Commercial property management companies specialize in helping clients to manage their commercial properties more efficiently. While these companies have offered to provide a valuable service, there are property owners who have never seriously considered hiring the services. Some don’t have sufficient information regarding the roles and the benefits of hiring a commercial property management company. Of course you’ll flinch at the thought of spending your hard-earned money on something that you don’t clearly understand. Others have been lured to believe some common misconceptions that go around about property management. As a result they have feared to try their luck in it. If you want to get the most out of your commercial property, you need to dispel all those fallacies you’ve heard and get the truth about what property management is all about. Read about these common misconceptions and learn the truths in this article.
Misconception #1: You lose control over your commercial property when you hire property managers
One of the common misconceptions is that you’ll lose control over your investment when you hire a commercial property management company to manage it. For instance, you may be concerned that the management company will authorize major repairs and upgrade without your input. Well, this is not usually the case. A professional property management service must ask for approval from you before any repairs and upgrades are executed. The only time that they will do repairs without your approval is when a structural threat is identified in the building and you’re unavailable.
Misconception #2: It is expensive to hire a property management company
This is a particularly common misconception about property management services. It is said that property management companies are extremely expensive to sustain. Like any other service provider, your property manager will demand for a pay for the services they provide. But, unlike other professional service providers, property management companies are paid on a commission basis. This means that you’ll not have to pay for the units that the company was unable to rent out.
Misconception #3: Property management is not a hard job and anyone can do it
Many commercial property owners think that managing a property is a piece of cake and they can handle it on their own or simply employ an idle relative to do it. This is far from the truth. You cannot manage the property properly without knowledge and experience. You might save the cost of hiring a professional but it will eventually prove to be a much costly affair. You need to be well versed with property laws. For instance, a plumbing problem caused by a renter is legally not your responsibility. You might not be aware of this but a commercial property management company does.
Misconception #4: Good tenant care doesn’t necessarily translate to constant flow of income
Vacant units mean zero income. The work of a property management company is to make sure that units are occupied at all time. They also work tirelessly to ensure that the value of the property increases as well as rent prices. When your property is professionally managed, the risk of damage on the property is going reduce, and instead of being depreciated your rent price will appreciate. This means that you’ll be making more and more money each year.