How to Choose a Property Management Company
Whether it is a commercial or residential property, most investment real estate owners have a property management team that works for them to oversee the operations of their property. The main role of the property management team is to manage routine tasks delegated to them by the owner which preserves the value of the property, increases earnings, and handles routine tasks. But how does an investor choose a property management company?
In general, property management teams are familiar with the type of property they are managing, charged with routine maintenance, and provide reliable service to the tenant. Finding the right team to manage your property is essential to the success of your real estate investment.
Types of Property Management Explained
Before researching management companies, determine which type of property you have. A general rule of thumb is if you have a property where people live, you have a residential property. If you have a property where people do business such as an office building or retail space, you have commercial property.
Commercial Property Management
Commercial property management teams manage non-residential properties. Real estate that is considered “commercial” includes industrial facilities, office buildings, retail shopping centers, and business parks. These properties can have multiple tenants that share a building and common grounds or a single tenant, such as a large company, which occupies the entire property.
Commercial management companies manage the maintenance and repairs of the property. Maintenance can include changing air filters, replacing lights, and temperature checks and adjustments. Repairs can include scheduling and coordinating necessary HVAC, mechanical, electrical, and plumbing repairs. They also assist with tenant requests and manage on-site projects like tenant improvements and lease renewal construction. A property management team can also coordinate major repairs such as emergency restorations, remediation, and abatements.
Residential Property Management
Residential property management teams manage residential properties. Real estate that is considered “residential” includes houses, condominiums, townhomes, and apartments. These properties are known as residential properties because people reside in them.
Residential management companies manage the tenants, maintenance, and repairs of a property. Maintenance can include changing light bulbs and air filters, lawn care, and annual preventative maintenance. Repairs can include water heater replacement, air conditioning repairs, garage door repair, and small appliance service. A property management team can also monitor for lease infractions, uphold HOA regulations, administer communications from ownership, and manage on-site repair or construction projects.
Factors to Consider for Your Property
You and your property are unique and the needs may vary from other investors. When looking for a management company, consider what your property needs and the type of company you’d like to do business with.
Since every property is different, you might need services that other investors do not need.
Consider the following before hiring a management team:
- Do I need accounting services such as budgeting, payables, or rent collection?
- Does my property require security clearance for all personnel on-site?
- Do I need an on-site maintenance technician or an on-call maintenance technician?
- Will my property need service contracts such as scheduled landscaping, routine air conditioning service, elevator inspection, or annual fire extinguisher inspection?
- Do I need a management company with a pre-existing team of vendors ready to make repairs?
- How is my property different and what are the needs of the building and my tenants to ensure a profitable and successful relationship with a new management team?
Reviews on Google can help you determine what real customers and clients think about the company you’d like working for you. Review them carefully before reaching out. This can help you make a preliminary short list of companies you’d like to work with.
Every company is unique in its own way. If you personally value local and small business, eco-friendliness, veteran employment, social and racial inclusion, honesty and integrity, or community involvement then choosing a company to work with should align with you and your company’s values and goals, too.
Contact Us For a Commercial Management Quote
Pena Property Management is already familiar with the needs of the Dallas market when it comes to weather related emergencies and preparation, the Houston Metroplex when it comes to property needs and readiness, and the Rio Grande Valley when it comes to repairs and regional needs.
If you are ready to increase profitability with a trustworthy property management company, contact us today and we will begin working on your custom commercial property management quote.