Once you’re a landlord you are going to have to determine whether you need property management for you commercial real estate property or not. Sometimes a landlord or commercial real estate buyer will manage the property on their own or with a resident manager, but sometimes that isn’t enough. Sometimes you will need property management to maintain high standards at your property.
The reasons you need property management are sometimes different depending on what kind of commercial real estate space you have. Having a property management company is not for everyone. In general, property management is expensive, but for many property owners it can be incredibly worthwhile. Here are 5 reasons you need property management.
The Reasons you Need Property Management
- Multiple properties or rental units
The more properties you own and the more rental spaces per property increases your need for property management.
- You don’t live near the property
This one is huge. If you don’t live near you rental property, having a property management company is invaluable. Imagine if you lived in a different state and something happened at your property that needed immediate attention. What a pain it would be to hop in your car in the middle of the night and drive over. Talk about a pain in the back-side.
- You have limited time
Even if you want to manage your own properties sometimes it isn’t possible. Especially if being a landlord is not your day job. If you are trying to expand your commercial real estate portfolio, arrange financing for renovations or working on other projects, you will need property management to get ahead.
- Not interested in being a hands-on landlord
Sometimes people are passionate about finding great tenants and maintaining their own pristine and safe properties. Others, not so much. Sometimes you will appreciate the investment you made but don’t want to deal with the collecting of the rent, the complaints of tenants or evictions. This could be one of the main reasons you need a property management company. The headache of doing everything yourself.
- You don’t want to be an employer
If you go the route of having a resident manager, you are now an employer. That could turn into a way bigger headache than having someone else take care of the situation in its entirety. Now instead of cutting a check, you are doing payroll. Legal requirements and considerations can lead to a very slippery slope. But a property management company is not an employee, they are an independent contractor.
With a property management company you get the peace of mind that your investment is taken care of, even if you aren’t around. If you have any questions about property management or would like to set up a consultation about your reasons you need property management, we can help. One of the strengths of S&D Realty is our ability to evaluate real estate in terms of highest and best use, feasibility and investment performance. For more information on investing in commercial real estate, don’t hesitate to give us a call at 516-248-6905. We look forward to hearing from you!