Commercial real estate can be an amazing investment, but many owners don’t fully understand that managing office spaces and medical buildings can be time-consuming and downright frustrating.
Of course, it’s easy to see why people glamorize the idea of owning commercial investment properties. After all, there are countless success stories of real estate moguls sipping cocktails on a beach while rent checks magically make their way into their bank accounts.
But we want to let you in on a little secret: Those successful investors hire professionals to take care of the tough stuff so they don’t have to.
It doesn’t matter how modern or luxurious or impressive your property is – problems are going to arise. The question is, who’s going to be there to fix those problems when they happen?
Here are 7 reasons why that person should be a property manager (not you).
1. A good property manager can save you money
While it’s true that you’ll have to pay a property manager a monthly fee to look after your office or medical space, doing so can actually save you money in the long-run. Commercial property managers know exactly what your property is worth in monthly rent, and they frequently conduct thorough market analyses to make sure those numbers are current. They also know how to fill vacant units faster than a typical landlord, because they have great networks and are established in their field. They meticulously screen every potential tenant, which is more likely to result in quality tenants who pay rent on time and choose to renew their leases when the time comes.
2. Property managers know the law
Unless you’re a lawyer, you probably aren’t an expert on state and federal laws regarding tenants rights, discriminatory practices, providing a safe environment, repair responsibilities, lease documentation, or required disclosures. A property manager keeps up-to-date with these laws, which can protect you from serious legal trouble down the road.
3. Your time is precious
If we had to guess, we’d say you bought a commercial property because you wanted to earn passive income – not so you could work harder. When you hire a property manager, you no longer have to devote time to fixing every single issue that arises. If the roof has a leak, the tenant calls the property manager. If there’s a plumbing issue, the tenant calls the property manager. If there’s an issue with the hot water heater, the tenant calls the property manager. You get the point.
4. Property managers know exactly who to call when things go wrong
Calling a random handyman from a Google search can be a risky maneuver, but property managers don’t have to go that route. They have well-established relationships with vendors in every industry, so they know exactly who to call when there’s a problem – and they oversee all maintenance projects, making sure the job is done right the first time.
5. Property managers allow you to invest further afield
If you manage your own commercial property, you have to make sure you’re always nearby in case something goes wrong. Hiring a property manager allows you to invest anywhere you want – even in another country! This maximizes your profit potential because you’re no longer limited to one specific area.
6. Property managers chase up rent
The goal is to have tenants who pay on time, every time. However, that doesn’t always happen. When a tenant is late paying rent, things can get awkward if you’re a private landlord who doesn’t know how to ask for what you’re owed. A property manager can do it for you, keeping it professional and saving you the uncomfortable hassle.
7. Property managers are marketing experts
Commercial real estate is different from residential real estate, as it takes more than a simple ad on Zillow to find tenants. Commercial property managers have written hundreds of ads for properties just like yours, so they know exactly how it’s done and where it needs to go to receive maximum exposure.
If you’re looking for someone to manage your commercial property in the San Diego area, Kronos would love to help! We have a strong track record of working hard for our owners, maximizing their profits and freeing up their time so they can focus on other things.
We would love to speak with you about your commercial property! Contact us today at 619-488-7870 or 858-956-5983.
