Owning a great number of commercial properties for rent is a big responsibility. This is one of the reasons many property owners hire experienced commercial property managers. With professional help, you can focus on important things for your commercial property investment.
Here are a few things you need to know about this set up:
When You Hire a Property Manager
Do not just hire the first property manager you see from an ad. Get recommendations from colleagues or people who have been in the commercial property business. Search online or check review sites for referrals on Sydney’s commercial property managers. When you find some viable candidates, schedule an interview with them. Enquire about their previous experiences in managing commercial properties.
Roles of a Property Manager
- Looking for new tenants
- Collecting monthly or weekly rent from tenants
- Managing repair needs of your properties
- Answering the concerns of the tenants
- Preparing evictions
- Inspecting the commercial units regularly
In a typical set-up, property managers get at most 10% of the total rental costs of the properties they oversee. Some will ask for additional charges, especially if they advertise and set up vacant units for new tenants. The rate and scope of the salary depends on how you negotiate with the manager. All terms must be clear in the contract to avoid disputes.
Roles of an Owner
You still have to do some things even if you hire a manager. As the owner, you are responsible for processing the property tax, mortgage and insurance payments regularly. Approval for any major expenses to maintain your commercial units will also be your responsibility. Review how the manager is doing, especially when it comes to your properties’ repair and maintenance needs.
If you decide to hire a property manager, make sure that person is someone you can trust. This will give you peace of mind that your property is in the right hands.