Investing in commercial realty to rent can be a lucrative profession for many; however, it does not come without a downside. Many inexperienced property owners perceive that all they need to do is move a tenant in and make sure the power stays on. Of course, there is actually much more involved in commercial rentals. In order not to have to deal with both the known and unknown headaches involved in commercial real estate investing for rentals, property owners should work with professional commercial property managers. This will allow investors to avoid many of the problems referenced below, while earning the most from their rentals.
Tenant Screening, Property Showing and Leasing
One of the most arduous tasks commercial real estate investors face, is the lengthy process involved in keeping rental property leased and earning money. It involves advertising available properties, showing them to interested parties, and screening potential tenants to ensure that they are the right fit for the property, are financially sound, and can pay the lease. This process alone can make working with commercial property management well worth an owner investing in such properties. It can provide the peace of mind of knowing their property is being leased by qualified tenants and that vacancies will remain low, since property managers only get paid when there are tenants in the building.
Maintenance and On-Call Repairs
The main area where investment owners don't understand what it takes to lease commercial space is building maintenance and repairs. Keeping up with contractors and repair services can be time-consuming, frustrating, and never convenient in the middle of the night for problems that need immediate attention. Commercial property managers are more equipped to deal with such issues and typically have contractors on call who can make emergency repairs without delay.
Rent Collection, Eviction, and Other Financial Issues
When rental payments fall behind, it creates problems for investment property owners. Dealing with late rent or tenant eviction for non-payment requires careful monitoring. This requires dealing with penalty payments, communication with tenants, and the legal process involved with eviction. If not done properly, getting back rent or eviction can be delayed. Commercial property managers deal daily with such concerns and understand the importance of following schedules and legal procedures to collect past-due rent or prepare to evict tenants as necessary. Management companies will collect the rent, pay for maintenance and repairs, and keep necessary financial records on such activity.
Need For Property Security
Working with an experienced commercial property management company provides investment owners peace of mind, knowing their properties are properly monitored and maintained. This could mean anything from routine checks of the rental property, to staffing security in a large, commercial building. In either case, property security is in the hands of a management company so owners do not have to worry about the security of their buildings.
Professional management of commercial property is a valuable added expense that pays for itself. When investing in commercial real estate for rental purposes, entrepreneurs should discuss management options with experienced commercial brokers who offer property management services. Anyone involved in commercial real estate investing can ensure vacancies are filled with the right tenants when working with experienced property managers who look out for their clients best interests!