Owning commercial real estate can be an incredibly lucrative investment. However, once you lease it out to tenants, you take on enormous responsibilities. You are responsible for the upkeep and maintenance of your facility. You must track your financials to ensure your lease rates are in line with what the market commands. You must work with vendors and third-party providers of all kinds.
You probably have little to no interest in doing these things yourself. That’s why you need to partner with a reputable, trustworthy commercial real estate property management company in Houston. Here are five questions to consider as you research your options.
1. Does the Property Management Firm Have Experience and a Diverse Portfolio?
Every business begins as a startup. However, you probably don’t want your commercial properties being managed by a company that is still learning the ropes. Additionally, the more commercial properties a management firm oversees, the more savings they’ll enjoy from vendors – savings that will be passed on to you. Before committing to a commercial property management firm, ask to meet the manager(s) who would be overseeing your properties. You’ll be able to ask them about their experience and get a personal sense of whether they’re individuals you trust.
2. Does the Property Manager Provide Financial Reports and a Budgeting Strategy?
A large part of a property manager’s job is to collect rent on clients’ behalf, address maintenance problems, and oversee upkeep on properties. But there’s much more to property management than these boots-on-the-ground functions.
Look for a property manager that uses sophisticated accounting software to provide financial services including budgeting, forecasting, comprehensive financial reporting, expense billings and reconciliations, tenant billings and receivables, and accounts payable. These capabilities are essential to meeting the performance goals you have for each of your properties. You should be able to count on your property management firm as a partner that provides useful, specific data that helps you understand how well (or poorly) your investments are performing so you can make changes as needed.
3. Does the Property Management Firm Have Preventive Maintenance Plans in Place?
Repairing and replacing materials and equipment is expensive. Ask the commercial property management firm you’re considering to explain its preventive maintenance strategy. It should be able to articulate, in detail, how it handles preventive maintenance on equipment and on the building itself.
4. What Is The Property Management Firm’s Turnaround Time for Tenant Inquiries?
Losing any tenant is a huge financial blow. One reason a tenant may choose not to renew his lease is a lack of timely response to maintenance issues or emergencies. You may own the building, but your tenants’ livelihoods are directly tied to the condition and appearance of the space they’re leasing from you. Retain tenants and keep them happy by choosing a management company that offers 24-hour, seven-days-per-week emergency response and quick response to tenants’ non-emergency needs.
5. Does the Company Take a Formulaic or Custom Approach to Property Management?
When it comes to efficiency, it’s understandable why some property managers use standard templates, checklists, and procedures to oversee all of the assets they manage. A generic approach makes life easier for agents whose portfolios may be diverse. However, a generic approach is not in the best interest of the owners of those assets. Your properties are unique. You have unique preferences. You have specific investment criteria and performance goals. Look for a property manager that offers a suite of services tailored to your individual needs.
Are you looking for a reliable, responsive commercial real estate property management company in Houston? The J. Beard Real Estate Company offers a complete menu of commercial property management services, ranging from overseeing preventive maintenance and tenant service calls to handling ad valorem tax issues and capital improvements. Contact us today to learn more.