Commercial Property Management: What Is It and Why You Need It

Commercial property management leaves the commercial property owner with more free time and a better handle on his or her business. If you are a residential or commercial property owner, you know first hand how difficult and time-consuming it is to manage all of the facets of maintaining the property and buildings and managing the leases and tenants as well. Making good use of a reliable and reputable commercial property management company can help you stay on top of your business while enjoying the fruits of your investments.

If you own residential property but live far away from it, a property management solution will ensure that your investment is in good hands when you can’t be there to maintain the premises and solve day-to-day problems. A commercial property management company will take care of the day-to-day, month-to-month tasks and responsibilities of maintaining residential properties (and ensuring that proper maintenance includes safety checks to limit potential owner liability) by:

• showing the property to prospective tenants,
• finding qualified new tenants,
• collecting rents,
• managing leases and lease renewals,
• fielding tenant complaints,
• maintaining landscaping,
• dealing with repairs, and
• providing financial statements for accounting purposes.

Residential property management companies typically manage single family homes, condominiums, duplexes and large apartment buildings. Some property managers specialize in the types of properties they manage, giving the property the owner the benefit of their expertise.

Property management for vacation rentals is quite different from residential management. It is significantly more labor intensive because the rentals are very short-term, from as short as one night to as long as 3-6 months. It is imperative that a management company operate locally and understand the intricacies of this business. Maintenance issues, marketing activities to highlight the rental and keep it filled, and daily accounting are among the special responsibilities of the vacation rental management company. While the fees for such a service are typically higher than for residential property, the income generated from these rentals is also typically higher.

Commercial property management of commercial properties differs significantly from the management of residential properties. Commercial properties often require their own maintenance crews to handle the following:

• elevators/escalators,
• heating/cooling systems,
• plumbing,
• energy management,
• electrical and line safety.

Outsourcing maintenance and tenant management is particularly useful when the owner lives remotely. Physical presence local to the property is required to ensure the property is fully leased and tenant issues are handled in a responsible and timely fashion. You can find a commercial property management company that meets the needs of your particular investment by scouring online property management directories and carefully evaluating each company’s information and by diligently interviewing each local prospect.