Should you hire a property management company?
There are lots of reasons to hire a commercial property manager. Here are the top seven.
If you have ever owned a commercial property—whether it’s an office building, an apartment block or a strip mall—you’ve probably pondered the question: Should I spend the money to have a property-management company to take care of it?
Keeping a commercial property in top shape takes a lot of work—that’s not telling you anything you don’t already know, I’m sure. But should you or one of your employees manage leasing, look after the finances, fix things when they break, ensure you are complying with all municipal, provincial, and federal regulations, keep it clean, ensure tenant satisfaction and change the light bulbs?
Property management is all of that—and more.
Here are the top seven reasons you might want to consider hiring a property management company.
- Improve your reputation as a landlord — When people drive by your property, do they think, “Boy, this property has real potential. If they’d only cut the grass or repave the parking lot or…” When the grass isn’t cut regularly or bulbs are burnt out, potential tenants may see those as indicators of how you do business. On the other hand, a well-kept property with everything in working order sends a completely different message: this owner cares.
- Protect your investment — A good property management company is process-driven. Good planning ensures the property is well-kept and the money is spent wisely. They are thinking now about the roof you will need in five years. There should be few surprises once the company settles in.
- Improved customer service (for you and your tenants) — Let’s face it, you are not in the property management business. You are in the keep-the-tenants-happy-so-they’ll-renew-their-lease business. Maybe you are too busy to take that call right now. Maybe sending out a request for proposals for lawn maintenance services is more work than you can handle today – something you may have been saying every day for the past two weeks. When you use the services of a professional property manager, his main—some would argue only—job is keeping those tenants happy. And that will make you happy.
- Save time and money — A good property-management company will not only work in the most efficient manner, but they will audit your processes and actively seek out ways to improve. Whether it’s a better landscape management plan, reviewing operating contracts, suggesting an improved process for managing energy or arranging bulk purchases, they can put money back in your pocket.
- You can maintain your property in-line with your investment strategy.
Whether you are in it for the long haul or you want to capitalize quickly on the undervalued jewel you just purchased, how you operate your building is critical to your success. Spending money on tulips, for example, while ignoring a hidden defect in your mechanical system may come back to haunt you with the short-term investment strategy. A professional property management firm can help you navigate through the strategies that will best meet your investment needs.
- Make better, more informed financial decisions — One thing you should demand of your property manager is accurate and detailed financial reporting. Knowing the true picture allows you to make well-informed decisions for both you and your tenants, ones that will continue to improve and enhance your property and your tenants’ experiences over time.
And the #1 reasons to hire a property-management company is…
- Make more money — If your investment isn’t making you money, it’s not doing its job. Property management companies add value—to your property and to your bank account. A well-managed property will grow in value. No matter why you got into the business, at the end of the day it must give you the payback you expected. And not just when you sell. It should also deliver over time.
If you would like to know more about hiring a property management company or offer an opinion on the topic, drop us a line or leave a comment below.