A Guide to Commercial Property Management

Whether you want to manage it yourself or you have hired a commercial property management firm, ensuring that your property delivers an excellent business environment for your renters is a top priority.

Use this guide to deliver excellent service and the perfect premises for the renter. 

What makes Commercial Property Management so Different from Residential?

Is your forte managing residential properties? Would you like to delve into commercial properties? Understand that it’s a whole new ball game. Residential and Commercial property management is like day and night.

For starters, unlike commercial properties, there has been a surge in the residential property market in Edmonton. Check out our property listings for information on the best prices and rates. Sell inherited property

Other differences include:

  • It is harder to find renters for commercial spaces and keep them. 
  • Renters of commercial spaces are often more demanding and drive harder bargains. 
  • Commercial space management entails more detail in the paperwork and the handiwork. 

Doing it Yourself

Unless you are well-versed in property management and can commit to it full-time, avoid doing it yourself. It could take a toll on you and other investments you have. Nevertheless, if you are rearing to delve into commercial property management, here are tips to get you the highest return:

Understand your type of commercial property. Is it best suited for retail businesses, office setups, or is it an industrial property? Commercial spaces attract diverse renters who have unique needs and standards. With a grasp of the type of business space, you can deliver better services to your renters.

Be proactive about maintenance. Maintenance does not only keep the renters happy, but it also ensures that your investment gives excellent returns. It is easier to negotiate better leasing rates when your property is in mint condition. Also, the property will gain value in the long-run. 

Have an elaborate marketing process. Make it a priority to fill vacancies within your commercial space. Plan how to replace or fill any vacant spaces with the right kind of renters and within the shortest time. 

Be on top of your accounting, finances, and legal obligations. Keep up with the receipts, payments, rates, and taxes. Without an excellent financial management system, you could end up asset rich but cash strapped. Also, make sure the property meets all statutory and legal obligations. Errors are expensive.

Working with the Pros / Outsourcing to a Commercial Property Management Company

Many landlords who don’t have a property management background or the time prefer outsourcing to professional firms. Although these firms charge a fee, they are excellent alternatives. Some of the benefits of outsourcing include:

  • Commercial property management firms have well-trained personnel. They deal with routines like maintenance, dealing with renters, filling vacancies, and compliance with regulations.
  • They have in-house accountants and other specialists. These professionals ensure that your accounting, taxation, and legal requirements are in top form. They also help property owners make the most out of tax-breaks and other rebates. 
  • They have experience spanning different markets that translates to better rent rate negotiators and better judges of high-quality renters.

Hiring an experienced and reliable firm to manage your commercial property could relieve you of the stresses and give you excellent returns on your investment. But you must have the right managers and manage them accordingly. Here’s what you can do.

Perform extensive background checks of prospective firms and interview them thoroughly.

Check their responsiveness, ability to communicate, and some qualities such as dispute management, and track record with regulators.

When you have a commercial property manager on board:

  • Keep up with your investment by checking the income and expenditure reports.
  • Keep abreast with the property market in the area, and rent rates.
  • Conduct surprise checks of the property or hire an independent party to do it. 
  • Have regular discussions on the state of your property and renters.

These may seem like a lot to deal with, especially now that you have a property manager on the job. But technology can make it simpler. 

Make it Simpler: Use Commercial Property Management Software.

Whether you choose to outsource to an independent firm or DIY, commercial property management is complicated. 

But you don’t have to maintain elaborate filing systems (whether physical or digital) to do an excellent job. The solution lies in technology.

You will have access to crucial information such as renter turnover rates and income and expenditure reports. You will also get alerts for pending inspections or maintenance jobs. In some cases, you could access CRM systems and other cloud services that enhance communication and improve management.

Use these tips to stay on top of your investment. Consider using technology solutions. They make commercial property management simpler. Your property will be more attractive to renters. 

Surprising Things Homeowners Insurance Doesn’t Cover

Uh oh your beloved dog Fido bit a visitor to your home and that person required medical attention for their wound. That’s covered by your homeowners insurance, right? The answer is maybe. Some dog bites are covered and some aren’t. It often depends on the breed of your dog and your particular insurance company. If you’re a little fuzzy about what your homeowners insurance does and doesn’t cover, read on. You may be surprised to find out under what circumstances your insurance company won’t foot the bill.

Floods

If a flood occurs in your house because a pipe bursts, then that is covered. But if the water is from a hurricane or storm, then it probably is not covered. Flood damage can be expensive, and even though your homeowners insurance does not cover it, you can purchase additional flood insurance from the National Flood Insurance Program. If you live in a place prone to flood damage, then you should seriously consider getting the extra coverage.

Earthquakes

Damage caused by earthquakes is another surprising thing that homeowners insurance doesn’t cover. If you live in an area that experiences earthquakes, then you should purchase a special earthquake policy. You could get a break on your premiums if you make upgrades to your home that will help prevent earthquake damage.

Damage Caused by Neglect

Your insurance policy won’t cover damage that’s caused by not completing routine maintenance on your home. Routine maintenance includes keeping your home free from moisture, keeping debris away from the foundation of your home, keeping large appliances in working order, and trimming trees and bushes.

Sewer Damage

Is there anything worse than having the sewer line back up into your home? Yes — and that’s having to clean up and pay for the damage yourself. If a big storm causes sewer lines to back up into your home, then your insurance company probably won’t cover the damage.

Dog Bites

If your dog attacks a visitor to your home and they require medical attention, it may not be covered by your homeowners insurance. While some companies will offer some protection with a liability limit, you may not be covered if your dog is a certain breed. Breeds that are often excluded from policies include pit bulls, German Shepherds, Akitas, and Siberian huskies. When in doubt, check with your insurance agent.

Expensive Jewelry or Art Collections

Your homeowners insurance will cover some of your expensive jewelry or art, but not all of it. Most policies set a limit of around $1,500 on valuables like this. If you have a collection of jewelry or art that is of much greater value than this, you’ll want to get a floater policy. In order to qualify for this type of coverage, your items will need to be professionally appraised.

Detached Structures

Finally, not all of the detached structures on your property are covered by your homeowners insurance. This could include outbuildings, sheds, and treehouses. If you just built the perfect she shed where you can relax, then you should check with your insurance agent to see if it’s covered.