When you invest in commercial real estate, you do not necessarily want to be involved in every aspect of managing those properties Commercial property managers oversee the day-to-day operations of buildings and complexes, such as malls, industrial units or office  buildings. Their duties typically include collecting rent, negotiating leases and supervising the maintenance activities. Commercial real estate management is anything but passive, and there is a significant amount of work that must be done to keep the investment in good working order.

In order to decide if you need a property manager, it is first important to understand what they are and how to spot a great one.

What is a Commercial Real Estate Property Manager?

Commercial property managers have the responsibility of overseeing and directing operations at properties, ranging from office buildings to retail spaces to industrial units. They will show spaces to potential lessees, maintain lease agreements and they will collect and process rent checks. They will also manage the daily requirements of these properties, which include custodial tasks and maintenance. This is a role that demands the ability to resolve customer service questions successfully, a high level of organization and an efficient point of contact for building owners and tenants.

What Does a Property Manager Do?

For simplicity’s sake, a property manager’s responsibilities can be divided into two buckets: operations and finance.

Operations

A property manager’s operational responsibilities are all about keeping the property running smoothly on a day-to-day basis. Depending on the property type, this could include things like:

Managing Tenant Issues

Your tenant communication plan is what will improve your relationship with tenants by responding quickly and resolving issues fairly. If a tenant has an issue, needs a repair, or has a specific request, it is the property manager’s responsibility to take care of it.

Managing Tenant Occupancy

An experienced property manager has dealt with hundreds (if not thousands) of tenants and generally know how to select applicants who will pay the rent on time and cause fewer problems. They know what type of tenant is most compatible with your property and will advertise space availability in a way designed to attract these parties. Professional property managers have considerable marketing and advertising expertise in both print and digital channels.

Staffing the Property

Larger commercial properties may have concierge staff, cleaning crews, and security personnel. If you purchased this type of investment property, the property manager would ensure that these employees are carrying out their duties as required. They may also hire, pay, and even terminate these employees. If the property requires full time staff, the property manager is responsible for finding and training the onsite management team including an assistant property manager, maintenance staff and accounting staff.

Preventative Maintenance Plan

Preventive property maintenance is the important task of managing regular inspections and repairs while equipment around the property is still functioning properly. The goal of preventative maintenance is to prevent expensive system failures and repairs before they happen. Also, catching problems early helps keep maintenance costs lower and reduces the risk of accidents.

Upgrades and Maintenance

As a property ages, routine upgrades must be made to HVAC, plumbing, and electrical systems. This will extend the useful life of the property and ensure it remains in good working order.

Maintaining and Replacing Landscaping

Commercial property landscaping is an essential part of a commercial property. It is the first thing that a customer will see when they come to visit  the project and it can make all the difference in how they feel about the businesses in the project. The right landscaping can create the perfect atmosphere for productive work, while a poorly laid out design could make  customers feel unwelcome and want to leave as soon as possible.

 Responding to Emergencies

Unfortunately, emergencies happen—a pipe bursts, a storm causes damage, or the power goes out. The property manager is responsible for responding to these types of events and keeping the owner updated about the status of necessary repairs.

Evictions

Evictions usually start with a notice period in which both tenant and landlord can either negotiate terms regarding payment or simply avoid dealing with each other entirely. If negotiations fail and the property manager or landlord does not agree to a cancellation of the eviction, they will obtain the services of an attorney before going to court. It is important for property owners to remember that going directly into an eviction without using any legal methods first may result in a dismissal of their case against the tenant.

Finance

The other major bucket of responsibility for a property manager is overseeing the property’s finances. This includes activities like:

Rent Collection and Processing

Having a good rent collection process and tool is essential if you want to run successful commercial rentals. It’s not enough to just collect a check each month, commercial tenants expect a high level of professionalism and as such it’s a good idea to explore the modern property management software solutions currently available for commercial property managers.

 Late Payments and Other Fees

As with managing any real estate, late rent payments can cause cash flow issues and negatively impact your investment’s potential.

Budgeting

Each year, the property manager is responsible for setting the property’s operational budget. To do so, they need to work with the property owner to ensure that the financial performance of the property tracks as closely as possible to  the investor’s financial projections.

Essential Skills Needed by Commercial Property Managers

 The property manager is working with a client for the long term on a variety of complex things.  They may be working on a number of issues for months if not years in the case of property upgrades, renovation and refurbishment works.

So what skills should a good commercial property manager have?

Excellent Communication Skills

Tenants and landlords must be able to easily reach the real estate manager for any non-emergency or emergency related issues. Therefore, a commercial property manager must possess excellent communication skills. It can be challenging to keep the lines of communication open when email inbox is full and phones are ringing. The environment can also be very stressful. It is the job of the property manager to be able to communicate concisely and clearly, both in writing and verbally.

Organized and Detail Oriented

Property managers, in general, collect rents, and they need to ensure that every rent is paid and posted to the account of the tenant as received. They need to keep financial records that detail each and every transaction made. Rent increase letters, lease renewals, and expiration, as well as rent invoices, should be  delivered on time. A skilled commercial property owner is able to keep site files organized, prioritize assignments and repairs and can multi-task.

Problem Solving 

Property managers are constantly dealing with unexpected issues that pop up during their days. In order to maintain control over the chaos that can arise, a critical skill the modern property manager needs to encompass is the ability to quickly and confidently solve problems – all while remaining calm and collected.

People Skills

As a commercial property manager deals with a lot of different people all the time. Therefore, the ability to work well with every individual is a vital skill that every property manager must possess. They must have a positive attitude, friendly and excellent customer support and service skills. This is also important to establish lasting relationships with new and existing tenants and clients. Property managers must be reasonably tolerant, patient and can handle issues and respond to service requests and complaints in a rational and positive manner.

Strong Sales Skills

It’s not all burst pipes and site tours. When all is said and done,  a property manager will constantly be selling  personal value as a property manager and the value of your property in marketing strategies, in meetings, and all  relationships.

Vendor Management

A property manager is in charge of managing vendor relations, from setting clear expectations to ensuring that all work has been completed. They are also responsible for coordinating vendor payment.

Why Choose IPA Commercial Real Estate?

Choosing the right commercial property management company can make real estate ownership a breeze. For people who own commercial and industrial properties, working with a respected property management company can be a great resource. With 30+ years of experience in the Inland Empire, the experience of the IPA Commercial Real Estate team provides a depth of knowledge regarding maintenance and project costs.

Just like management in any other business, a respected management company can monitor the care and financial requirements of any property. We can also help evaluate your rent structure. IPA Commercial Real Estate very focused on client properties and tenants and we have the skills and knowledge to make your ownership experience easy and pain-free.

We offer 24/7 Service from our team day or night! Call IPA COMMERCIAL REAL ESTATE at (951) 686-1462 to discuss how we can help you. Let us show you how to add value to your property.