When it comes to Commercial Property Management Services, selecting the right company can make the difference of having a good experience compared to a bad one. If you own any type of rental commercial property in the Riverside County area, you may know that running and managing your property can be extremely time-consuming and overwhelming. Whether you own retail commercial property, an apartment complex, condos or even single family homes, the IPA Commercial Property Management team can help.

Below is a quick summary of what you can expect when hiring a commercial property management company and some questions to ask when interviewing them. From accounting and administration to maintenance, effective commercial property management requires a dedication to creating value for you and your tenants.

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. 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.

Commercial Property Management Should Create Less Stress

Good commercial property management helps save property owners from having to worry about:

• Rent collections
• Track and assess late fees and holdover rents
• Deal with broken air conditioner units in the middle of summer
• Fix a leaking roof during monsoon season
• Prepare accounting statements such as balance sheets and P & L statements

11 Key Tasks You Can Expect a Property Manager To Do

If you have experience in managing property, you’d agree that it can be a lot of hassle to put on your plate.

Yet sometimes when you have too much to do with too little time, the best way out is really to bite the bullet and pay.Trust me. It’s fully worthwhile to pay that reasonable price to upkeep operations and keep tenants happy, than to be a miser and destroy your reputation as a landlord by providing poor service.

1. Determining the Rental Price

Determining the rent amount for any property can be difficult. The rent should be set at a competitive balance between an amount that will attract applicants and one that will deliver a profit. Although finding this number can be tricky to do, an established property management company will have the intuition and expertise needed to set a rent that is fair, competitive, and profitable.

2. Marketing and Advertising

You should expect any company that offers property management to take care of the advertising and marketing needs. If you do not keep up on marketing, when it comes time to fill a vacancy, you are likely to find it is quite difficult as no one will be aware of the opening and they will not know much about the property. Instead, with a strong marketing campaign that the property management team will run, you will not only be able to fill the vacancy, you are able to fill the vacancy with a high quality tenant.

3. Preparation for Tenancy

The work involved between the time a tenant vacates and when a new tenant arrives can be daunting. There will be loads of housekeeping, maintenance work, repairs and even pest management to contend with. A competent property management company will have their support networks, deep knowledge of smart fixes, and have probably done it hundreds of times over. And most importantly, they have their reputations on the line.

4. Screening Tenants

Having excellent tenants is critical for your building. The wrong ones can cause a high turnover and more vacancies later. A commercial property management company strives to fill the building with top-notch tenants by handling all prospect screening to ensure they would be an ideal match.

5. Negotiation

Negotiation might not be within your skill set. But property managers tend to be great negotiators. In fact, someone who is truly looking out for you might ask for more rent when there is room to negotiate without needing you to say it. They might even insert terms in the lease or rental agreement favorable to you that you might have overlooked.

6. Rental and Leasing Paperwork

One of the best things to get from working with a property management company is that they take care of all the paperwork that is needed for renting and leasing. If you have ever had to deal with this, you know that not only will it be time consuming, rental and leasing paperwork can also be quite confusing. On top of that, these are legal documents that you need to fully understand. These companies have legal experts on their staff, so this can reassure that everything will be done within compliance of the law.

7. Collecting Rent

The benefits of leasing your property are great, but ensuring all tenants pay their rent on time is crucial. Part of a property manager’s job is collecting rent from tenants and setting up an easy system for them. This way, the cash flow will always be positive and operational expenses can be paid on time. The manager will take action in case of late payments until the bill is collected.

8. Tenant Management

This is one of the most taxing parts of being a landlord. Tenants have a lot of expectations of their landlords. When hiring a company to take care of the property management, you should also expect them to keep the tenants happy. They do this by scheduling maintenance, making it extremely easy to pay rent, collecting packages and other deliveries for tenants and making sure that quality tenants are placed into any open vacancies.

9. Upkeep

Commercial property owners and managers are legally obligated to keep the premises in a safe condition for both tenants and the public. A commercial property manager will ensure your property is kept in good condition by handling repairs and maintenance in a timely manner. Experienced managers have a network of contractors like electricians, plumbers and glaziers that they can call on short notice, so tenants do not have to deal with extended power loss, dangerous conditions like exposed wires, and other situations that can harm their business.

10. Accounting

Commercial property managers can submit monthly reports detailing the financial performance of the property. These reports include but are not limited to:

• Monthly rent collections
• Maintaining records like signed leases, tenant sales information, bank statements, bank reconciliation reports, repair and maintenance invoices, and insurance bills.
• Paying taxes, improvement assessments, and amounts due under service contracts

They will also assist you with the preparation of the annual operating budget, which allocates specific amounts for utilities, repair costs, and other operating expenses related to the property.

11. Comply with regulations

A big reason why real estate investors hire property managers is because they do not have sufficient knowledge of local laws and regulations. This can be a huge problem in terms of compliance. A local manager should have deep knowledge of what needs to be done in order not to run afoul of the law. This will save you a lot of time from learning about them yourself. Keeping tabs of different laws in different states can also be confusing to keep up. This can ultimately lead to grave mistakes on your part.

Does the Property Manager Have Support?

Even the best property managers cannot do everything by themselves! The right support system is critical for them to succeed in delivering the exceptional service your board and residents expect and deserve.

