In Q1 2023, US offices cost per square foot $38 on average. Retail spaces averaged $18.09, and industrial space cost about $8 per square foot. A person could spend $19,000 for a 500-square-foot office.
Property ownership requires a lot of work to make ends meet. Ideally, commercial property managers will have enough experience to do all of their duties. It's also a matter of time allocation.
Many property owners have issues balancing time with all their duties. That's why it's a good idea to consider employing a commercial property management company. Here is a rundown of the property manager's duties.
Maintenance and Upkeep
A property manager performs maintenance so your investment doesn't decrease in value. People don't want to spend money on office or industrial spaces that are shabby or unsafe due to poor upkeep.
Part of building upkeep involves creating maintenance plans. This includes waste management programs and facility inspection checklists.
Property owners can do these duties themselves. However, it may be easier for many to have a hired commercial property manager do it for them.
Property managers collect rent, application fees, levies, and dues. They're responsible for issuing receipts and taking disciplinary action when renters don't pay particular fees.
Another part of collecting payments is record keeping. Managers must keep detailed records for future reference or financial disputes.
Handling Budgets and Financial Reports
Rent collection is one of the many accounting tasks property managers handle. They budget for capital expenditures and other expenses.
Another accounting task managers do is writing financial reports. The process is like record-keeping for payments because they must track how much money gets spent on what.
These reports help them analyze annual property costs alongside budgetary expenses. The point is for both sets of expenses to align, and there is no misallocation of funds.
Preserving Relations With Tenants
Property managers must understand how to build relationships with tenants. Much of what they do concerns interacting with renters, such as reviewing and renewing lease agreements.
If a tenant breaks the lease, the manager must have the proper communication skills to take action. Commercial property managers must also respond to maintenance calls and emergencies.
Hiring Additional Staff
Some properties might only need an owner and a property manager to run them. Others may need an entire staff team to keep things operating.
A property manager can hire others at their and the owner's description. One of these additional staff members may include an extra manager if the property and duties are extensive enough.
Finding Good Commercial Property Managers
Commercial properties aren't cheap, and you can't afford to charge less. However, no one wants to pay for one that's poorly maintained and ill-managed.
Good commercial property managers can help mitigate these problems. PMI Coal Creek is a full-service real estate management company that helps commercial (and residential) property owners maximize their profits.
We have over 20 years of experience helping investment owners like you. We want to help you through the management process. You can contact us through the online form or call 303-403-4222.