In the world of commercial real estate where every net dollar earned can add anywhere from 10 to 16 times to the value of an investment property, good property management makes a big difference in how an investment property performs for the investors.
A good property management company needs to have a thorough understanding of how investment properties work.
A good property manager must first understand how investment real estate is valued and how to increase that value through increasing cash flow and tenant quality.
Good property managers understand how to market a particular property to attract the most appropriate tenants that will do well where the property is located and be able to pay the highest rent to the owners.
A successful manager also understands commercial leases and how to negotiate the best terms for the property owners. Once quality tenants are in place, a quality manager must be good at tenant relations and know how to keep tenants happy to avoid costly mistakes that can lead to possible vacancies and even litigation.
And finally, a good property manager must be able to report the property’s performance in an accurate and understandable fashion so the owners can make informed decisions.
As a property owner, it’s well worth the extra effort to find the best and most creative property manager available to manage your investment property. The cost of property management can normally be passed through to the commercial tenants in most leases, so getting the best service provider will not only be smart business for the owner, but also good for the property’s tenants.
When hiring a property manager, a building owner should look for someone experienced at managing commercial- property, and has a well-thought-out strategy to increase net cash flow and value of the property.
The property manager is like the quarterback of a football team – making critical decisions and implementing vital strategies.