The Role of Commercial Property Managers in Real Estate
Managing a commercial property is a full-time commitment that can consume a property owner’s time and attention, making it difficult to focus on other investment opportunities that could generate revenue. Thankfully, hiring a commercial property manager relieves many responsibilities of maintaining an asset while entrusting it to reliable hands that can maximize profits.
What Is a Commercial Property Manager?
A commercial property manager is an individual or a service company responsible for running a property’s day-to-day operations. Property managers oversee real estate properties such as hotels, shopping malls, hospitals, office spaces, and other businesses that generate revenue. They ensure they are filled with reliable tenets that can respect and provide merit to an occupied space. If there are any issues, questions, or concerns with a property regarding payments or repairs, they are handled by the property manager.
The property owner decides upon the number and type of property managers. Depending on the industry and size of a commercial property, management can consist of one or two individuals or even an entire team that works collectively to run an investment.
Why Are They Important?
Running a commercial real estate property takes considerable time and focus that some senior management teams may not have readily available. Poor commercial real estate property management can lead to reduced profits, impacted public perception, and negatively impacted property value.
That’s why commercial property managers are such valuable assets. Outsourcing commercial property management responsibilities is an excellent way for investors to scale and grow their portfolio without the hassle of maintaining certain aspects of an investment themselves. Hiring an experienced property manager ensures that a building is being taken care of both financially and physically, allowing property owners to divert their attention to other business matters such as investing and acquiring additional assets.
What Does a Commercial Property Manager Do?
The duties of a commercial property manager are extensive, as they are entrusted to handle any matters concerning the owner’s investment. Responsibilities of a commercial property manager include:
- Responding to Tenant Requests: A competent property manager responds to the needs of tenants accordingly and does their best to retain them long-term by establishing solid relationships.
- Screening Tenants: Not all tenants are created equal, and it’s the job of property managers to assess and determine whether potential candidates are a worthwhile investment.
- Collecting Rent: It’s up to property managers to collect and process rent promptly by making the process as streamlined as possible. If rent is not paid on time, they must notify the tenant of late fees and additional repercussions.
- Building Maintenance: Commercial maintenance requests from tenants and routine building maintenance from hired contractors are all conducted through the property manager. They ensure that repairs or additional maintenance requests are completed quickly and correctly.
- Capital Planning and Budgeting: Commercial property managers are responsible for managing a building’s expenses, including marketing costs, operating costs, repair costs, and more, using a created budget. Capital planning and budgeting ensure it is on track with its projected gross revenue.
- Negotiating Leases: Rent can fluctuate over time, and commercial property managers must ensure their lease prices are competitive with similar businesses in the area. Additionally, they must negotiate leases to navigate inflation without running off current tenants.
- Managing evictions: When tenants fail to pay rent for extended periods or severely violate the terms of their lease agreement, property managers must conduct the eviction process to remove them from the premises.
- Commercial Property Marketing: When a property is unoccupied, the manager needs to properly market the available space to prospective tenants interested in finding a new office space for their business. Marketing can be done by hosting events, creating signage, online listings, and more. The faster a property is occupied, the more revenue it can generate for investors.
Property management services offer all the perks of an experienced property manager without the hassle of finding one. Learn more about property management services today.
Signs of a Quality Commercial Property Manager
Choosing a property manager is an important matter. Picking an under-qualified individual to run your commercial property can cause a reduction in profits and public reception. Likewise, knowing what to look for can help you appoint the optimal candidate to manage your property. Here are some management qualities to keep in mind:
Trusted real estate managers have an ample amount of industry experience that shows they are capable of maintaining commercial properties. Managers with experience should be able to inform you about their level of experience, the management duties they performed daily, what property types they’ve managed, and how they positively impacted the bottom line of previous properties they managed.
Certifications and Licenses
The best way to tell if a property manager is qualified to run your property is by their certifications and licenses. Certificates may include being an Accredited Management Organization, having a bachelor’s degree in a related field, being part of a trade association like the National Association of Community Managers, or having a requisite real estate license to show their industry knowledge.
Before hiring a real estate manager to oversee your commercial property, you should inquire about references or reviews regarding their prior experiences. A confident and reliable prospect should have no problem providing references, along with contact information, so that you may reach out to connections if needed.
Finding a commercial property manager that aligns with your business goals is no simple task, but by checking for these signs of quality assurance, you’re guaranteed to discover a qualified candidate that increases your property’s bottom line.
Let Hokanson Companies Property Management Services Handle Your Assets
Busy property owners likely don’t have the time to run a commercial space alone, nor the resources to sift through potential candidates, only to be let down. However, hiring a service specializing in commercial building management can provide the perfect solution.
That’s where Hokanson Companies can help.
With over eight decades of industry experience in commercial property management, construction, development, brokerage services, and project management services, Hokanson Companies has the skills and knowledge to help your real estate assets thrive. Our team has improved the real estate portfolios of organizations across numerous industries by increasing profitability and maintaining properties, and we intend to do the same for you.
If partnering with a trusted commercial property management company sounds appealing, consider partnering with Hokanson. Contact us today to get top-of-the-line property management services.