If you own a commercial property, you always seek out ways to maximize your investment. In today’s complex real estate market, it’s tricky for the commercial property owner to generate higher returns. As such, all wise investors are well aware of the importance of finding the right commercial property management firm. This is because efficient property management is the backbone of any commercial property to reap most benefits.
A commercial property management company takes care of the day-to-day responsibilities that come with managing commercial property. They make sure to significantly enhance the overall value of your commercial real estate asset to generate higher returns. Clearly, as a smart property owner, you also need to find an experienced and reliable real estate manager to get the maximum return on your asset by enhancing cash flow, retaining tenants, and increasing value.
A competent real-estate manager can safeguard your investment and keep your tenants satisfied, however not all property management companies are the same. In fact, choosing the right property manager can make or break your real estate investment. So, here are some tips to consider while hiring a commercial property management company.
Verify License, Insurance, and Affiliations
Always begin your search by looking for licensed and accredited firms. It’s necessary to check their licensing documents to verify that they are a legitimate business. Also, check what kinds of properties they manage and ask for a list of references. In addition to the legal requirements, check the firm’s insurance coverage. The company should have a fidelity bond to protect against any loss through the fraudulent acts of employees. Moreover, look for accreditations and specialized designations such as Certified Property Manager (CPM) or Real Property Administrator (RPA). If a firm is affiliated with any property management and/or real estate organizations, it indicates a better understanding of many aspects of managing investment real estate.
Tenant Retention and Relation Procedures
The efficiency of property management depends on tenant retention. The property management firms understand that in a tenant-driven economy, the tenant retention plan plays a crucial role. So, make sure you know what plan the firm has in place for your building. The tenant retention plan should outline efforts to maintain relations for the duration of the tenancy. The property management company should be considerate to tenants’ needs and should have a written policy for resolving tenant concerns. Ask the real-estate manager that what plan is in place to retain tenants now and upon their lease expiration. Also, check tenant move-in and move-out policies, after-hours contact systems, and emergency procedures. In addition to this, it is the responsibility of the management company to negotiate all tenant leases and renewals.
Other Services to Expect
A qualified and experienced property management firm offers various services, so check what services are included in your agreement. Other services provided by the company include market rent analysis, maintenance program, and financial reporting. They will also collect rent and obtain competitive bids. If you want marketing services, some companies even develop programs to improve the image of properties and ensure successful leasing. They will also take care of the documented procedures.