What To Look For In A Commercial Property Management Company

If you are a commercial property investor, you may outsource the task of property management to a commercial real estate management firm. Most commercial property investors and owners have property management firms manage their properties because they personally lack the time, maintenance skills, and connections with prospective tenants to properly handle their commercial real estate.

If you are a commercial property owner who needs the assistance of a reliable and reputable commercial property management firm, here are a few things to ask:

How do they market and advertise vacancies?  Are they using face-to-face networking, social media channels, print ads, ads on real estate related websites?  The broader their advertising base, the better they will be able to find qualified tenants for your commercial property.

How do they show commercial properties?  Are they willing to meet with potential tenants after business hours? If yes, chances are good that the commercial real estate management firm is flexible and eager to serve their clients.

What is their tenant screening process?  If they run background checks and request business financials from potential tenants, that’s a good sign. If they screen tenants based solely on a meeting and a handshake, that may cause problems later.

What is their payment collection process?  If they are using technology to accept payments, including automatic deductions, they are a pretty savvy property management firm.  Make sure to find out what their collections process is with all their commercial real estate tenants, including past-due rents.

How do they keep maintenance costs low?  Ask the commercial real estate management firm if they have a maintenance person on their team or if they outsource maintenance projects. Ask the property management company to thoroughly explain how they handle maintenance issues.

How do they handle after-hours emergencies?  Is there someone available to answer the phone 24/7? Ask the property management firm to fully disclose their emergencies processes in the past and what they have learned from their experience.

What type of accounting services and reports do they provide? Most property managers offer full reports to all the commercial real estate owners. These reports include valuable information that will help you at tax time. If the property management company has its own accounting services, that’s a bonus. This will help save you time filing with the IRS.

What is the fee structure used by the commercial real estate management firm?  Is it a percentage? Is it a flat, monthly fee? Ask questions of the prospective property managers so you can get a clearer understanding for your Return on Investment.

What types of liability insurance do they carry? Insurance protects you and your commercial property from lawsuits, and that is extremely important. If they don’t cover certain liability insurance, are you expected to pick up additional insurances?

What is the fine print on their contract?  Read through the fine print and make certain that everything looks agreeable. If you don’t, you may get caught in a contract that you are unwilling to keep. It is always best to read the fine print before signing contracts.

Want to know what makes CMG special and unique in the world of property management and commercial real estate management? We own several commercial properties ourselves and we know what to look for in commercial real estate deals. Plus, the CMG team will do whatever it takes to earn the trust and respect of our customers, vendors, investors, and business community. When you choose CMG, you can rest comfortably with the knowledge that all of your property management and commercial real estate management needs are in the hands of seasoned professionals.

Contact Jim Provost and the CMG team today to schedule a free consultation to discuss your commercial real estate management needs:  707.575.5500.