What Are Commercial Property Managers Responsible For?
11 Responsibilities of commercial property managers.
A property manager for a commercial space has quite a few different responsibilities. Commercial properties vary in nature, but a manager for these areas still has a fairly similar set of jobs to do. Generally, a commercial property is defined as a place where renters pay a landlord to either live or conduct business. Commercial properties include retail and apartments, as well as businesses providing services. As a rule, you can expect commercial property managers to do much work with renters.
An owner hires a commercial property manager when s/he wishes to outsource the day-to-day work of dealing with renters and the property. The manager will thus take care of the property. S/he will handle problems between renters and other renters, as well as the landlord. Finally, the manager will ensure everything is in accordance with the law.
1. Property maintenance
Taking care of the property is one of the main responsibilities of a commercial property manager. This job ensures that the property stays in good condition and is safe. The job includes not only making sure that the property itself retains its high quality. A manager must also make sure renters are observing occupancy laws such as the number of people and the cleanliness of a space. In some climates, maintenance also includes snow removal, flood mitigation, and fixing storm damage.
Of course, nearly everything a property manager does is tenant-related. However, the jobs that s/he must do specifically for and regarding tenants can be broken down into a few different and important categories.
One could argue that this is actually 3 separate responsibilities. The property manager must set, collect, and adjust rent. Collecting rent is arguably the main responsibility of any landlord. Without rental income, there is no budget to maintain the property. A property manager must set up a system to collect rent, such as a website for paying or simply and address to send checks. Also, they must include deadlines as well as punishments for late payments. Finally, s/he needs to have some system in place to know who has paid rent and when.
A good property manager will also need to know the market to set rental rates competitively. This may include increasing or decreasing rent according to property values.
3. Tenant screening
Before a tenant can move into a commercial property, the manager must perform some due diligence. This can include a credit check, employment confirmation, past work experience, and more. Screening is done to prevent frequent tenant turnover.
4. Managing tenant turnover
Regardless of how good the screening is and how favorable the property is, there will be some tenant turnover. It is the property manager’s job to ensure a smooth transition of one tenant out of the property and the next one into it. This means having a rental agreement with clear moving in and out dates. It also means ensuring the apartment is clean, safe, and ready for the next tenant to move in.
5. Managing tenant complaints
When tenants complain, it’s the property manager who gets to figure out a solution. It could be a broken vending machine in the building, or an apartment having loud parties. Either way, it’s the property manager’s job to listen to complaints from tenants, and solve them. These complaints may usually be banal, but they also may involve handling emergencies. If tenants lodge a complaint about an unsafe part of the property that goes ignored, someone could be hurt or killed. That accident would then be the property manager’s fault.
6. Bringing in new tenants
Property managers, especially in residential buildings, are expected to bring in new renters. This means s/he should know the basics of marketing a property. This involves a bit of everything. The job involves keeping the property clean, well-kept, and attractive, advertising, a setting a competitive rental price.
7. Landlord-tenant law management
The property manager is responsible for knowing the latest laws for landlords and tenants. S/he must make sure that the tenants know and abide these laws as well. Laws that are important include lease contracts, property safety standards, and the laws regarding rent and complaints. Handling tenants who violate the laws is also a property manager’s job.
8. Managing the budget
Collecting rent isn’t the only thing the property manager does with money. S/he must balance the income with the expenses. They also have to spend money on maintenance, security, taxes, and insurance. Budget management is the main factor deciding whether a commercial property stays in business or not.
9. Building security
This can be as simple as making sure that each door has a working lock and each tenant has a working key. It can also involve managing a security company, and other built-in security measures.
General supervision of the other workers at a property is another responsibility.
10. Supervising employees at the building
A property manager’s job is also the monitoring of building employees. Security, maintenance contractors, landscapers, and more are all under the supervision of the property manager. The property manager has to ensure they are doing their jobs professionally, while legally adhering to their contracts.
11. Vendor management
A good property manager needs to network. S/he will require an extensive network of suppliers, contractors, and tradesmen. This ensures the property can be maintained and supplied properly at all times. Even the most dedicated manager won’t have time to perform all renovations by hand.
For concrete details on a commercial property manager’s responsibilities, take a look at this job description.
Why hire a property manager?
Hopefully, after reading this, you can see the value in having a good property manager. Their job is to do the everyday stuff of building management that you, the owner, don’t have time or skill to do. At Reliable Paving, we focus on asphalt paving, ADA compliance, asphalt repairs, maintenance, and seal coating. We know how valuable it is to make sure your property is in good shape. An ounce of prevention is worth a pound of cure. We are more than just paving contractors, feel free to contact us for advice on how to manage your property.