In the world of real estate management, there are many complexities to navigate. When it comes to managing commercial properties, these complexities can quickly multiply. Especially if you're an investor trying to handle the business on your own.
If you're a property owner of a commercial real estate investment, you might be considering a property manager who can help you navigate the ins and outs of running your office space rental.
Lucky for you, the right commercial property property management services are out there for you. Best of all, they can help you increase the value of your properties and expand your portfolio.
Let's dive into what commercial property management includes, and how it can help you with your real estate investment journey.
What is Commercial Property Management?
Commercial property management involves overseeing and operational care of commercial, industrial, or retail properties. This includes large office buildings, smaller office spaces, and retail spaces such as malls.
This means that a commercial property manager has to wear many hats. They deal with different types of commercial properties, are responsible for their clients' needs, and care for the tenants and the building in which they work.
As of 2023, quite a few companies manage properties for property owners like you. According to Strategic Market Research, there are over 83,000 commercial property managers in the U.S.
A property manager is crucial for commercial real estate investment. They increase your profitability while maintaining the value of your investment.
Differences Between Residential and Commercial Property Managers
Managing residential properties looks a little different than property management for a building used for business purposes. Commercial tenants will have different needs than residential tenants.
For example, residential typically requires more hands-on management. They have a focus on tenant relations and daily tasks.
On the other hand, property management companies dealing in commercial real estate often undertake more complex tasks. This can include having a unique insight into a specific property management software and the maintenance know-how to tackle a building with more square feet than a typical home.
Benefits of Hiring a Property Management Company
Hiring a property management firm for your property can significantly reduce landlord stress and increase returns on your investment. Here are just a few of the ways they can help you accomplish this:
Expertise in Property Maintenance: A property management company will have expertise in property maintenance, inspections, and repairs. This helps to prevent costly repairs and guarantees your property stays profitable.
Tenant Screening and Leasing Strategies: They'll have a team of experts fully equipped with strategies for tenant screening, retention, and property leasing. The team will be responsible for ensuring tenants are reliable and pay rent on time.
Financial Management and Accounting: Partnering with a manager will also provide you with real estate services to help you track income and expenses, and ensure your investment is profitable.
Other Common Services of Commercial Property Management Companies
Property Marketing: A common property management function is marketing and leasing services. After all, attracting tenants and filling vacancies is what it's all about. They are also experts in negotiating leases for your rental.
Rent Collection: Collecting rent is the best time of the month for an owner of commercial properties. A commercial property manager will have the tools and capability to collect rent on time and avoid late payments.
Compliance with Local Regulations: The industrial sector is home to its fair share of laws and regulations that give real estate owners headaches. A property manager will make sure your building is compliant and prevent the cost of fines and penalties.
Qualifications to Look for in a Commercial Property Management Company
Real estate investors like you need a management team of experienced professionals to handle the needs of their clients. One way you can verify this is by checking their certifications, such as the Certified Property Manager (CPM) certification or the Accredited Commercial Manager (ACoM) certification.
You should also look for a company with quality testimonials and case studies from other clients.
Factors to Consider When Selecting a Commercial Property Management Company
There are a few considerations you must make when deciding on a company to partner with. That way, you'll know that your rental manager is uniquely suited to your property's needs.
The first thing to consider is your property type and location. Is it a building with multiple units located downtown? A strip mall located near the beach? Or just one structure with a lot of square feet? You'll want a company that has experience handling other properties similar to yours.
A quality property manager will also have a proactive approach to management with solid communication skills. They'll offer a comprehensive suite of services that meet industry standards. When negotiating those services, they'll be competitive with others in the industry and won't hide other fees from you.
Challenges and Opportunities in the Industry
Common challenges to the commercial real estate industry would extend to any company managing property for you. This includes market changes impacting rental rates, changes to legislation, and maintenance emergencies.
The right company for you will have experience navigating the ebbs and flows of running a commercial rental.
Emerging Trends
The rise of the digital age has affected communities nationwide, and commercial property management is no different. Software such as Yardi, AppFolio, and Buildium are common solutions for improving efficiency in management.
You'll also find a prevalence of sustainable practices and eco-friendly solutions within the industry. Installing energy-efficient upgrades within a building can help improve tenant relations and your bottom line.
Commercial Real Estate Property Managers & You
As you look towards the next steps in your investment journey, we hope you're more prepared and ready to achieve growth with the help of a commercial property management company. When you begin to make that choice for a reliable industry partner, consider Axela Management.
Axela Management - Your Preferred Choice
Here at Axela Management, we have a proven track record of success with large real estate investments. In fact, we specialize in it! We understand client needs when it comes to commercial investment and we're prepared to help you take the steps you need to grow your portfolio.
Explore our services page to learn more about Axela and the next level service we can provide.
