Owning commercial real estate can be a risky investment endeavor, but also one that yields large monetary rewards. Most commercial real estate investments provide owners with strong monthly income streams and a solid return on investment realized over time.
To protect these income-producing assets, most owners will choose to invest in professional property management to maintain all day-to-day property operations. From handling rental payments to maintenance requests to common area construction projects, a property management company will ensure the current and future profitability of an investment asset.
Not only will hiring property management maintain the quality of an asset, it’s also crucial to tenant satisfaction. After all, keeping tenants happy will make sure a property sits at high occupancy, earning a high monthly income stream, versus an empty property earning nothing.
Since it is so crucial to an owner’s bottom line, it’s important to seek quality property management, here’s what to look for.
Hiring the Right Property Management
Look for Experience, Not Price
When it comes to property management, an owner should never hire based solely on price. Since the physical maintenance and occupancy of a commercial property is so crucial to seeing a high return on the investment, hiring property management is no time to be cheap. And believe us, you always get what you pay for.
While it’s ideal to shop for the best value, those seeking property management should always hire based on experience and quality over all other determining factors, including price. And what is that cost? On average property management firms will charge 7% to 10% of total collected rents per property. This percentage will vary by geographical market and economic conditions.
What happens if you find property management you love, but you aren’t sure you can afford their services? There are a couple ways to negotiate a more affordable rate. First is asking for a price break if you hire the firm to manage multiple properties. Second is tiered pricing. This is involves starting out at a lower rate set to increase later when/if the property manager meets occupancy and quality goals.
Look For Smart Technology
When deciding on a property manager it’s important to seek a provider who offers innovative technology platforms. Since most business management happens online you will want a property management firm who offers online owner and tenant portals. From tenants paying rent and submitting maintenance requests to owners accessing operating and budget reports, an online portal provides easy accessibility and flexibility. A convenience that is important.
Seeking Property Management in the Metropolitan Milwaukee Area?
If you have a commercial real estate asset in and around metropolitan Milwaukee markets and are seeking property management services, please reach out! The SVN | Hintze Commercial Real Estate Property Management (PM) team provides our clients with quick and easy opportunities to increase the net operating income of their asset(s), effectively increasing the value of their investment. Our accredited and professional staff has the experience and skills to manage assets of every type and would love the opportunity to work with you. Contact us today!