A property management team doesn’t just look after the upkeep of your building. That role is crucial, but the right team has skills beyond maintenance and rent collection – they’re your partners in growth. Look for property management professionals that can handle these five tasks on your behalf.
1) Minimizing Costs
The right property management team will have a network of service providers (think janitorial services, landscapers, etc.) that they can tap into for common area maintenance needs at the lowest possible price. That means less overhead for you where your share of common areas is concerned. A property manager should also be familiar with local property taxes, appraisal values and other factors affecting your recorded property value, which could potentially lower your tax burden. Between these two avenues, a property management team can potentially free up money that you can then use on improving the property or keeping tenant rent competitive.
2) Improving Retention Rates
A hands-on property manager will build relationships with tenants, listening to their needs and spotting potential problems before they occur. The right manager can also recommend strategic improvements to building systems, as well as aesthetic enhancements that will keep your property looking fresh and modern. Don’t underestimate the value of that kind of hands-on experience – the right improvements could significantly improve your net operating income and ability to attract and retain tenants, two keys to success.
3) Recommending Growth Strategies
In addition to just managing your existing property, a diverse property management team should be able to spot places for you to grow your business. One Pivot client, for example, was able to subdivide its surplus real estate in Iowa City into spaces for three tenants, turning 10,000 square feet the client no longer needed into a new income stream. Similar to their role with existing tenants, the property management team can also assist with building upgrades aimed at attracting new tenants, not just retaining the current ones.
4) Ensuring Compliance
Your property management team should have a handle on all local, county, state and federal laws that apply to your property, as well as the relevant building codes and ensure any required inspections or upgrades are done on time. For example, you’re likely required to test your building’s fire detection and alarm systems on a prescribed schedule; your property management experts will make sure that test is done when it should be and document the results so that you’re never found non-compliant.
5) Crunching the Numbers
Property management isn’t just about collecting rent from tenants – it’s also about making sure your rent is competitive with other similar buildings in the area via periodic market rent analysis. Your property management team should also create and maintain your property’s budget with realistic figures for upkeep and improvements, as well as update you on the status of the budget so you can make adjustments if needed.
Your building belongs in the hands of professionals who will maximize its value while minimizing its cost to you. Bring the right team on board and chart your course to bigger profits and smarter management strategies.