Owners of commercial real estate may have vast portfolios of properties or they might have properties with multiple tenants. Keeping track of everything can be taxing, especially for those who have other business ventures. These individuals might opt to hire a property management company.
If you choose to work with a property management company for your commercial property, make sure that you pick a company that’s familiar with your market and that can put your interests first. The professionals who work for the company are responsible for several facets of running the rental; however, they ultimately answer to you for what happens.
One of the most important things you can do when you’re vetting out companies is to obtain a copy of the contract. This document contains an outline of what you can expect. Many contracts are a bit flexible so you may be able to get some terms changed, but be sure that any changes you agree to are in writing.
The pricing methods for these companies vary greatly so be sure you understand exactly what’s being charged and what services it covers. Typically, a property management company handles locating and vetting tenants, inspections, emergency repairs, and compliance with applicable laws. They may even provide the tax documents and income and expenditure reports for you.
Before you sign a property management contract, it’s best to have it reviewed to ensure you’re protecting your investment. Once you sign it, you and the company are bound by the terms. You can take legal action if the company breaches its duties as they’re listed in the contract, which gives you a measure of protection against trouble.