Commercial property management is a business service designed to assist owners in the supervision of commercial properties. Essentially, the property manager takes care of details related to the upkeep of the buildings on the property, qualifies potential tenants, oversees leasing of sections of the property, and collects rentals on behalf of the owner. The process of managing commercial properties may involve overseeing any type of property from retail space to multi-storied office buildings.
Many property owners choose to engage a commercial property management firm as a means of making sure all the day-to-day details of operating a commercial property are handled competently. The management firm is usually granted authority to make decisions that impact the amount of income the owner derives from the property. In many cases, the right management can result in a lower turnover of tenants as well as securing the best possible rental rates for the space.
The process of commercial property management involves screening potential tenants. The management firm accepts applications, conducts background checks, and prepares the leases that are offered to applicants who are approved. For the duration of the lease, property management firms will make sure that the tenant is provided with all the benefits and responsibilities outlined in the lease agreement.
A commercial property manager serves as the liaison between the owner and any tenants residing on the property. Typically, tenants approach the manager when repairs are needed or there is some complaint or concern about the property in general. The rental property manager will then take steps to resolve the matter, hopefully to the satisfaction of the tenants and the owner.
Another aspect of effective commercial property management involves the eviction of tenants who fail to comply with the terms and conditions of the lease agreement. Since most jurisdictions have specific regulations that must be followed in order to conduct an eviction, the property manager will ensure that each step in the process is followed to the letter. Doing so makes it possible for the property to be vacated and made ready for a new tenant as quickly as possible, thus restoring the revenue stream for the owner.
Many commercial property management firms promote their services by pointing out their ability to make sure potential tenants are screened properly, that the owner receives a steady income from the property, and that tenants are happy and more likely to remain in place for many years. Some firms structure their fees as a flat rate per month, while others base the monthly fee on a percentage of the revenue generated due to the firm’s efforts. When engaging the services of this type of a property management firm, it is important for property owners to understand the scope of the responsibilities that the management firm will take on, and that the benefits are worth the fees charged.