When you put money into a commercial investment property, you want to make sure that you are capturing every dollar possible (while avoiding as many headaches as possible). Many property owners choose to handle property management themselves. However, fielding maintenance requests, collecting rent, managing tenant turnover and handling the rest of the details alone can get out of hand — fast. Here are seven reasons to hire a professional property management company.
1. They can spot good tenants
Getting good tenants (and keeping them) can be one of the hardest parts about renting commercial real estate space. Professional property management companies know the right questions to ask and have a keen eye for good tenants. Plus, they screen for things like credit history, evictions and criminal records.
2. You and your tenants have a professional point of contact
If you own multiple properties or if your investment property is not your full-time job, fielding tenant requests can be time-consuming. For example, when something breaks, it’s not always convenient to drive over and inspect it yourself (and it can be challenging to stay cool, calm and collected when it’s your own money on the line). Professional property management companies are skilled at navigating tenant needs — whether it’s a simple maintenance request or a thorny tenant complaint. You can rest easy knowing that your property management company is the point of contact for those types of calls and that your tenants are receiving timely and professional service.
3. They manage efficient rent collection
Collecting rent on time is the key to making sure your investment property has proper cash flow. Many professional property management companies have online payment platforms that make it simple for your tenants to make payments. More importantly, hiring a professional property management company puts a buffer between you and the tenants if timely rent payment becomes an issue. The company will communicate with the tenant about the late or missed payments, make recommendations on how to find a solution and move forward with an eviction notice, if necessary. This protects you from being taken advantage of by tenants or losing money from late payments.
4. They help protect you from legal challenges
Professional property management companies can help you avoid potential lawsuits and handle any legal issues that may arise. They can ensure that you stay compliant with licensing requirements, local ordinances and state laws. Their expertise in landlord-tenant laws and network of legal professionals can help you navigate legal challenges relating to eviction notices or property damage. This can prove to be crucial, as one misstep in the eviction process can open you up to potential lawsuits. All in all, their expertise will help save you time, money and energy in the long run.
5. Streamlined maintenance and repair process
Property management companies have established connections with local contractors and repair professionals to help your tenants with urgent maintenance needs, saving you the hassle of finding reputable service people on short notice. They can even help procure after-hours emergency service if any heating, plumbing or electrical problems occur that require immediate attention. Plus, many property management companies have an online tool for tenants to submit maintenance requests, improving the tenant experience and promoting an efficient maintenance workflow.
6. Clear records and tax deductions
Property management companies keep detailed records of everything, including expenses, repairs, etc. This can be huge when it comes time to file your taxes as all deductions require backup documentation. Hiring a property management company helps you keep a record of all your commercial real estate expenses, rather than trying to track down all of those documents yourself during tax season.
7. Increase your property value over time
Increasing the value of your commercial investment property requires a combination of preventive maintenance, infrastructure improvements and the presence of strong, financially healthy business tenants. A professional property management company can help you find and keep good tenants, add structure and process to your maintenance needs, and identify areas for future improvements.
It’s simple — an investment in truly professional help today can lead to bigger dividends on your commercial property in the future.
At NAI Mid-Michigan, we know each property, owner and tenant are unique. Our attention to detail will power streamlined operation and efficient, bottom-line focused service. Plus, our transparent communication ensures that your finger is always on the pulse of what’s happening with your investment property. Our local team has experience in office, retail, medical, financial and industrial properties, including condominium association management.
Contact us today to find out how we can help you with your property management needs. We’re NAI Mid-Michigan, your best choice for commercial real estate services.