Five Critical Property Management Objectives

If you are thinking about buying a commercial property or have already done so, you will soon be seeking to hire a property manager. What should you look for in a good property manager?

In this article, we will review five critical property management objectives and give some general advice on hiring and dealing with property managers. Read on to learn more.

Your property manager will be your “eyes and ears” at your commercial or investment property. While it is possible to hire separate companies to lease your property and to manage it, it is generally advisable to use only one company for purposes of consistency and simplicity.

Your property manager is the liaison between you and your tenants.

The more focused this function can be, the clearer picture you will have of the circumstances at your commercial or investment property.

Here are the duties of a good property manager:

I. Your property manager should strive to keep your vacant space rented or leased.

II. A good property manager collects rent payments in a timely manner and manages them properly.

III. Hiring, supervising and paying people to take care of jobs around the property such as window washing, landscaping, maintenance and repair is the job of the property manager.

IV. Your property manager must accurately record all financial income and outgo for your commercial or investment property.

V. You must be kept up-to-date on all the happenings involving your property. This includes expenses, incidents, upcoming repairs and so on. Your property manager must report to you on a regular basis.

It’s easy to see that it is very important to engage an excellent property manager to keep your property occupied and well cared for, keep your bills and taxes paid, keep your tenants happy and keep you informed. For this reason, it’s very important that you take care in choosing a good property manager.

When interviewing property management companies, be sure to talk with the person who will actually do the management on a day-to-day basis. This may be an entirely different person than the one with whom you initially speak.

When you talk with the individual who will actually be handling the management of your property, you should find out about such specifics as how he or she interacts with tenants to resolve difficulties. It’s very important that your on-site property manager have good interpersonal skills to be able to deal with your tenants pleasantly and effectively.

Your property manager should also be able to work with you pleasantly and effectively and be capable of supporting you in meeting both short-term and long-term objectives with your property.

Generally speaking, your short-term objectives are things you hope to achieve with your investment or commercial property within a year. Your long-term objectives can fall anytime outside of this time-line; however, five or ten year long-term goals are common.

Short-term objectives are also sometimes called operational objectives. These are objectives that have to do with the daily operation of your property, such as identifying tasks that need to be accomplished, hiring and supervising appropriate personnel and taking care of day-to-day expenses. The person or agency that you hire to manage your property should be able to work with you to keep these things taken care of.

Long-term objectives in property management are also sometimes called strategic management. These types of objectives involve making, interpreting and carrying out policies for long-term success. Both you and your property manager will need to be able to organize and focus on your day-to-day operations in a way that will lead you toward carrying out your long term goals for your property and for your own success.

Strategic or organizational objectives are applicable throughout the life of your investment. It’s smart to establish short-term annual objectives that act as steps towards your long-term (e.g. five or ten year) goals.

When you interview property management companies, you should discuss your expectations and goals for your property. Most property management companies insist upon signing at least a one-year contract. Be certain that the terms of the contract very specifically spell out the responsibilities and compensation of the property manager. Make certain that all five critical property management objectives are included before you sign on the dotted line.