That support should include:

• Assistance from accounting, purchasing, vendor relations and financial services specialists
• Involvement of human relations professionals for all personnel matters to ensure that you get the right level of on-site staffing
• Ongoing training to develop and improve management skills, keep up with industry standards and be informed about regulatory changes
• A 24/7 customer care center that can quickly provide them and your community with needed information
• Administrative support
• Technology and communication tools

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 emailed 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, you deal 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 rationale and positive manner.

• Strong Sales Skills

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

In a perfect world, you would find long-term, reliable tenants who pay rent on time, take excellent care of their property and have no intention of moving. Unfortunately, the world is not perfect. If one of your tenants does decide to move out, understanding exactly where your expenses are coming from will help you better understand the importance of retaining renters and minimizing tenant turnover.

Property owners are generally not aware of the high cost of tenant turnover. Whether you own one rental property or a thousand, turnover is something that all property owners deal with. Most landlords know that reducing their turnover rate makes sense financially.

Breaking down the costs can help you see the benefits of reducing turnover.

What Is Turnover?

Rental turnover typically refers to the period when one tenant moves out, and then the property is vacant until another tenant moves in. No rent can be collected during this vacancy period, but other bills and costs associated with the property will still need to be paid. As turnover costs can be quite high, most landlords work hard to keep these periods as short as possible.

Turnover rate is the percentage of renters that move out of a property at the end of each contract period. This rate is often used by landlords to help plan their budget, rent costs, and more as it can help them predict how much money they expect to need to invest in turnover periods.

Costs Involved With Tenant Turnovers

The tenant turnover cost is something that every landlord worries about whenever a renter moves out. Thankfully, you can keep costs fairly low by getting ahead of maintenance and repairs, attracting quality tenants, and charging an application fee. Most times, the amount of work involved in the turnover process is more of a hassle than retaining the tenant to begin with. This is where a property management company like IPA Commercial Real Estate can help.

1. Administration

Time is money in most industries, and property management is no exception.  When it comes to budgeting tenant turnover, you need to factor in the administrative time it takes to market your newly vacant property, process move-out paperwork, coordinate repairs and cleaning services, screen new applicants and process lease agreements for future tenants.

2. Marketing

Sometimes a simple online listing is all it takes to get your vacant unit rented fast.  But in a slower market, advertising your property can involve signs, flyers, or print ads, all of which will contribute to your bottom line.

3. Cleaning

Despite your tenants’ best efforts, they might not be able to get your property back to the level of cleanliness you require for the next tenant.  Depending on the type of rental property you own, cleaning is essential if you want to attract tenants. Showing prospects around a dirty place sends them a signal that the landlord does not care enough to keep the property clean. Very few industries can get away with a less than thorough cleaning.

Even if you use their security deposit to cover the cost of cleaning and repairs, there might be extra expenses that go beyond the deposit that will come out of your pocket.  If the vacating tenant has lived in the property long enough, some of the restoration expenses will not be covered by the security deposit at all.

4. Utilities

There is also the cost of utilities to consider. When your tenants are not in place and there is no one else to continue paying the electric bill, the water bill, and the gas and trash bills, you have to cover them yourself as a property owner. You cannot leave everything turned off. When vendors and contractors are inside the home, they’ll need electricity. When prospective tenants come to see the home, they’ll want to turn on lights and sinks.

5. Repairs

Once a tenant vacates the property, you have the opportunity to conduct a thorough inspection which may reveal some maintenance repairs that must be handled before the next tenant moves in.  Not only will repairs cost you money, but the longer it takes to get the property market ready, the longer you will be without rental income.

6. Advertising

Another essential tenant turnover cost is advertising. Unless you already have a new tenant lined up to take over, you will need to market your rental to potential tenants. Keep in mind that there are some platforms that allow you to post rental ads for free. However, many others do charge a small fee. Apart from the online route, other advertising options include flyers, newspaper ads, and printed signs.

7. Tenant Screening

It is important to screen your tenants before you sign the lease. In addition to a filled-out application form, you will also need to review various reports. These include credit reports, criminal background reports, and eviction reports. This way, you can confirm that the prospective tenant has a good rental history and can cover rent.

All of these reports, though, cost money. And, if you don’t charge an application fee, you will have to pay for them out of pocket. As such, it is advisable to collect an application fee so you can keep turnover costs low.

8. Vacancy

The longer your property sits between leases, the longer you will go without rental income. If you are relying on your rental income to cover a mortgage payment, you could notice a serious hit to your reserve funds until you find a new tenant.

How to Minimize Tenant Turnover

Tenant turnover is inevitable. Fortunately, there are ways to stay organized, and efficiently breakdown the expenses associated with preparing a property for new occupants. By being aware of the costs affiliated with turning over properties, not only are you are able to plan ahead, but you are also more likely to find innovative ways to keep costs to a minimum. The ultimate solution to avoiding these expenses is by maintaining happy tenants to ensure a low turnover rate in the first place.

One of the best ways to do this is to maintain a great relationship with your tenant. Communication goes a long way. When a tenant has a concern, make sure to listen. Acknowledge them and then try your best to address their concern.

Consider hiring a property manager, such as IPA Commercial Real Estate. Successful property managers are responsive and available, addressing questions and concerns as they arise — and in turn giving tenants the best experience possible. By creating a great experience for tenants, local property managers can help landlords reduce tenant turnover and avoid vacancies.

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.