When it comes to managing a commercial property, choosing the right property management company is crucial. Here are five key factors to consider when selecting a commercial property management company:

1. Experience and Expertise: The first factor to consider when choosing a property management company is their experience and expertise in managing commercial properties. Look for a company with a proven track record of successfully managing properties similar to yours. Also, consider the company’s experience in dealing with tenants, maintenance, financial management, and legal issues.

2. Services Offered: Another important factor to consider is the services offered by the property management company. The company should be able to handle all aspects of managing your property, including tenant screening, rent collection, lease negotiations, maintenance, and repairs. They should also provide regular financial reports and be available to answer any questions or concerns you may have.

3. Communication: Good communication is essential in any business relationship, and it’s no different when it comes to property management. Choose a company that has excellent communication skills and is responsive to your needs. They should keep you updated on the status of your property and promptly address any issues that arise.

4. Reputation: Look for a property management company with a good reputation in the industry. Ask for references and read online reviews from past clients. You can also check with the Better Business Bureau to see if the company has any complaints filed against them.

5. Fees: Finally, consider the fees charged by the property management company. While cost should not be the only factor in your decision, it’s essential to choose a company that offers competitive rates and provides value for your money. Make sure you understand all fees and charges upfront, so there are no surprises later on.

By considering these five key factors when choosing a commercial property management company, you can find a reliable partner to help you manage your property effectively and maximize your returns.

According to The Property Manager’s Guide to Attracting and Retaining Small-Portfolio Investors, a report published by Buildium and Propertyware, 52% of rental owners now identify as intentional investors, an increase of eight percentage points since 2018. Accelerated by the pandemic, the market has shifted from accidental landlords or those who hold onto a property for personal reasons, to those who are looking for income from the start.

There are three typical ways people enter the real estate realm. While the majority buy properties to rent as intentional investors, many stumble into real estate investing and become overwhelmed quickly. Which type of real estate investor are you?

• Intentional Investor: Intentional investors make up 52% of real estate investors. They buy properties with the express intention to rent them out for profit. This type of investor is likely to own multiple rental properties, have rental properties that are consistently profitable, have plans to acquire new properties over the next two years, and identify as a full-time landlord or real estate investor.
• Unintentional Investor: The unintentional investor makes up nearly one-quarter (24%) of all real estate investors. This type of investor has stumbled into a profitable real estate situation either by necessity or as a hobby. The unintentional investor is likely to own single-family rentals, utilize their rental as passive income, have a full-time job that’s unrelated to their rental properties, and see residential rentals as an intelligent investment in 2022.
• Accidental Landlord: The final category of real estate investor is the accidental landlord, coming in at 24% of all investors. This type of investor has become a landlord completely by accident. They are likely to own only one property, rent out a property they purchased originally to live in as a primary residence, inherit property unexpectedly, have no plans to expand their portfolio, and feel overwhelmed.

Across the board, whether intentional, unintentional, or accidental, small-portfolio investors tend to fall into one of four categories. These include DIY landlords, growth-focused investors, distance investors, and profit-conscious investors.

However, being a real estate investor is not always smooth sailing. The top five struggles of real estate investors, as reported by Buildium in their 2022 Small-Portfolio Investor Report, include maintenance and repairs, accounting, bookkeeping, and taxes, finding and working with a property manager, renovations, and legal issues.

Partnering with a professional property management company can be invaluable to all types of real estate investors. Property managers save investors money through their ability to negotiate better contracts with various professionals. They can also offer legal advice, have better technology, access to better quality contractors, act as a local expert for distance investors, and provide freedom from worry.

In conclusion, investing in real estate can be an excellent way to generate passive income and build wealth. However, it’s crucial to plan ahead and educate yourself on the basics of real estate investing and the challenges you may face in the process. Different types of small-portfolio investors face unique struggles, and partnering with a professional property management company can help alleviate stress and ensure your investment is successful.