There is a lot that goes into managing a successful commercial property, from dealing with financial responsibilities to maintaining the facilities. They are just two of the many reasons even the most experienced California investors enlist the help of property management companies.
Learn more about what property management entails and how it can help you make the most out of your California real estate investment.
What is property management?
Property management is the supervision of income-producing real estate, including residential, commercial, and industrial property.
Property owners either pay an individual manager or entity an annual fee or a percentage of the profits generated by the property while under their management services.
What are the responsibilities of a property manager?
The duties and responsibilities of a property manager or company depend on what type of services you would like them to take care of. Here are some of their most common responsibilities:
- Collecting rent. This is one of the most basic responsibilities of a property manager. Experienced property managers and firms have systems in place to collect and manage rent from tenants.They are also responsible for enforcing and collecting late fees.
- Setting and adjusting rent price. A property manager can set the rent level so it can appeal to potential tenants while maximizing profits. They will look into current market trends, location, and similar properties to figure out the best rent price. They can also increase or decrease the rent according to state or city laws.
- Tenant management. This means finding and screening tenants, as well as managing complaints. Property managers usually use different approaches to attract tenants such as advertising or suggesting property improvements. They will also help screen tenants by doing background checks to control turnover. Handling evictions and move-outs are the responsibility of the property manager, as well.
- Lease management. A property manager in charge of drafting lease agreements that protect the rights and interests of the owner and the tenant.
- Maintenance and repair. Facilities should be kept in a safe and habitable condition. This includes regular maintenance and emergency repairs when tenants request it. Property managers and firms will have protocols set up so they can attend to tenant issues efficiently.
- Managing other employees. If your property has its own concierge service or security team, a property manager can supervise them. This includes setting their salaries, hiring, or terminating employees.
- Looking after vacant properties. For those with vacant properties, property managers can do routine maintenance and inspection to prevent vandalism, trespassers, burglary, and everyday wear and tear.
- Budgeting and maintaining records. A property manager is responsible for keeping budget and financial records in order. They will keep track of insurance costs, rent collection, and maintenance requests. They can also help the property owner file the requisite taxes on the property.
Benefits of Hiring a Property Management Company
Property management has many benefits, which include the following:
- Property management companies are knowledgeable about landlord-tenant laws. A good property manager will make sure your business complies with laws regarding tenant screening, tenant eviction, security deposits, lease terminations, and safety standards.
- Your commercial property could have shorter vacancies and better tenant retention. Good property managers will be able to keep tenants happy by providing exceptional service, programs, and policies. They will also have effective marketing strategies to make sure vacancies are kept to a minimum.
- You can increase your investment property’s value. Property managers can share their expertise and give advice on how to upgrade your commercial property. A property management company can also initiate a preventive maintenance program to deal with potential issues before they can turn into real problems.
- You will have more time and be less stressed. Hiring a property manager or firm offers a plethora of personal benefits. As owner, you will not have to worry about the daily goings on of your investment property. You can use the time to work on your other businesses or spend it on the things you enjoy.
How to hire the right property manager?
Now that you’ve decided to turn over the reins of your real estate investment to a property manager, here’s how to hire the best one:
- Research. Go online and dig up everything you can about the firm. Check out their website, the properties they manage, and what people are saying about the job they do.
- Visit the property they manage. Are the common areas well maintained? Do elevators and other facilities work as they should? Ask to speak to tenants for how promptly their complaints are addressed.
- Verify their license and affiliations. In California, for example, property managers are required to have a real estate’s broker license. Trade associations also oblige their members to undergo rigorous training programs.
- Interview in person. Their reactions to your questions will be just as important as their answers. You’ll want a receptive candidate and not a dismissive one because their job requires them to deal with tenants.
To get the most out of your real estate investment, consider hiring one of the many commercial property management companies in California. For more information about this and other services, contact us here. You can also call us at 650.391.1758 (Tony) and 650.391.1781 (Ray) to learn more.
When investing in commercial property, closing the sale is just the beginning. Now that you’ve found a lucrative piece of California real estate, you must entrust your investment with a property management company that can help grow and maintain it. With so much at stake, it is crucial to choose a company that is competent, reliable, and transparent.
This guide will help you determine if the property management company of your choice is a good fit for your business and investment goals. These strategies will get you started on the search, as well as help you make the right decisions.
The state of California enjoys an active real estate market, thanks to the glitz and glamor of California’s cities,the booming local economy, and the charming residential neighborhoods throughout the state. Almost everyone is drawn by the vast opportunities California promises, which is why it is not surprising that many real estate investors have more than one property under their name here. These conditions have given rise to the need for property managers to govern their interests.
There are numerous rules and regulations thatproperty managers have to comply withto ensure the continued safety, well-being, and quality of life being enjoyed by California residents and investors.
Let us take a look at some of these conditions that property managers abide by in the Golden State. That way, those with plans of hiring one will better understand what to seek in a property management company.