A commercial property is a real estate building or land that is used for business activities. Larger residential rental properties can also be considered commercial property. In most cases, commercial property owners hire in-house staff or a commercial property management company to manage their properties. Commercial property management companies handle the day to day operations of one or more commercial properties including maintenance, renting out office spaces, financial transactions, and leasing agreements. Commercial property managers often manage more than one property on behalf of a business that owns multiple commercial properties.
What tasks does a commercial property manager handle?
One of the aspects that a commercial property manager handles is finding appropriate tenants and signing leases. Leases are legally binding agreements and it is important that they are drawn up in accordance with local, state and Federal laws. They should include all of the important details that outline the roles and responsibilities of the leaser and lessee and the actions that each party can take if the terms of the agreement are breached.
A professional property manager or management company will be well-versed with relevant laws related to commercial property. They will therefore know the correct and expected format of a lease and the legal actions to take if a tenant fails to pay on time, causes willful or accidental damage or fails to adhere to the terms of the lease in other ways. The property manager would also know the right steps to take if they or their company is accused of breach of contract.
Property that is in use is always getting worn in one way or another. This is particularly true for commercial property that has staff and customer traffic. A commercial property manager will ensure that necessary repairs are done as the need arises. They will also ensure that periodic maintenance is done so that a store or other kind of commercial property looks attractive to customers who are walking in or passing by. This also saves on potentially costly repairs that may accrue when minor issues are ignored and turn into big problems.
A property manager handles property finances. The commercial property manager or management company will collect and deposit rent and monthly maintenance fees, handle tax filing, and pay any utility bills for the building that individual businesses are not responsible for. Common utilities in this category are electric and water bills for common areas like washrooms, corridors and parking bays. The property manager also keeps records of all financial transactions in order to provide the commercial property owner with regular financial reports. Today, many commercial property managers use software that makes it possible for property owners to access real-time financial records and reports.
Hiring a property manager or management company
If you’re a commercial property owner you may be wondering how to choose the right property management company for your needs. Asking other local commercial property owners who they would recommend is one way to gather a list of options. Another option is to look through the local realtor associations for a list of potential property managers and management companies. It is advisable to take the time to talk to at least two or three before making a final choice. With the decision handled, a commercial property manager frees up time to handle other projects, enjoy more free time and/or make plans to sell or acquire other property for additional income.
Son-Rise Property Management has been serving the property management needs of Bellingham and Whatcom County since 1996. Contact us today to see how we can help you find a rental property for your family or manage your rental properties.