Tips for Managing Commercial Real Estate Investment Properties
Managing a commercial real estate investment property is often a much greater challenge than managing a residential property. As someone interested in investment property management, you’re most likely well aware of the challenges that you’ll face. But that doesn’t mean you can’t make the process easier by relying on some expert advice and tips. That’s why the professionals at Coakley Realty have provided some recommendations to help you become the best commercial property manager you can be, without any unnecessary stress or frustration.
Keep Your Tenants Happy
As with residential properties, you want to avoid tenant turnover whenever possible. This is even more urgent with commercial properties because finding new tenants is a lengthy, expensive process. During the months that you’re waiting to fill a vacancy, you’re receiving no rent payments, but you probably have to invest money into the building to keep it in good, leasable condition. This means you should do everything in your power to keep your tenants from leaving, including maintaining open communication, anticipating your tenants’ needs, and being proactive.
Keep Up with Maintenance
First of all, spending the money to maintain a beautiful, high-efficiency building WILL pay off in the long run. It’s an important part of keeping your tenants happy and can also help to reduce turnover. Additionally, it can allow you to increase what you charge for rent and attract more high-end tenants.
Proactive maintenance and building improvements also help you avoid higher costs in the future. For example, resealing the parking lot every three years may seem unnecessary, but your investment could delay the need for a much more expensive asphalt replacement by decades.
Know the Lease Inside & Out
Drafting a beneficial and binding lease is a task that requires legal knowledge and information about the particular industry your commercial investment property serves. It’s an even greater challenge when you realize that, in large properties, different tenants may sign multiple variations of leases. One of the most significant ways to improve property value is to diligently analyze and follow through on all the provisions in the contract that you have your tenants sign.
Hire a Commercial Property Manager
You may want to save on fees by attempting to tackle property management tasks yourself, but for a majority of commercial property owners, this is a big mistake. First of all, landlords are rarely up-to-date with the latest market issues and trends. This ignorance can degrade the property and separate it from the market, making it unappealing to prospective tenants. Second, it can be surprisingly challenging to keep your tenants happy, keep up with maintenance, and draft a beneficial and binding lease.
Commercial Property Management in MD, VA & DC
As a commercial property manager, Coakley Realty can take care of all of your investment property needs. In addition to monitoring and managing the tasks listed above, our team of professionals can also help your property thrive by providing the following services:
- Real estate portfolio management
- Tenant management, including property marketing, lease administration, tenant qualifications, and payment collections
- Building inspections, contractor management, and 24-hour maintenance services
- Financial reporting and services, including budgeting, rent rolls, monthly reporting, balance sheets, and direct deposit
No matter what type of commercial properties you own, from an apartment community or office building to a retail shop or industrial complex, we can help turn your investment property into a complete success.