Managing real estate is complex and can be very specialized. There are different types of property and each should have a specific type of management. For the local shopping center and other commercial establishments, commercial property managers should be experienced in net leases, percentage rents and other areas that would not pertain to, say, an apartment complex.
The expertise of the managers should match the type of investment. Is it an office, an industrial building or a strip center? What types of problems does the building currently have? Is it vacancy problems, marketing or problems with maintenance? Ask the managers you interview the types of property they have experience in, how long they have managed other properties and the results of their management. Ask to see samples of their financial management in the past. Find out what types of marketing they specialize in. Is it print, new media, newsletters, advertisements, videos or other types?
The commercial property managers who deal with retail management will be experienced in different types of establishments. When interviewing for management companies, the investor should ask what types of centers they are currently managing and if they have satisfied clients. Do they manage a strip mall, a neighborhood or community center or regional shopping centers? Shopping center management requires specific skills in accounting and the programs that handle common area maintenance, leasing tenants and billing.
The office building will require different skills from the retail establishment. Commercial property managers need talent in administration, leasing and engineering. The manager will need to know if an office building meets ADA requirements for restrooms and elevators and what those requirements are.
There are other types of property that will require different types of skills. Industrial, mobile home parks, self storage facilities, motels and other types of properties require knowledge in each specific market and the laws that apply to it. The company hired should have experience in leases of different types, tenant notices and disclosures.
Look for a manager and its company that is accredited. This accreditation sets them apart as having met higher standards that other firms in the same community have not met. They should be experienced and flexible, having knowledge about accounting, architecture, law, marketing, maintenance, leasing, sales and appraisal. A good manager who deals with clients, tenants and the investor in a straightforward way is necessary.
Commercial property managers should have a positive reputation among the business community. They should be viewed as professional and honest. They should provide services depending on the client needs. They should provide financial services such as record keeping and reporting as well as developing and monitoring budgets. The manager and its company will provide maintenance programs and implement marketing strategies. They will be responsible for rent collection and evictions and negotiating leases.
The manager will be attentive to their tenants and respond to their needs and concerns quickly. They are responsible for purchasing equipment, supplies and contracting with outside services as needed. They will also manage insurance needs and comply with any laws and regulations. And enforce all ordinances relating to fire, health and safety codes.
Commercial property managers play an important role in any investors business. Considering all the factors such as the type of property, the size of the property, location, and how difficult the property is to manage, an investor needs to research and negotiate with several managers before signing any contract. The right manager provides expertise, professionalism, solid financial future and honesty.