Commercial Property Management for the Owner

General Real Estate Investing
1

Commercial Property Owners,

Since I am new and trying to break into the arena of buying and maintaining commercial property for income - besides the initial work-up, agreed upon contract, due diligence, earnest money, inspections/appraisals, etc… how extensive is your involvement if you hire a property management company to maintain your property? It sounds like - after you get the ball rolling and you’ve completed the necessary documentation and paid all fees associated with acquiring the property you sit back and react to problems and the property manager is on automatic pilot unless there is something unsual going on with your property. This is a simplied version of how I see it. If I am completely off base and I have minimized the role of the property owner, someone please set me straight. I heard that it’s just this simple, but I had hard time believing it. Looking for a commercial property education here :icon question.

Driley

2

Theoretically, it could be that easy. A few things to consider, just quickly off the top of my head –

  • are you prepared to pay the cost of the property manager? depending where you live that could cost you 10% of rents.

  • what will you get for that money you pay the property manager? e.g. that might only buy you rent collection plus taking calls for the proverbial broken toilet plus calling the plumber. I.e. repairs, snow removal, payment of bills, etc. could all be extra.

  • can you find even find an affordable and experienced property manager for your needs? many property managers won’t work scattered sites.

you might want to read “Property Management for Dummies” by Robert Griswold, who’s well respected in the field. good luck.

3

Thanks unwin99, I will do that immediately.

Driley