Managing commercial properties in a competitive real estate market like LA County requires expertise. Each type of unit demands a different skill set, and commercial rental owners expect personalized property management services that cater to such unique requirements.
At Bell Properties, we have successfully managed commercial properties for over a decade and know what kind of a property manager can make your commercial property investment a huge success.
Here's some crucial information that you need to know about commercial property management, the difference between residential and commercial property management, and the qualities you must look for while hiring a professional retail property manager.
What Does Commercial Property Management Involve?
Commercial properties include non-residential properties like offices, shopping centers, industrial buildings, and storage facilities. Since the management requirement for every class of commercial property is different, the duties of professional managers vary with every client. However, if they're well-qualified and trained, they can efficiently handle your requirements, regardless of the type of property you own.
Typically, managing a commercial property involves:
Marketing your commercial unit
Placing well-qualified tenants
Ensuring that they follow legislation and regulations
Supervising repairs and maintenance of the interior and exterior of the commercial unit
Commercial VS. Residential Property Management
If you are planning to grow your portfolio with different types of properties, you need to know the difference between residential and commercial property management so that you can plan your investments accordingly.
The properties for commercial and residential property management are very different, and so are their tenants. Residential property management deals with domestic tenants and the management of their accommodation, while commercial property management involves corporate clients in industrial spaces.
The maintenance fees are also different for both properties, with commercial property management requiring around 4-12% of the base rental fee. In addition, the governance and legislation for commercial property management are also different from those for residential properties. Therefore, property owners focus on finding a manager who can simplify this process and look after their assets.
Qualities to Look for in a LA County Commercial Property Manager
Commercial rental managers need to undertake multiple tasks and responsibilities as a part of their job. Having certain qualities can simplify things and empower them to handle your assets effectively. Here are a few qualities that you should look for in a property manager while hiring them.
Your LA County Commercial Property Manager Must Be Attentive to Maintenance Issues
Commercial properties comprise several units that can be rented to different tenants. This can lead to different units having independent maintenance issues simultaneously. As a property owner, it can be difficult to keep track of these tasks and complete them all on priority
Therefore, your manager must be attentive to minor and major repair issues and have enough resources to resolve them promptly. In addition, they should conduct preventative maintenance, carry out regular inspections, and fix even minor repairs in the space.
A good property manager considers servicing the HVAC and plumbing systems and fixing leaks and faulty fixtures as their prime responsibility. When choosing a commercial property manager, ensure they prioritize preventative maintenance. Otherwise, maintenance issues can cause inconvenience to tenants and their customers, whether it's an office building, a shopping mall, or a restaurant.
To know how a potential property management company handles maintenance, talk to their current clients about how well the company takes care of preventative maintenance on their properties.
Should Possess Enough Management Experience
When hiring a commercial property manager, make sure they have adequate experience managing the type of asset you own. If they have previously managed properties like yours, they can find creative solutions to combat problems arising while managing your rental.
An experienced professional is also familiar with the commercial real estate laws, landlord-tenant laws, rules, regulations, and the standard operating procedures required to manage your property.
Should Be Honest and Ethical In Their Approach
Honesty and transparency are essential qualities to seek in a LA County property manager since they make decisions that will affect your business. Whether it is about charging a reasonable rate for repairs or ensuring that their management practices are per the law, your LA County property manager should be impartial and honest in their approach.
To find a commercial property manager with these traits, you can ask for references or select them based on the reviews on their website. You can also get in touch with their previous customers and ask them about the experience of working with the professional.
Should Communicate Effectively
Several property owners successfully acquire new tenants to occupy their commercial spaces but fail to retain them for the long term. Choosing the right commercial property manager should help you overcome this challenge. Good rental managers communicate effectively and ensure that the client feels understood. They are also accessible via multiple communication channels like text messages, emails, or phone calls.
Most commercial property managers either employ automated systems or have online portals that register queries and maintenance requests from your tenants around the clock. With such efficient services, your property manager proves to you that your time and investment are their topmost priority.
Should Be Highly Professional
An LA County commercial property manager may have to deal with conflicts and tenant issues from time to time. In such cases, their ability to be patient and professional can come in handy. It will help them successfully manage vendors, tackle their demands, and get along with tenants, contractors, and other professionals in the field. They must also be aware of the importance of choosing the right tenant for your property and implement a thorough screening process without holding any personal biases.
Should Have an Accurate Account Management System In Place
If you've rented different units of your commercial building to different tenants, it can be difficult for you, as a non-professional, to keep track of all transactions for each of them. Therefore, it is essential to hire a commercial property manager who can manage the accounts seamlessly and accurately at the same time.
They should be great at multitasking and have exceptional organizational skills to:
Track rent payments of all the tenants
Maintain a thorough record of your rental income and expenses
Report annual taxes
You can ask your potential manager about how they manage finances, look at a few templates they use for documenting financial details, and check whether they use any account management technology/software.
They Must Have Thorough Knowledge of Commercial Real Estate Laws
A commercial rental manager who is skilled at everything but understanding and implementing laws is someone you should avoid. Insufficient knowledge about the federal, state, and local commercial real estate laws can put you through exhausting legal hassles. Therefore, you need to ensure that your manager knows enough about commercial property laws.
They need to know how to draft a clear and extensive commercial lease that includes:
Cleanliness and maintenance responsibilities of both parties
Ways of submitting maintenance requests
Use of common areas such as corridors, lawns, lobbies, elevators
Consider asking for a sample commercial rental agreement so that you get a clear idea about their lease details, clauses, and addendums.
Must Prioritize Customer Service
The success of a business depends on the quality of its customer service. If your property manager provides personalized and attentive customer service, you can attract loyal tenants who will happily renew their lease.
Should Be Proficient In Using Property Management Technology
In the current age of technology, tech-savvy property managers have more demand in the real estate industry. They understand how to use innovations in technology and help their companies become more efficient and profitable within no time.
Your commercial property manager should be proficient in using advanced property management software and tools to provide all-inclusive services for your space. These tools include rent management solutions like Rent Manager to manage financial data assets and attract new tenants.
The expectations of tenants are evolving day by day, and to attract them to your commercial property, you need tech-driven management. Bell Properties helps you manage your LA County commercial properties with the help of our professional management services. With over a decade of experience under our belt, we ensure that your requirements are met and fulfilled.
To get in touch with the most qualified commercial property managers in LA County, connect with us at Bell Properties.