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The full stock of housing in the US is worth $43.4 trillion. $16 trillion of that is commercial property.
Managing a commercial property is a wise investment because of its high demand. It's also a massive undertaking that requires professional help.
Read on to learn how to choose commercial property management services to help.
Consider Your Needs
Are you wondering, what are property management services? They differ for each property but may include:
- Marketing
- Budgeting
- Financial reporting
- Setting maintenance schedules
- Rent analysis and collection
- Lease negotiation
- Tenant relations
- Emergency response
- Leading updates
- Legal compliance
Look for commercial management companies that offer the ones you need. See if their staff is sufficient. It should include managers, administrators, engineers, maintenance personnel, and any other professionals you may need.
Check Their Credentials and Insurance
Property management services for commercial properties must at minimum, have a real estate broker or management license. Further credentials may indicate specialization in a specific area.
Insurance is another essential area. They should carry policies that cover:
- Depositor's forgery-and-alterations
- Professional liability
- Property-casualty
- Errors and omissions or E&O
They may mandate that you have insurance as well, but that's a win-win for both of you. They protect against potential damage and liability.
Research Their Experience and Reputation
Choose a local company. They'll have a strong relationship with nearby vendors and understand the laws in your area.
Determine their local presence and reputation. Are they spoken of well by your neighbors, vendors, tenants, and building owners? How are their reviews?
Gauge their experience by checking how many years they've been in business. Look for a stable company with low staff turnover and consistent service.
Remember that their reputation and experience or lack thereof reflects on you. Finding a trusted one is a form of networking that can increase your revenue and help you work with other professionals.
Find Out About Their Fees
Commercial property management services charge 4-7% of the rent. This differs depending on factors such as the property itself and how many services they provide.
There are also several fee structures they may use. They can take a percentage of part or all of the gross income. They can also use a flat fee structure.
Make sure the cost fits into your budget. Consider if paying them will save you time and increase your property's income. Get a detailed list of everything they're charging you so that you don't get hit with hidden fees.
Meet Them In Person
Interview several commercial management companies. Meet them face to face to ask any questions you have about factors such as their services credibility, experience, or fees.
These interviews are also an opportunity to get a sense of how you'll communicate with each other. Look for ones that are clear in their explanations and ready to talk to you whenever you need them.
Work out a comprehensive written agreement before you hire them. It should outline everything you can expect from them, including what services they provide and at what cost.
Where to Get Commercial Property Management Services
Commercial property management services help make offices and other business spaces profitable.
Find an experienced, local, accredited provider that meets your needs. See if they fit your budget and meet them in person.
Reach out to Chester County Property Management for commercial property management services today.
