Reasons To Hire A Company That Specializes In Commercial Property Management When Hiring A Property Manager
If you own a commercial building, you may think that you can hire any type of property manager to help you lease out and care for your building. However, commercial property management is very different than residential property management. While both types of property managers will help to determine fair market rent for your space, screen potential tenants, and care for your building, there are a few key differences between commercial and residential property management. Here are a few of those differences and the reasons to hire a company that specializes in commercial property management for your commercial property.
Rent and Allowances for Commercial Properties Are Different Than Residential Rents
Residential rent is fairly straight forward. When it comes to commercial rent, it is not as straightforward. A tenant may be given allowances for flooring or painting. There may also be a base rent price, plus a price for CAM fees. Additionally, most rental increases are added into a commercial lease, which typically tends to be a multi-year lease, rather than the one year lease that is customary with residential leases. An experienced commercial property manager will know how to work the lease, will know what rental prices are in the area, as well as what common allowances are given, to ensure your property is competitively priced.
Caring for a Commercial Property is Different Than Maintaining a House
Another reason to hire a commercial property manager is that caring for a commercial property is different than maintaining a house. If you oversee a commercial property, you may have to care for the building, as well as the landscaping, parking lot, and walkways. You have to ensure lights work and you have to ensure the property is safe. Otherwise, you, the owner can be held liable for accidents that occur due to their property not being maintained.
The Screening Process for Businesses Is Different Than for Individuals
The final reason why you should hire a company that specializes in commercial property management when hiring a property manager is that the screening process is different for businesses compared to individuals. The credit history is different for businesses, and new businesses, in particular, may not have rental history, so there are other factors that need to be looked at. An experienced commercial property management company knows how to screen businesses.
If you own a commercial property, it is beneficial for you to find a company that has experience in or specializes in renting and maintaining commercial properties. This helps to ensure that the contract is legal and binding, that the rent and allowances are fair for the property and that the building is being properly cared for and maintained.
For more information, contact a commercial property management service in your area.