Do you own an office building but don’t want to worry about the day-to-day management of your property? The benefits of using a property management company almost always outweigh the cost.
Having a team to handle the rent collection, maintenance, upgrades, and more will ultimately save you time and money.
In this article, we explain the benefits of hiring a property management company including how property managers can:
- Help you reach your financial goals
- Keep your property well-maintained with a regular maintenance schedule
- Suggest property upgrades to keep your property up-to-date
- Serve as a maintenance representative so you don’t have to
- Build relationships with tenants – leading to renewed leases
1. A Property Management Company Can Help You Reach Your Financial Goals
Handling the financial management of your property can be a large undertaking. A property management company can help take this off your plate.
Property managers provide an assortment of financial statements helping you gain insight into the building’s performance. These statements are vital to future planning for your property and reaching your goals for your property.
A property manager provides several monthly financial statements including:
- Variance analysis
- General ledger
- Income statement
- Balance sheet
- Rent rolls
- Aged delinquencies
- Statement of cash flows (operating activities, investing activities, financing activities)
- Bank reconciliation statement
- Cash reserves summary
More information about each of these financial statements can be found in our article What Does a Property Management Company Do?
Budgeting and forecasting are important, especially when it comes to unexpected costs and repairs.
A property manager will estimate the income and expenses of the property and establish a budget to help you reach the goals you have for your property. Financial reports can be customized depending on your goals and needs.
An executive summary will be written periodically (typically monthly) to inform the landlord how the property is performing relative to the budget. If the budget is not met, the property manager will record the difference in the variance and explain the reason.
Property managers can also handle rent collections to ensure your tenants pay their rent on time. Multiple tenants with a variety of rental terms and rates, each with separate account balances, require meticulous record-keeping. Property management companies maintain tenant ledgers to keep track of each tenant’s account balance and rent schedule.
2. Property Management Companies Help You Keep Your Property Well-Maintained
It is imperative that the physical condition of your property is well-maintained. Property managers make sure the property’s infrastructure remains in good condition and repairs are made when necessary. Your property is a valuable asset and it can quickly deteriorate without proper care and consistent attention.
A good property manager will have a skilled engineering team that keeps track of detailed building system maintenance schedules for your property. These maintenance schedules are a great way to perform preventative maintenance checks so you can avoid any major repairs or other issues down the road.
In addition to preventative maintenance, property managers ensure the building engineers handle maintenance requests from your tenants and manage the vendors needed for repairs.
Ultimately, a property manager will help maintain the reputation of your property and keep it in good working order – delighting your current tenants and attracting new ones.
3. A Property Management Company Can Suggest Property Upgrades to Keep Your Property Up-to-Date
Property managers can also suggest what property upgrades you should invest in, such as new landscaping or other improvements. While upgrades may be costly, keeping a property updated and in good shape can pay off in the long run. Property managers will usually also have existing relationships with vendors to perform updates. This can help ensure you are getting the best price and your updates are done on time and on budget without you having to do lengthy research.
When you don’t update your property it will appear uninviting and aged. When you invest in the necessary updates, your property will have more appeal and people will enjoy its atmosphere – drawing more people to it in the long run and creating more customers. Do yourself a favor and keep your property updated.
4. Property Management Companies Serve as a Maintenance Representative So You Don’t Have To
As we mentioned before, property managers handle the day-to-day maintenance requests. Maintenance requests and general property maintenance come with long to-do and to-know lists, which can eat up your time and resources.
In addition to regular property inspections, property managers:
- Know whether a repair is a tenant’s or landlord’s responsibility
- Stay up-to-date on commercial real estate regulations affecting property owners
- Maintain code compliance with city ordinances
- Assist in managing tenant construction and capital projects
All of this saves you time and money in the long run and ensures your property is up-to-date and well-maintained.
5. Property Managers Can Build Relationships With Tenants – Leading To Renewed Leases
A property manager is your liaison with your tenants and essentially the face of your building. They are the team ensuring day-to-day overall customer satisfaction.
When a new tenant moves in, they work with your leasing team to make sure the transition goes smoothly for both you and your tenant.
Once a tenant moves in, a property manager helps your tenants in their day-to-day working lives. They hear tenants’ issues every day and may even be able to proactively correct any concerns about the building, ultimately leading to a renewed lease and saving you money.
From handling maintenance requests quickly and efficiently, to making sure tenants have the best working environment, a property manager can make or break your tenant’s experience. This is why it is so important to hire the right property management team.
Hiring a property management company is the best way to take the stress of managing a building off your hands. Reputable property management teams have years of experience handling the financial aspects, tenant relations, maintenance issues, and all other moving parts of your property.
Your asset is valuable, but your time holds just as much value if not more. Let a property management company free up your time so you can invest your time in more opportunities.
If you are looking to hire a property management firm for your property, schedule a consultation with one of our property management experts today.