According to billionaire Andrew Carnegie, 90% of millionaires gained their wealth through real estate.
If you’re looking to snowball your money and join that 90%, it’s time to start thinking seriously about real estate investment. But, a lot of people are put off by the amount of time it will take just to manage the properties.
This is where commercial property management comes in. With the right team behind you, making money from your real estate will be a breeze!
Learn more about how a property management company can help you in our guide.
The Pressures of Managing Property
Whilst commercial property investment is a big money-maker, it’s certainly not free of its fair share of pressures. As they say, no pain no gain! Here are just a few examples of the work that goes into managing your investment:
- Finding good tenants
- Keeping current tenants
- Dealing with tenants that don’t comply with your terms
- Maintenance work that needs to be managed
- Fluctuating budgets and cash flows
That’s just a small sample of the many situations you’ll have to deal with. At a moment’s notice, you could be called in to deal with an unruly tenant or a maintenance issue, putting everything else on hold. It’s not hard to see why you’d want someone else to manage all of this for you!
Property investment is a challenging venture that requires expertise, contacts, and persistence. You may avoid the time, effort, and hassles associated with property-related problems by hiring someone knowledgeable. This is one reason why you should consider property insurance for your business. It provides you with financial protection against losses that may occur during normal business operations. The insurance company contributes to paying the expenses of insured losses up to the limits of your policy. You could have to spend the charges out of your pocket if you don’t have insurance.
If you think those millionaires were managing their own properties, you’d be very wrong. They hired companies to do it for them.
What is Commercial Property Management?
A commercial property management company deals with your non-residential investments. These can include retail spaces, offices, shopping centers, and storage facilities. Essential, they deal with all the tasks that keep your property up and running, making sure you’re getting an income from your investment.
The company will have a whole team to take over your tasks. They’ll do everything from creating and renewing leases to getting a maintenance team out to deal with problems, as well as servicing properties and installing integrated systems to keep your sites secure.
They’re organized, meticulous, and have the time on their hands to deal with the problems you cant.
The Benefits of Hiring Property Management
Aside from relieving you of the many tasks that come with commercial property investment, what are the other benefits of a management team? Let’s take a look.
Bring in High-Quality Tenants
Your management team should bring in high-quality tenants to occupy your commercial real estate. They’ll have a process already in place to screen tenants, including interviews and background checks. They’ll make sure to find tenants who will pay their rent every month, stay for longer times, and be less troublesome than some.
Avoid Legal Issues
Legal issues can be a massive pain for real estate investors. If you don’t know the ins and outs of the law, it’s easy to get in trouble!
Luckily, a property management company will know the ins and outs. They’ll know real estate laws like the back of their hand and will stop you from getting in any trouble. From creating leases and evicting tenants, to inspecting the property and collecting rent, they’ll do it all by the book to avoid any legal risks.
Reduce Your Vacancy Periods
Vacancy periods are a nightmare for any real estate owner, commercial, or otherwise. Your property sits vacant and your income stops.
One of the roles of a good management company is to make sure you have short vacancy periods. As soon as your last tenant gives their notice, they’ll start hunting for new tenants straight away. They’ll market your property online, make sure it’s noticed, and work out the best rent to get new tenants in quickly without leaving you short-changed.
Collect Rent Efficiently
If you’re managing your properties on your own, it can be hard to keep up with rent collection. Spotting a missed payment isn’t as easy as you might think! Your management team will do this for you, making sure the rent is always collected on time and you have a reliable cash flow.
Lower Maintenance Costs
By dealing with maintenance yourself, you might find yourself paying more than you should for emergency teams. By hiring a property management company, you hand this role over to them. They’ll usually have a team on hand to deal with maintenance issues, and you’ll know that any problems are dealt with quickly and cost-effectively.
How to Find a Good Commercial Property Manager
If you’ve decided it’s time to hire a commercial property manager, it’s vital you find a great team to make sure you get all of the benefits mentioned above. Make a list of the type of company you’re looking for and the unique needs of your properties before starting the hunt.
If you know any other real estate investors, ask who they use, whether they’d recommend their team, and why. You can also ask in online forums and on relevant social media groups, but be wary of biased opinions here! You should also check online reviews for different companies, finding out what past clients think of the companies you’re looking to hire.
Find Your Property
If you’ve been thinking about investing in real estate but weren’t sure you had the time to deal with it, the benefits of a commercial property management company should have eased your mind. With a great team on your side, you’ll have nothing to worry about! So, what are you waiting for?
If you enjoyed this article, be sure to read more on our blog! We’re a property company run by experienced realtors, helping you find your perfect investments without the hassle.
