As a landlord, you understand the need for some extra hand with your property management. While many rely on employee support, such as a resident manager, others may need assistance, making it ideal to hire a property management company. For instance, the property management industry reached a market size of $88.4 billion in 2020 in the US alone.
Hiring a property management firm can be very resourceful for your business or property, yet it wouldn’t come cheap. It may require you to work with a property manager, assistant property manager, property administrator, an accountant or accounting team, and a maintenance engineer to handle various roles to facilitate your commercial property ownership.
What does a property management company do?
Engaging a property management company can be beneficial to your business by saving time and money. However, the benefits may be categorized in two; either financial services or management services.
In broad terms, a property management firm helps landlords achieve their property financial goals, which fall under three main categories; budgeting, rent collection, and accounting. Property managers provide varying financial statements to help you gain more insight into the facility’s performance. The monthly financial statement considers variance analysis, income statement, balance sheet general ledger, rent roll and bank statement reconciliation, aged delinquencies, and cash flow statement. Property management firms also prepare a cash reserve summary which enables landlords to ascertain the distributions to be made or otherwise. It includes all things from leasing commissions, capital improvement taxes, and other accruals.
Like almost everything else, your property value diminishes without any proper care. A good property management company or manager will prepare a comprehensive maintenance schedule for inspections on your facility, lighting, and HVAC. Repairs and maintenance services are crucial to keeping your property in top condition. They may likewise recommend certain upgrades and improvements. Although upgrades may seem expensive, keeping your property updated will pay off in the long term. This creates an invitingly appealing look and positive atmosphere to attract people and earn new tenants, and that’s certainly what every landlord wants.
Why you should hire a property management company
While hiring a property management team has many benefits, they can be expensive. Moreover, depending on a property management firm isn’t for everyone. This is why you should consider a few factors to appreciate whether you need one for your business, including;
- The number of properties or rental units owned
- If you want to treat the property as strictly business and don’t want to involve in its daily management
- If you don’t have enough time on the hands
- If you don’t live closer to your commercial property
- When you realize you need more support following business growth.
A quality property management company is vital for every commercial property homeowner. While it may be expensive, it is evident that it’s well worth the investment. Apart from taking care of your property, a property management company can likewise help you reach your financial goals.