In today’s economy, there are many finance years and investors who suddenly find themselves owning property. This is due to people using commercial property as debt collateral. However, if you are already busy and have a career to take care of, you do not have time to be a land lord or a commercial property manager. The best solution is to find a commercial property management business and let them take over. Some of the advantages are:
o No need to learn the business of commercial property management
o Reduced stress
o Having a profitable asset
o No interruption to your current workload or family life
o Getting the money that is owed to you from the previous debtor
Understanding Property Management Companies
When you own a commercial property and have a commercial property management business in charge, they will be the middleman between you and the tenant. Commercial property management companies advertise themselves based on their services. Besides accepting rent, they will advertise and show a vacant property, go over the fine details of the lease, keep the inside and outside clean, and take care of systems maintenance. They will also oversee all of the staff and contractors that are necessary for keeping your tenants happy.
What Qualifications Should A Company Have?
In general, most property owners select a company based on recommendations from friends. However, if you do not have this resource, you can look for a few basic things that will help you determine if this is a good company or not. In particular, you should ask to see some of the other properties that they’re in charge of. If the building looks like it should be condemned, than they probably aren’t doing their job. You should also ask to see if the manager has a business degree. If they don’t have a business degree, you should ask them if they have previous experience working in a commercial business management company.
Should The Manager Of A CPM Company Have A Realtors License?
It is helpful to check with a local realtors office before selecting a CPM company to do business with. The realtor’s office can tell you whether or not there is a state requirement to advertise property and accept rent. In general, this law is put in place to ensure that certain individuals who discriminate or have bad business practices are not doing this to future renters. Asking a third party is better than asking that property management company. After all, they could lie to you in order to get your money.
How Much Should You Be Charged?
Many commercial property management businesses will charge you between 5% and 35%. If you are having a hard time determining whether or not this is reasonable, you should check with the Better Business Bureau. The BBB will have any complaints that are filed against the company. This is a good indication that they are overcharging. You should also ask that company for a list of current and past clients. After all, if you don’t have anything to hide, then you will not hesitate to give evidence. Another good tip is to check with other CPM firms and see how much they will charge compared to their benefits.