As a commercial property owner, you may own several different pieces of real estate, from office buildings to shopping centers. With all of these properties to maintain, it may be helpful to hire a resident property manager. This manager works on-site to maintain your interests as owner and to handle any issues that may arise with your tenants.
Look for a Licensed Manager
Before you hire a resident manager for your commercial property you have to make sure the applicant you choose complies with all of your local legal requirements. One of these requirements is for the manager to have a real estate brokerage license. The property manager should be able to handle the day-to-day functions of property management, including completing leases, attracting new tenants, handling tenant issues and collecting rent. Your resident property manager should be appropriately licensed in your state.
Provide an Office Space
To have a resident manager at a commercial property, you have to provide the manager with somewhere to work. Your resident manager should have an office located within the commercial property where tenants and prospective tenants can come to see the manager, discuss issues and pay rent. Resident managers should also have regular office hours, a place to greet tenants and somewhere to store records, such as financial documents, rent payments and copies of tenant lease agreements.
Find a Manager with Experience
Before you hand your commercial property over to a resident manager, you have to make sure the candidate has adequate real estate experience. Some states require a property manager to have at least a few years of real estate work experience before she can become licensed. Handling a commercial property is a complicated task. The manager must attract tenants through advertising, collect rent, write financial reports for management, prepare for city inspections and negotiate vendor contracts. The manager must also ensure that all vendors, such as the landscapers and cleaning crew, are doing their jobs correctly and report any issues. All of these tasks require the property manager to have some experience in commercial real estate and be able to anticipate issues before they occur while also managing costs for ownership.
Insure Your Investment
Maintaining current insurance protection for each of your commercial properties is extremely important to you as owner. Without adequate insurance, your bank may withdraw funding for your mortgage, and a storm, fire or accident may cost you a lot of money. In addition to protection from guest accidents and property issues when hiring a new resident property manager you should determine whether your policy covers your manager's actions. Before your new manager starts, you have to notify your liability insurance company of the new resident property manager's appointment to make sure he is covered while completing the duties of his position. Your resident manager should also make sure the company has a current certificate of insurance on file for each tenant at the property.
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