Investing in real estate can be a lucrative venture, but it also demands patience and perseverance since handling properties involves arduous tasks spread out in several sectors. Commercial landlords have it tougher from staying up-to-date with local, state, and federal laws to juggling other day-to-day operations, that’s why it’s worth having property management assistance to lighten your load.
Hiring a dedicated property manager to ease the burden of owning commercial real estate may seem like a luxury, but their key role in maintaining and increasing the value of your properties makes them indispensable if you want to maximise your profits. With that in mind, here’s how hiring a commercial property manager can change your experience:
Stay on Top of Rental Knowledge
Real estate properties often have a volatile nature, so their value often fluctuates depending on the market demands. The shifting prices may make it harder to pin down the best costing for your property, but a property manager can brush up on the current rental rates to ensure your prices properly reflect the area.
Prompt Rent Collection
Collecting monthly rent from commercial tenants can be complicated for many landlords, especially when dealing with late payments and stubborn occupiers. But a property manager can keep your cash flow churning by setting a streamlined system in place so your rent collection can be as hassle-free as possible.
Up-to-Date Legislation and compliance
One of the most complex tasks of handling a commercial property is keeping track of all the local, state, and federal laws to ensure your commercial property is compliant and up to code. Defying building regulations involves costly consequences, but property management can do the whole nine yards in ensuring your property meets your state’s standards.
Proactive and Timely Maintenance Checks
Commercial properties need perfectly functioning and updated amenities, features, and other upgrades to remain attractive and competitive for your tenants. Issues from plumbing leaks to something as simple as replacing HVAC filters should be done promptly, so having a property manager helps you stay vigilant on all areas that need improvement.
Handle Commercial Leasing Agreements
When preparing lease agreements, there’s plenty of complex information to consider — from the guarantees of all parties involved, terms, rent payments, expenses, and business protection clauses. These are all critical factors that can protect your relationship as the landlord with your commercial tenants, so having a property manager should ease the burden of preparing your new lease agreement documentation and make sure everything is in order. Additionally, the property manager can also review the existing lease to ensure the terms meet your interests and are in compliance with your state’s laws.
Provide Bank Guarantee
In case tenants default on payments or inflict damage to your commercial property in any way, having a bank guarantee or cash security protects you from these contract breaches without the onerous process of court.
One of the critical roles of a property manager is to always ensure the tenant’s required security is safely in place for the benefit of the landlord. Any slight imperfection in the bank guarantee can lead to disastrous consequences. In that regard, the property manager can take over engagement with the bank and the tenant since it can be a lengthy process for tenants that involves filling out the reasons why they are requesting a guarantee and providing collateral.
Lastly, the property manager can stay on top of your tenant’s maintenance obligations to ensure they “return” the property to you in the condition required by the lease. This is called “making good,” which an experienced property manager can handle by overseeing the tenant’s contractors, negotiating a cash settlement or arranging their preferred contractor to perform the work.
The Bottom Line: The Right Property Manager Can Save You Time and Money
A commercial landlord has to wear many hats to keep properties in good working condition, but it can be hard to make the most of your returns if you can’t scale your investments with all the amount of acting as bottlenecks to your progress. But with the right commercial property manager to assist you, there’s more room to focus on the core functions of your business.
Are You Looking for a Real Estate Asset Management Company?
Being a landowner is not an easy feat, but commercial property is a completely different ballpark. You need a reliable, timely, and trustworthy real estate asset management company in Sydney who can help keep you on top of your responsibilities, rent collection, and ensure your real estate properties are compliant.
But beyond property management services, we also offer assistance for your assets so you can generate the best possible returns for your portfolio. Get in touch with us today for your one-stop-shop property needs!