The underlying factor behind every successful commercial property is strong property management. Hiring a commercial property management firm is something you should truly consider. There are many commercial property management services out there, and choosing the right one can be a taxing job. You property manager must have the capability to help you achieve your personal investment objectives. A professional and competent manager will keep your tenants satisfied and safeguard your investment. The following criteria should help you find a good commercial property management company.
What really matters?
For a perfect fit, the company’s expertise should match your personal investment needs. Which kind of commercial properties or investors does the property management company mostly deal with? Does it mostly deal with institutional investors or does it specialize in working with individual investors? The property management company you are considering must have expertise in serving your type of property. This is because the reporting requirements of each type of commercial property are different. If they manage properties that are similar to yours, how long have they done it and what have been the results?
One of the surest ways to determine if a property management company will benefit you is by checking their reputation. What is the firm’s standing in the business community? Do they have a positive image in the industry? Ask around, call references and read testimonials and reviews. This will tell you if the firm will truly provide the professional commercial property management services they profess. The number of years the company has been in existence can also be a good indicator of their reputation. It is possible that a company with years of experience has been sustained in the industry because of their good reputation. But don’t rely on this alone, make sure you ask other people about the firm’s reputation.
Look for accreditation
Accreditation is another factor that sets apart true commercial property management services from the wannabes. It shows that they have met higher standards. You may look out for designations such as Real Property Administration (RPA), Certified Property Manager (CPM) and Certified Shopping Center Manager (CSM). The property management firm’s leadership and staff must also meet all the education requirements in operational and fiscal management.
Insurance is important when it comes to property management. Choose a property management company with insurance. Also ensure that the management team is familiar with risk management and loss prevention programs. Besides that, the company should possess a fidelity bond to protect against loss of property or money through the dishonest or fraudulent acts of their employees. Depository’s forgery-and-alterations insurance is also important as it will protect you against loss caused by alteration or forgery of promissory notes, drafts and checks.
Range of services
Your property management company will provide a full range of services or just limited number of services depending on your needs. Do not assume that a firm automatically provides a certain service. Ask for a list of all the services they provide and select the ones that suit you. Commercial property management companies generally provide the following services:
- Management planning
- Financial reporting
- Maintenance programs
- Tenant relations
- Rent collection
- Lease negotiation
- Purchasing procedures
- Market analysis
- Documented procedures