Managing a commercial property means dealing with a ton of problems. Here are 10 that you should do your best to avoid.
Too Low Rents
A lot of property owners make the mistake of setting their rental rates too low. Below market rents aren’t going to do you any good. Hire the services of an experienced commercial real estate management firm so you can get help on setting the right amount for your rents.
Hidden Fees
Some firms might have hidden fees that could make it harder for you to absorb the profits from your rental properties. Find a commercial real estate investing company that is upfront with its charges, so you won’t need to worry about hidden costs.
Mixed Messages
A good management firm will want to assign you to a contact, so someone can stay on top of your account and can answer your questions every time. If that isn’t the case, then look elsewhere.
Poor Communication
Timely communication is essential. If there’s a problem with the units or tenants, open communication lines between you and your management firm can resolve the issue with ease.
Lack of Reporting
The firm should provide you regular reports. If there any deviations from the usual mode of reporting, that could be a red flag. Failure to submit those reports might mean you’ll need to look for a different management company.
Being Overcharged
The quality of your housing, location of the property and the condition of the current rental as well as housing market all affect property management costs. The local competition for management services along with the monthly rent of your home are also factors. Consider all these and evaluate if you’re being overcharged.
High Maintenance Costs
A home that requires a lot of maintenance is more expensive to manage. However, if the management firm can’t justify the maintenance costs, you might be dealing with dishonest property managers. Find out.
Zero Inspections
Inspections should be carried out regularly. If your manager says they are, but you find no proof of that when you check for yourself, then it might be time to hire someone else.
Placing Bad Tenants
Property managers should check the financial capability and background of each tenant. If you’ve got too many problem tenants, your management firm might not be doing its job.
No Owner Mindset
If the property manager doesn’t take the time to understand the job and tenants, then you’ll be better off finding someone who can achieve an owner mindset and care for your property like it was his or her own.
Prevent these problems by hiring the right firm. For trusted residential and commercial real estate management in Phoenix, contact Every Investments Realty.