Commercial property management or residential property management? Both share some similar points, but subtle differences will leave you seeking a different direction altogether. The truth is, there is no wrong answer to this question; it’s all just a matter of what best suits your lifestyle.
Maintenance fees are certainly one of the most important components when considering Commercial Property Management. Understanding how these fees are calculated can help you decide to go with a particular company or management firm. The majority of companies base their prices on the square footage of the property and the number of commercial tenants. It is also common for some companies to add vacancy fees, property taxes, and late fee charges. While it may be true that all of these elements are included in your monthly payment, they may also be assessed separately from your regular monthly price.
As with any other type of fee, commercial property managers are not required to disclose their expenses. They are not even necessary to discuss these fees with the landlord or management company in many cases. This can make it difficult for you to ask the question, how much are these monthly fees? That is why you should understand precisely how they are calculated before you agree to anything. Otherwise, you could find yourself paying hundreds of dollars extra, or even worse, being dropped by your landlord or management company.
There are, however, several things you can do to avoid the confusion over “how much are they charging?” Ask to see copies of last year’s rent receipts. These receipts will outline all of the different charges your landlord or management company has assessed against the commercial property for rent. Look specifically at the late fee and the pet fee. This information will often not appear on the receipts until you negotiate with your new landlord or management company. By the time you request these receipts, many tenants have already been in the property for several months, making it clear that these two fees are standard.
When you have determined the fees you will be charged by your real estate property manager or landlord; you need to decide if this fits your lifestyle and your goals for your future. One consideration is whether the fees you are being charged will help you achieve your financial goals. If you are looking for a career change and want to be paid well for your career, this may not be your career path. However, suppose you have never worked in the real estate field and do not see yourself needing to change this career. In that case, you may want to consider pursuing the opportunities associated with the residential property management or commercial property management industry.
Whether you are a new landlord or property manager who needs to evaluate your options, or you are a property owner who wants to find out if this is the right career path for you, there are several things you should consider before you make the final decision. Perhaps the best place to start is a good, thorough understanding of the difference between residential property management and commercial property management. Simply put, there are differences between the two. One of the first steps to understanding these differences is to contact a certified residential property manager. In contrast, a more experienced property manager may prefer to work with a more professional commercial real estate broker. While you do not need to have extensive knowledge of all the ins and outs of both types of property management, having at least an appreciation for the differences will be helpful in your decision when choosing between the two.
The next step you will want to take when choosing between commercial property managers is to understand the difference between retail shopping malls and shopping centers. When you are leasing space to retail tenants, you will be responsible for collecting rent and security deposits from your tenants. In addition, you will be responsible for overseeing repairs and maintaining a clean, safe, comfortable environment for your tenants. On the other hand, when you are managing shopping centers, you will be responsible for supervising the cleaning of the property, hiring employees, advertising and marketing the center, managing tenants, and managing the complex’s finances. Therefore, you will need to have extensive finance, operations, property management, and retail leasing background if you seek to address shopping malls.
Finally, you will want to consider whether or not your prospective landlord is licensed to manage commercial properties. Most landlords will not be permitted. However, some exceptions do exist. Before hiring the services of your new landlord, be sure to perform a background check and verify the licensing status. Additionally, find out whether or not the landlord has experience maintaining a particular property, as this experience could be vital to your success.