When you own a commercial property, you may be wondering whether you should continue to oversee it yourself or farm that work out to a management firm that specialises in such work. This can be a big decision, as you might worry about the return you get on such an investment, but you should know that there's more to such tasks than managing maintenance and saving you time.
These days, most property management firms do a lot more than that – including dealing with tenants and handling vacancies and marketing, according to Saunders Ralston Dantzler. As such, they can be a major asset as a partner for any commercial real estate investors, not just those with several property managers.
One of the most challenging things for a property owner is addressing the many little things that can crop up and be a big pain for tenants, because it may require a lot of juggling tasks and making numerous phone calls. That is all work a property manager can handle with ease, especially because they likely have plenty of contacts who can do the kind of maintenance your property needs.
The value proposition here is obvious: You have far less to worry about as the property's owner and you are simply paying for fewer headaches and more peace of mind.
Every owner's situation is different, so you have to ask yourself whether it's a good decision for you. If you feel you generally have a handle on your landlord duties, it might not be necessary. However, if you regularly feel like this work is distracting from other things you have to do – such as if you have a "day job" in addition to owning the property – then it might be worth the price.
Certainly, you should crunch the numbers to determine whether your investment here – usually at least 6% of what you charge for rent, and typically a bit more than that – would pay off.
Whether you are considering buying your first commercial property or your 10th, it helps to have the experts on your side and guide you through the whole process. At Ray White Surfers Paradise, we've closed countless commercial property transactions for buyers and sellers alike, and know the ins and outs of every detail. Get in touch with us today to learn more about how we can help you find the right property at the right price.