys to be delivered and paperwork to be filled in with little effort on your part.
As well as tenants moving in, property managers are also responsible for ensuring tenants move out correctly and evicting tenants if they are failing to keep up with payments issued by the landlord.
Produce monthly and annual reports
Producing monthly and annual reports are essential for any business, allowing you to see money spent vs. profit made and ultimately allowing greater clearance going into the next year. This allows for new goals to be set in terms of what is working, what isn’t working and deciding what to target next in terms of property. A property manager is trained to produce monthly and annual reports whilst keeping all other paperwork in-line with the landlord’s commercial property. Furthermore, the property manager can offer advice based on their training and experience in the direction of your business and even help construct your financial goals for the coming year.
Inspection of property
Inspection of property can often be a difficult task for a single landlord, especially if multiple commercial properties are owned. Instead, a property manager can be sent out to the properties on scheduled or unplanned visits to ensure correct maintenance of the property, ensure tenants are complying with the agreement and generally ensure the commercial property is within good standing and is not deteriorating in value. If this is the case, the property manager can arrange services to maintain the value of the commercial property, ensure health and safety are followed and complied with and allow no slack to the rules as set out by the landlord.
Emergency commerical property tenant contact
Property managers can also be the first port of contact in an emergency. This will save you time and both energy at inconvenient times to be called to the property for an emergency. This may include water leaks, gas leaks and break-ins to name a few. Emergency contacts are more often than not to be contacted within the night, therefore, hiring a property manager will ensure you are not disturbed and can rest easy knowing your commercial properties are in safe hands.
Respond to emails
Responding to emails can often be a tedious task in any business setting. With constant clients and tenants requesting information and documents it can a stressful task and hard to stay on top of. A commercial property manager’s responsibilities also include responding to emails to all tenants and clients. This will include emails regarding lease agreements, mortgage options and payment/rent collection of tenants, all paramount to the business.
Have you ever misplaced reports or important documents and found yourself in a sticky situation? Hiring a property manager will ensure your reports are organised, files easy to access and on top of all the information which needs to be filled in. This will allow for a wide variety of business enquires and transactions to be handled in a much more efficient fashion, from locating invoices to responding to queries regarding the property.
Assisting in organising financial transactions
Although not able to directly send financial transactions on behalf of the landlord, the commercial property manager is able to help organise financial transactions, speaking to both the buyer and the landlord to arrange either convenient meet-ups or provide details for transactions to occur. Think of a property manager as your right-hand man, they can provide many different jobs all of which are essential to both maintaining and growing your commercial property business. Finding yourself without a property manager places additional strain on your finances and may potentially impact your ability to manage more properties due to being spread too thin.
Where do I find a commercial property manager?
If in the Los Angeles area, one solution is to go through the agency of Los Angeles commercial property management. These offer commercial property management across the Los Angeles area, from banks to shops, they have you covered for every need.