Don’t Be Fooled…
From handling the day-to-day operations to tenant sourcing and screening, the fact is that a good commercial property manager, for many busy owners, is a true lifesaver. However, believe it or not, some owners are apprehensive about hiring one. The worst part is that their decision is based not on fact or experience, but on things they hear through the grapevine, which is conjecture and nothing more.
To that end, let’s take a look at some of the most common misconceptions surrounding commercial property management, and separate fact from fiction.
Myth 1: Commercial Property Managers Are Too Expensive
Fact: Perhaps the most common myth about a property manager is that their services are too expensive. However, this is far from the truth. While a property manager does cost money, it is far from being pricey when you look at the big picture.
In fact, far from being costly, through proactive marketing, knowledge of the local real estate market, and a team dedicated to the upkeep of your commercial property, a property manager might even increase your net income. Yes, you heard that right. In fact, the return on investment is typically much higher when owners work with a property manager. Additionally, since most property managers have an extensive network that they can advertise vacancies to, they will often be able to help shorten your vacancy cycles as well.
Will a property management company charge you a fee? Yes. Will that fee be worth your money for the services provided? Absolutely.
Myth 2: A Commercial Property Manager Will Complicate Things
Fact: A professional property manager won’t complicate things; in fact, they will make your life easier by streamlining operations. Additionally, when dealing with a property manager, you only deal with one company – a one-stop shop – versus dealing with numerous subcontractors, an accountant, tax experts, etc. This makes things much easier for you, as the owner, and makes owning a commercial property seamless and enjoyable.
Myth 3: Commercial Property Management Means Lost Control Over My Investment
Fact: As an owner, you do not have to go on this venture alone. The idea that a property manager will take full control over your investment is a common myth that simply isn’t true.
When you hire a property manager, you are not signing away your rights as an owner. Bringing a property manager on board is just outsourcing some of the more complex work of property management to another party. By hiring a professional and experienced property manager to handle your business for you, as an owner, you are actually gaining more control, simply by working with an expert in the field.
Myth 4: Commercial Property Managers Are Not Necessary
Fact: Can you market your commercial property and thoroughly screen tenants? Do you have an intimate understanding of the local real estate market? Extensive knowledge of landlord- tenant laws? What about pricing your property to discourage vacancies, while simultaneously achieving the highest possible ROI?
Unless you answered an unwavering “yes” to each of these questions, you should take our advice and hire a property manager. From helping you find quality tenants, to compliance with relevant laws and regulation, a property manager will take care of all the legwork. Not only this, their experience and expertise will result in the value of your property increasing over time. Moreover, by finding you quality tenants, they will deliver a higher net income. In other words, their service will pay for itself in the long run.
Myth 5: All Commercial Property Management Companies Are the Same
Fact: No matter what you hear or how you view property management, not all property management companies are the same. Some companies are nationwide, while others concentrate their services by region. They can also vary in qualification, experience and costs – and some will offer a wider array of services than others.
The key is to choose a management company based on their team’s experience and your investment needs. Remember, your experience will differ with every company, so it’s important to do your research to find out what company is the best fit.
Conclusion
When you invest in commercial real estate, there’s a lot of stress, time and money, that goes into running a successful commercial property, and doing it alone makes things even more difficult. Luckily, there are commercial property managers and their dedicated teams that can help carry some of the load. If you’ve heard some misconceptions that make property management sound unappealing, don’t dismiss the process so quickly.
A professional and experienced team is an asset to any owner who does not have the time or experience to manage their commercial property themselves. In fact, hiring on a property manager might be the smartest choice you ever make for your investment – after all, one of the best ways to increase the value of commercial real estate is through exceptional property management.
