Commercial real estate transactions in 2022 totaled over $1.14 trillion.
You can make a lot of profit from commercial real estate, but you need to manage it effectively to do so. This isn't easy, and if you're just getting started as a real estate investor, you might not even know where to begin.
Commercial property managers can help by taking on various responsibilities. This will make things significantly easier for you, and you can rest assured that your property is in good hands.
Keep reading to discover some of the key responsibilities of commercial property management companies.
Property Marketing
After investing in any commercial buildings, you'll need to find tenants. Whenever your building is vacant you'll be losing money. Getting tenants locked in will allow you to start creating cash flow.
Property management companies know how to effectively market properties and make them appealing to potential tenants. They'll create marketing material, post online listings, and even design physical signage if needed to help you secure tenants.
Tenant Screening
Finding tenants is one thing, but making sure they're suitable is another. You want quality tenants to ensure they take care of your property and always pay rent on time without causing any issues.
When you have applicants, a property management company will go through a thorough screening process. This will ensure you end up with tenants that are an ideal fit.
Tenant Retention
As a commercial landlord, you have certain responsibilities to your tenants. This will involve general maintenance, ensuring problems are dealt with, and more.
A property manager can help with this. The result is that your tenants will be happy and will want to stay in your property for longer. This means lower tenant turnover so you won't have to worry so much about periods of vacancy.
Rent Setting
The purpose of owning commercial properties is to make money. How much you charge for rent is a key factor here. A property manager will work to ensure you're charging the optimum amount.
If you charge too much, you'll struggle to find tenants. Too little and you'll be losing out on potential profits. Your profit manager will assess the quality of the property, its location, the property market, and more to determine how much you should be charging.
Rent Collection
You need to make sure all of your tenants are paying rent on time, and if you own multiple properties, that can be difficult. A property manager will stay on top of this, ensuring all tenants are paying what they should be. This will keep your cash flow positive and prevent issues or disagreements with your tenants.
Lease Negotiation
When it comes to new tenants or renewing leases, things can get complicated. Property managers have plenty of experience with this, so they can take on the responsibility. They'll negotiate leases with your tenants with your best interests in mind.
Working With Commercial Property Managers
There are several other responsibilities that commercial property managers can take on. All of these will make life easier for you and you can relax while making a solid income from your commercial properties.
Property Management International Greater Philadelphia can help landlords manage any commercial properties with ease. Take a look at our Commercial Property Management page today to find out more.
