If you acquire a commercial property which requires a certain level of management, what should you expect or look for? It will very much depend on what you specifically require and in most cases, you should be able to find providers who can tailor services to meet your needs.
Typical services would include the following:
- Asset Management – on going communication with the owner, preparation of proformas/budgets, tenant relations coordinator
- Financial Management – collection of rents, manage receivables, accounts payable, operating cost billings, monthly statements, procure bids for insurance
- Physical Maintenance – property inspections, perform regular maintenance, repairs & improvements, 24/7 avail., supervise hired contractors, manage projects
- Leasing Placements – coordinate all new leasing activity (in conjunction with r/e brokerage), screening of prospective tenants/credit investigations, tenant set-up
Most professional management services will tailor a package based on the services you require – in short, a menu driven approach where you select what you need. A lot will depend on where the property is located (relative to where you reside), and what sort of time/resources you can devote to any of the above management categories.
Just a final comment on well managed properties. They usually are occupied by content (dare I say – happy) tenants, which generally makes for a more successful investment property. Keep this very much in mind, as you structure your management plan.
As always, seek out experienced commercial realtors within your market to assist and guide you on the best management solutions available.
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