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A commercial property is, as the name implies, used for commercial purposes to generate financial profits for the owner through lease or business. Managing a commercial property is a multi-faceted and complicated process which needs constant attention, an eye for detail and a great deal of business savvy, the reasons why most property developers and commercial property owners are outsourcing these functions from professionals, that is, a commercial property management company. In a nutshell, this is what the experts do:
Take care of tenants. Property managers advertise vacant leasing spaces, screen potential tenants and then lease out to businesses that pose the least amount of risk to the owners at the best rates possible. Risk is assessed in terms of company reputation, history in the country, timely payment potential, etc. Subsequently, the commercial property manager collects rent on time. He also has, in case of a breach of contract or any other disputes, the duty to evict a tenant according to relevant rules and regulations. Professional property management companies have a good record of retaining tenants.
Legalities and paperwork. The commercial property manager prepares an air-tight tenancy contract that acts as a guarantee against future legal disputes. He also generates monthly, bi-yearly and/or annual reports that detail income and expense statements, tenancy contract details, tenant details and any other relevant information.
Property survey. The commercial property manager conducts periodic surveys of the property to ensure that all maintenance works are being taken care of, and both the tenant and the owner are keeping up with their respective duties and responsibilities.
Market know-how. The only constant when it comes to rental rates is change. The property manager keeps himself abreast of the market dynamics and ensures properties under his supervision are not being shortchanged.
• A property manager ensures properties are not shortchanged
• He ensures maintenance works are being taken care of regularly
• He screens potential tenants, and prepares air-tight contracts
Source: Bushra Hameduddin, Special to Classifieds
The writer is a freelancer