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How to Manage Commercial Properties
A commercial property may be managed by the property owner (referred to as owner-managed) OR by a third-party property manager/management company. In cases where a third party is hired to manage the property, the owner may choose to co-manage the property in conjunction with the hired party. In fact, it is recommended that owners work closely with their property managers so that they stay informed about their investment. For the sake of simplicity I have referred to all types of managers as “property manager”.
Management Topics Covered
Effective property management requires the ability to handle a wide range of issues. For example, managers and owners will be expected to deal with:
- Marketing: finding tenants and buyers
- Customer Service: keeping tenants happy
- Collections: rent collection and evictions for non-payment
- Lease Negotiations: negotiating new leases and re-negotiating current leases
- Building Compliance: keeping the building in compliance with state and local building codes (fire safety, handicap accessibility, ect)
- Repair and Maintenance: most common are plumbing, HVAC, roof, landscaping, pest control, ect.
- Contract Negotiations: negotiating service contracts with vendors who service the property
As you can see, running a property requires knowledge about the law, marketing, customer service, and even construction/repairs. I have dedicated one part to each of the key issues described above. Part 2 of the series will cover how to effectively market a commercial property. Stay tuned!
The information in this article is for general information purposes only. Nothing on this or associated pages, comments, answers, or other communications should be taken as legal advice. The information provided is not intended to create, and viewing of this information does not constitute, an attorney-client relationship.
© 2012 Bahin Ameri