Commercial property values dropped by 15% between June 2022 and June 2023.
Managing a commercial property is no small task. It's often best to hire someone who has plenty of experience. Working with a commercial property management company may be the best solution.
But what do commercial property managers actually do? Keep reading to find out.
Developing Maintenance Plans
Commercial management companies are responsible for preserving and increasing the value of properties. The value of a property depends on how well it's maintained. As such, property managers will establish and oversee maintenance plans.
Things like facility inspections and waste management help these plans stay efficient. For smaller properties, a property manager may be able to do this alone. If necessary, they can work with other managers to achieve their goals.
Organizing Refurbishment, Upgrades, and Maintenance
Even when well maintained, there are certain fixtures that will degrade with time. This often includes things like electrical systems, HVAC systems, and plumbing.
Property managers should plan maintenance and repairs as needed. They'll also organize replacements when these systems fail. This involves working with contractors and other professionals.
Collection of Rent and Other Payments
A property manager collects rent, levies, and dues from any occupants. They'll issue receipts to tenants for all payments.
There may be times when tenants fail to pay certain fees. If this happens, a property manager will then need to take appropriate action.
They'll also maintain detailed records of all transactions relating to the property. You may need to refer back to these for various reasons.
Financial Reporting and Budgeting
A property manager will also deal with other financial aspects. This often includes things like capital expenditures, expenses, and more.
They'll produce reports with clear details of all financial transactions. They'll also set and maintain budgets. They can analyze the yearly costs of the property alongside budgets to make sure they align.
Overseeing Tenant Relations
Property managers work to maintain good relationships with all tenants. This involves knowing all of the terms of lease agreements. If any tenants break these terms, they'll need to take action.
Tenants can also go to property managers with various issues that they have. This often involves helping them organize maintenance and repairs. They'll also respond to any emergencies that tenants have, such as plumbing issues or power outages.
Staff Appointment
Some properties need full-time employees for certain tasks such as management and caretaking. Property managers may be responsible for recruiting staff for these positions. Depending on the property, this could also include assistant property managers.
Working With Commercial Property Managers
Commercial property managers can be incredibly helpful for property owners. They can handle a range of tasks that can be difficult for those that don't have experience.
PMI Ancient City is a full-service real estate asset management company. We offer a range of services and have over 20 years of experience. Take a look at our commercial property management page to find out more.
