How a commercial property manager is paid
What is a property management company and why would anyone use it? If you’re like most, you probably conjure up images of an apartment building in midtown Manhattan when you hear this term. However, the truth is that these companies serve a number of individuals and businesses small and large in towns and cities around the world. In fact, you may need or benefit from these services and not even know it.
So, let me take this opportunity to introduce or familiarize you more with the role, services, and benefits of US-based companies.
The purpose of these signatures is evident in your name; they manage the day-to-day business of various properties. This includes a wide range of services necessary to operate or maintain the houses, apartments, townhouses, and condominiums that are under your control.
Someone who owns a property, such as an apartment complex, could hire a company to handle day-to-day functions and maintenance. Tenants then deal directly with these companies as the “face” of the complex to whom they pay rent and present any issues. And, given their exposure, these companies are also often in a unique position to help individuals or businesses seeking real estate investment opportunities.
As a property owner, a management company would likely perform any of the following services on your behalf: property management (for example, unit advertising and display, applicant selection, and lease management), administrative management (for example, resolution management, statements, and reports), collection services (eg, rent, fees, income, and delinquencies), maintenance (eg, interior and exterior repairs, improvements, cleaning, etc.), and more.
Therefore, if you are a property owner, hiring the services of a property management company may be more effective for your business. Allowing such a company to perform these functions will save you not only time, but also money. This is because these managers often have multiple properties under their control and thus can take advantage of economies of scope for necessary services such as lawn maintenance, plumbing, and repairs. In addition, these managers often know the market better and can create the best possible scenario for a property to remain occupied.
Working with these companies is also beneficial to tenants for two reasons. First, the 2008 census reported that there are more than 129 million housing units in the US alone, this can make it difficult to focus on those who have your specific requirements. But because you will most likely have multiple properties, property management companies are best suited to locate you in the one that best suits your needs.
If you have a property that you would like to have managed, are looking to invest, or need a place to rent, consider the services of a trusted property manager. You can find helpful tips on choosing the right company in my article, “Hiring a Property Management Company Checklist.”
