Owning and investing in commercial real estate can be quite rewarding, but managing the property yourself can be time-intensive and cause unnecessary stress. It’s important to know what is included in owning commercial property and what benefits a commercial property management company could offer you. Here are some pros and cons you may want to consider hiring a commercial property manager to help with your properties:
Pros of Hiring a Property Management Company for Your Commercial Space
Leasing Services
One benefit of hiring a commercial property management company is the leasing services they can offer you. At Vista, we have a dedicated leasing team that helps qualify incoming tenants for your property, running credit and background checks when necessary and reviewing potential tenants’ finances to see if they’re in good standing before lease negotiations start. A property manager can take the stress and time of screening tenants off of your hands, ensuring that problematic tenants don’t make it through the screening process and that you end up with quality tenants who are looking to stay long-term.
Maintenance and Customer Service
On top of screening all potential tenants for you, once a tenant has been found your property manager will handle all maintenance issues and customer service questions that the tenant may have. This allows you to rest easy knowing that the day-to-day operations are being handled efficiently. Not only will a property manager handle all maintenance issues, but they’ll be able to offer you lower repair and maintenance costs than if you handled it yourself. Property management companies have years of partnerships with reputable vendors and contractors that they can rely on to get the job done, and get it done right the first time. In addition to saving you money, they’ll also be able to save you time on emergencies because they know exactly how to manage emergencies effectively.
Property Accounting
Accounting for a large commercial property can be time-consuming and requires specialized knowledge. Commercial property management companies will track your income and expenses each month and compile detailed financial reports for you monthly and quarterly. This helps you prepare for tax season as well as makes your life substantially easier if your bookkeeping has been done properly the entire time when you decide to sell the property down the line. At Vista, we have the ability to use a variety of real estate specific accounting systems to provide timely reports that meet each client’s specialized business needs.
Marketing and Expertise
Last but definitely not least, a huge benefit of hiring a property manager is the experience and expertise they bring to the table. Not only are you hiring a professional who has years of experience in marketing and managing your property, but they also have expertise in the area you are choosing to invest in. Their experience and area expertise can ensure that you get the most out of your investment and allow you more time to focus your attention on new projects. Who wouldn’t want more free time, more freedom, and less stress so that they can concentrate on the next big investment?
Cons of Hiring a Property Management Company for Your Commercial Space
Costs Can Add Up
One potential drawback of hiring a commercial property manager is the cost. Management fees, typically ranging from 4% to 12% of the rental income, can seem steep. However, it’s essential to consider the value added by these professionals. Property managers can save you money in other areas, such as securing lower maintenance and repair costs through their vendor partnerships, reducing vacancy rates with better tenant screening, and helping maximize rental income. In the long run, the time, stress, and potential cost savings on repairs and tenant turnovers may outweigh the initial fees.
Less Hands-On Control
Hiring a property manager means entrusting them with the day-to-day operations of your property, which can feel like giving up control. However, for many property owners, this is actually a benefit. With a property manager handling tenant relations, maintenance, and emergencies, you can free up valuable time to focus on other investments or business ventures. Instead of worrying about every small decision, you can rest assured that professionals are ensuring your property is running smoothly.
Risk of Inconsistent Service
While there is a possibility of miscommunication or inconsistent service when working with a management company, this risk can be minimized by carefully selecting the right partner. Opting for a reputable, experienced property management company with a track record of excellence ensures that your property will receive the attention and care it needs. Reliable managers work proactively to address tenant concerns, resolve maintenance issues quickly, and communicate effectively with property owners, mitigating any concerns about service quality.
The benefits listed above are just a few of the reasons why a property manager can be a good decision. Ultimately, a commercial property manager is there to help you make the most of your investment. If you’re in Dallas or the surrounding areas and are interested in using a commercial property management company that is honest, upfront, and experienced, then please don’t hesitate to contact us at Vista Holdings to learn more about what we can do for you.
