Professional property management will make you money
Working with professional property management can protect real estate assets.
By: Randy Mercer, Founding Partner – CRE Consultants
Regardless of product type, professional real estate investors tend to have very consistent goals. Generally speaking, they aim to generate monthly cash flow, maintain and improve the value of properties and sell for a profit in the future.
It may seem simple enough, but it’s not as easy as it sounds. That’s where working with commercial real estate consultants, such as CRE Consultants based in Southwest Florida, becomes a significant advantage for investors.
Perhaps one of the biggest misconceptions about professional property management is that it comes at a high cost to landlords and owners.
In truth, property management isn’t a cost at all.
Like any bill related to your real estate assets, professional property management costs are rolled into an operating expense budget. Ultimately, the expense is reimbursed through tenant rent.
Here are reasons why professional property management is a smart and profitable investment in preserving and increasing value.
1. Cashflow advantages are significant
One major benefit of professional property management is timely rent collection and making sure tenants comply with lease agreements. They also take over monthly financial reporting and tracking income, expenses and future financial forecasting.
2. A great environment equals less turnover
Keeping a property in top condition is a key component of retaining tenants and reducing rollover and vacancy. Professional property management plays a large role in fostering working environments where commercial tenants are happy and thriving.
3. Landlord responsiveness improves
One of the most common complaints among tenants is landlord responsiveness, especially when property owners are not on-site. Professional property management provides rapid response even to critical situations like air-conditioning or water issues requiring immediate attention.
This is an effective way of maintaining stellar landlord and tenant relationships.
4. Maintenance and repairs are expertly orchestrated
Whether it’s a construction project, a renovation or a tenant buildout, it’s essential to know about local building codes and practices. Professional property managers have established relationships with reliable contractors and vendors to ensure work is done efficiently and reliably.
5. There’s a targeted focus on income and expense
Professional property managers are experts in commercial real estate who constantly survey the local market. They take the real-time pulse on each sector’s overall health. Knowing the local market means they can stimulate rent increases and negotiate longer lease renewals at higher rates.
From strategically timing capital expenditures to offset maintenance costs, they’re focused on your building’s bottom line.
6. Enhanced value and stabilized cash flow
Even savvy property owners with multiple portfolios can miss opportunities for added value. The best property managers make actionable recommendations for adding value — and let you know when opportunities are on the table.
While some owners and investors like to “do it all”, partnering with a professional property manager is one of the quickest paths to lock in value and grow your investment. There is no better time than now.
To explore professional property management options email Randy Mercer at randal.mercer@creconsultants.com, or visit https://creconsultants.com.