Renting out your property comes with benefits but also with risks. For commercial property owners, it can be stressful to deal with the many potential problems that arise with a property if they are not properly equipped with the resources, connections, and expertise on how to act fast. If a pipe bursts, a roof leak emerges, or a door gets busted, you need to act quickly to resolve the issue. Of course, issues with commercial properties extend much further than relatively simple maintenance issues.
How can a commercial property manager help make a landlord’s life easier? Here’s how they can help property owners maximize their passive income and lessen their expenditures.
Top Issues Faced by Commercial Property Owners
Owning a piece of real estate can be a smart investment, but if not handled correctly, it can quickly become a money pit. So, if you own a commercial property, you are likely looking to lease it or rent it out as office space or for other businesses to operate out of. So what are some of the most common problems you might encounter:
- Below market rents: In order to maximize your potential income, you want to research the market and make sure you’re getting rates dictated by the market.
- High maintenance costs: Every property will see its wear and tear with each tenant, but surprise expenditures can add up quickly.
- Lack of inspections: Any commercial or rental property should have regular inspections to ensure there are no liability issues.
- Bad tenants: Most rental property setbacks occur when proper screening is not done and a bad tenant lands on the property only to cause major headaches and worry.
What is the Role and Responsibility of the Commercial Property Manager?
Managing a commercial property is a lot more footwork than first meets the eye. Property managers don’t sit back and collect rent. Their responsibilities to their tenants and their owners are plenty.
Many property managers also own rental properties as they manage other people’s. Having a manager that owns property too can be beneficial. In the industry, this is called the owner mindset. There is a very specific stress associated with renting out your property and managers that own real estate get to know it well and can therefore sympathize with their client’s needs.
Property managers typically have operational and financial responsibilities related to the property they oversee.
- Executing maintenance plan or necessary maintenance
- Communicating and responding to tenant requests
- Collecting the rent
- Taking care of evictions when necessary
- Processing the rent payments and payments to owner
- Creating budgets when necessary
- Performing market analysis or writing up reports to ensure expenditures
So Why Hire a Property Manager for your Commercial Property?
They are problem solvers and experts in the real estate realm. When you find an experienced property manager, they are well-versed in a variety of areas including real estate, market prices and analysis, and maintenance and repairs. Their experience also means they are well-connected to repair services and contractors that help them address problems immediately.
Here are 5 Problems a Commercial Property Manager Can Help You Solve
A commercial property manager specializes in running operational facilities, offices, or other types of commercial property. Because of the varying purposes the properties are used for, they must be knowledgeable in handling a variety of problems.
Here are some common problems they can help you solve:
#1 Maintenance and Repairs
Most property owner horror stories revolve around maintenance or repairs gone wrong. Whether you are talking about a residential home or commercial property, it requires regular maintenance and attention to its plumbing, electrical, and structural systems.
#2 Taking Care of Tenants
Assisting tenants and addressing complaints or concerns. From small leaks to major flooding, tenant concerns must be dealt with right away. If you’re a property owner trying to manage a property from out of town or while having another job, this can quickly become too much to bear. Property managers are there to answer these concerns.
#3 Payment Issues
The coronavirus pandemic created havoc for tenants and owners alike. Now that things are normalizing, however, it’s back to business as usual in collecting and processing rent payments and fees. If there is a problem with a tenant failing to collect rent, a property manager has the legal understanding and capacity to approach the tenant and resolve the issue. State tenant laws can get complicated. Payment issues are best resolved with people that understand these laws.
#4 Underperforming profitability
If you’re renting out your property, you may find it difficult to keep the units occupied. Property managers help solve this issue by employing their established marketing tactics and resources. Through the right marketing and outreach, properties can fill with the right tenants.
#5 Finding and vetting tenants
As mentioned above, bad tenants are the #1 problem when it comes to rentals. And yet, plenty of screening processes exist to get a better idea of who is planning on renting. Everything from background checks, credit checks, and employment screenings can help property managers assess their options and find the right tenant.
Find Outstanding Commercial Property Management Services in El Paso
El Paso is a growing city with plenty of opportunities in various industries. This makes it a great market for rental properties and investments. If you have a commercial property that you want to turn into some equity-building or passive income, call a property management company that knows the business.
Ready to get your property to work for you? Call Hiett & Associates and learn how we can help you.