Property investors build real estate portfolios that can range from a couple buildings to many properties across multiple cities. Portfolios can include commercial multi or single tenant office, industrial, retail, and hospitality type properties; and/or, residential multi-tenant properties ranging anywhere from a single duplex up to hundred+ unit apartment buildings. Regardless of whether the investment property is commercial or residential, it is intended to be owned and operated for the specific purpose of generating net income and building long-term equity. Management of these investments is critical to their longevity and profitability.
Property management can include analyzation of investment potential prior to the purchase of a property and then subsequently, managing the day-to-day responsibilities of tenant leasing. Some property managers specialize in commercial properties, while others concentrate their services on residential properties. “Commercial vs. Residential” property management requires different skill sets and it is always best to investigate qualifications before hiring.
Your property manager can:
- Conduct day-to-day responsibilities such as coordinating maintenance requests, fielding questions from tenants, overseeing common area usage to keep tenant relations positive, and much more. All of these are time consuming!
- Aid in accounting and rent collection
- Maintain and improve property condition and appeal that may result in a stable or increased future property value
- Add value to the capital investment by advising tenant rent rates, preparing for lease renewals and supporting maximum occupancy
Professional property managers will usually charge a management fee that represents a percentage of monthly gross income generated by the specific property. There may be a minimum or maximum fee amount depending on the property location, condition, occupancy and current market/economic conditions. A property manager should be able to prove their ability to successfully manage your property by offering positive customer referrals and discuss in detail their qualifications, experience and back-office support (if applicable) that will be important to their success. Building a positive relationship with your property manager will go a long way in making sure that you, as the owner/investor, have clearly communicated goals that both parties can work toward with realistic expectations of each individuals’ role. Collaborating with a property manager can be an ideal way to support your real estate portfolio.