Many commercial property owners have experience in real estate and are confident in managing their own investment properties. However, managing properties on your own certainly has its challenges.
Here are five reasons why you might consider engaging a commercial property manager.
Serious investors are committed to creating as much wealth as possible with their assets, and dealing with the day-to-day functions of a property can slow down that wealth creation.
If you don’t want to deal with a flood of tenant calls/emails/text messages, scheduling and providing access to multiple contractors, checking the accuracy of invoices, completing rent reviews, etc, you will need a professional.
When generating an income stream is your most important reason for investing in real estate, it’s advisable to hire a professional who can maximise the cash flow your property produces, and handle the many and varied ins and outs of management.
If you’re overseeing a portfolio of rental properties, you’ll need to have those assets managed professionally. Taking care of several properties will ultimately lead to dealing with multiple tenants, and a growing list of issues that will need your attention.
Hiring an agency with a workforce of experienced managers, leasing agents, administrators, and operations staff will ensue all day-to-day and ad-hoc tasks are handled, so you can focus on your more important priorities. This way, you’ll have the time and resources needed to relax and/or focus on your other goals.
Lack of proximity to the investment property is another reason to hire a professional. If you live out of state, out of the country, or travel often it’s going to be difficult to monitor maintenance and any other issues that may arise. You’ll have tenants and contractors who need your attention, and if you’re more than an hour away, you’ll have difficulty being responsive. It’s critical to have someone local who can quickly visit the premises, investigate the issue, and resolve the problem. Hiring a local property manager ensures that your property is inspected regularly and maintained in good condition.
Many of our owners simply don’t have enough time to properly manage their rental investments. There are dozens of responsibilities when managing properties, from maintenance checks to tenant screening, from lease creation and enforcement to rent collection, and many many more. If you don’t have adequate time to devote to these activities, important things may get missed.
For some owners, spending time on their career, retirement, or quality time with their family is a reason to consider handing over the leasing, maintenance, and management of their rental property to a professional.
Varied and conflicting requirements have created a complex web that requires a professional who is constantly kept up-to-date with the changing landscape to consistently maintain compliance. Many landlords are unaware of local laws and find themselves struggling to understand what is required to increase rents, change lease terms, end a tenancy, and function under the Retail Shop Leases Act.
Hiring a professional property management company will ensure absolute compliance and protect you against penalties, potential claims, lawsuits, and liabilities.
If you’re considering engaging a commercial property manager to maximise the performance of your investment, reach out to the award-winning Property Management team at Ray White Commercial Bayside who will be happy to customise a management program specifically tailored for you and your property.