Owning and renting out real estate has the potential to become a major income source for investors of all backgrounds. Real estate has always been seen as a prominent source of income for the average middle-class property investor, and that doesn’t change when we shift our attention to commercial properties.
According to a report published by the National Association of Realtors, current market trends for 2020 and beyond showcase room for growth as the economy and commercial real estate market recover from the COVID-19 pandemic.
For professionals looking to enter into the commercial property marketplace, put some consideration into hiring a property manager to maintain your investment. Commercial property managers offer investors the ability to go hands-off with their project, leading to all manner of benefits.
What Is a Commercial Property Manager?
Owning and investing in real estate can be simple with the assistance of a commercial property manager. A property manager is someone who handles all manner of responsibilities surrounding a property. These experienced professionals will ensure that your tenants are taken care of, rent payments are collected, and problems are solved for tenants in short order. The Swiss Army Knife of real estate management, a commercial manager ensures that financials are handled and tenants are happy.
To pursue a career in property management, individuals should consider pursuing education related to business administration, accounting, and real estate. No certification is required to achieve success in this field.
What other ways can a property manager help you?
In-Depth Financial Services
The business relationship between the landlord and property management team is incredibly important. More than just the captain of the ship, your property management team will be relied upon to handle all aspects of your financial goals. Financial tasks routinely take shelter under one of three categories: Accounting, Rent, and Budgeting.
Key insights from a property manager can help landlords to develop better business strategies going forward. Property managers will showcase the financial health of a building as well as its overall performance, highlighting areas of concern and areas where improvements can be made.
Some property managers opt to release monthly statements that look over the performance of a property, ensuring that updated information is always at hand. This information can take the forms of variance analysis, rent roll reconciliation, and any general ledger work.
- Variance Analysis — Diving into the monthly and yearly financials of a business and comparing it to a property’s budget will allow us to define the property’s variance. Properties performing to expectation will showcase little variance while under-and-over achieving buildings will showcase larger variance.
- General Ledger — This is the overview of all financial transactions related to a specific property over a defined period of time. Each transaction requires a description and justification for the landlord to verify at a later time.
- Rent Roll Reconciliation — Rental terms for each tenant are listed in a rent roll, including lease date, rent, potential escalations, and so on. Meticulous recordkeeping is vital to ensure that rent roll reconciliation is accurate and updated.
There are many other financial services that a commercial property manager might undertake, though these may vary from one professional to the next and change as needed.
Maintaining Tenant Relations
More than just a bookkeeper with a pen, a professional property management group will make sure that your tenant relations are constantly maintained and properly taken care of. One of the easiest ways to lose steady business with a commercial property is by lacking the proper care that each tenant requires.
There will be a number of ways that a property manager can help to ease the burden that your tenants might experience. Let’s highlight a few scenarios below.
- Maintenance Representative — When something goes wrong inside your building, a property manager can act as the conduit to a solution. Your property manager at Strategic Properties Group will become the face for all maintenance requests.
- Screen Out Bad Tenants — An experienced property manager will have the skills and contextual expertise to property filter out problematic tenants. Tenant screening as a process can be majorly beneficial to every property investor.
- Point of Contact — Property investors who turn to property managers are doing so because they want separation from their work. A property manager can act as a key point of contact between you and your clients, allowing a filter to remain in place so that you don’t have to live with stress!
Hiring a commercial property manager will ensure that tenant relations are highlighted, underscored, and always focused upon. In fact, research shows that property managers can help to solve the problem of constant tenant turnover. If you are struggling to keep your buildings occupied, consider the impact that a professional team like Strategic Properties Group can have!
About Strategic Properties Group
Strategic Properties Group is a family-owned business based out of Tampa. Locally owned and dedicated to exceptional customer service, Strategic Properties Group provides a wide range of real estate services, offering the experience of a larger firm with a more personal touch.
To learn more about a potential partnership with Strategic Properties, contact their team at your convenience!