{"id":4860,"date":"2021-07-15T13:56:19","date_gmt":"2021-07-15T20:56:19","guid":{"rendered":"https:\/\/www.officefinder.com\/officeblog\/?p=4860"},"modified":"2024-04-25T14:34:17","modified_gmt":"2024-04-25T21:34:17","slug":"tips-hiring-commercial-property-manager","status":"publish","type":"post","link":"https:\/\/www.officefinder.com\/officeblog\/tips-hiring-commercial-property-manager\/","title":{"rendered":"What to Know Before Hiring a Commercial Property Manager"},"content":{"rendered":"

If you\u2019re just getting into real estate investment or you purchased an office building to house your business, you\u2019re probably thinking about whether or not you should seek out a commercial property manager. We\u2019ll save you some time: yes, you should hire a property manager. Real estate investors large and small, and at every level of experience, will benefit from hiring a property manager. There are managers and management styles to suit every possible portfolio, from single properties to diverse, expansive real estate empires.<\/p>\n

Efficient \u201clone wolf\u201d managers, locally focused management firms, and large, resourceful management firms with projection power all have something unique to offer, and the type of manager you choose will depend on your specific needs and the nature of your portfolio. However, like in any marketplace, there\u2019s more underneath the surface; before you deal with a new property manager, you should make sure to vet them properly. Doing your due diligence upfront will spare you the headache of dealing with bad management. According to Utopia Management, the industry nationwide has some stellar management teams, but sadly it is also rife with inexperienced, ineffective property managers. It\u2019s a fairly easy career to start, which tends to attract people that may not have the level of commitment and business acumen that is required to maximize ROI and streamline operations. Pete Evering of Utopia shares with us these ways to sort out your options and trust your investment to a smart, effective property management firm.<\/p>\n

1. Zero In on Your Needs<\/h1>\n

Before you search for a potential manager, take stock of what exactly you require and expect from your management. For example, a single family home and a mixed portfolio of multifamily residential and commercial properties will have acutely different needs, most obviously concerning the number of staff necessary for general upkeep and the resources available to them. If you have properties in different, disconnected locales, a large-scale firm with a presence in different counties or states is ideal.<\/p>\n

In general, you\u2019ll want to work with only one manager or management firm that can service all of your properties. Small-time investors may want to save money by going with an efficient, solo manager, but depending on your situation, your needs may extend beyond the physical act of management and into the realms of marketing and advertising, meaning you\u2019ll want to choose someone able to properly advertise vacant rental units and fill them promptly. Many property managers also assume the duties of tenant interaction, including processing applications, background checks, and leases. For this reason, many proactive landlords opt for a fully staffed firm.<\/p>\n

2. Inquire About Experience<\/h1>\n

A manager can claim expertise in several subfields of property management, but talk is cheap. Before signing with a manager, get a good idea of their management experience. In any field, there\u2019s a debate between those who prize freshness and innovation over cooked-to-death tradition and those who trust old wisdom more than they trust untested possibility. In general, however, you should choose management that can display a long history of experience, having dealt with changes in the real estate market over decades and adjusted accordingly. Don\u2019t forget: if a management firm is old, that means they\u2019ve been doing something right.<\/p>\n

Of course, management experience itself isn\u2019t universal. A firm specializing in walkup apartments, with few if any commercial properties in their management history, is obviously not an ideal candidate to market and manage a small armada of retail spaces. Having no precisely relevant management experience shouldn\u2019t automatically disqualify a manager, but you should consider looking elsewhere until you find someone whose clients typically resemble yourself.<\/p>\n

3. Ask How They Reduce Vacancy Rates<\/h1>\n

This is a magic bullet question that will highlight immediately how savvy the agency or manager is.\u00a0 Listen for answers that discuss:<\/p>\n