I Want To Manage My Own Commercial Property…We Tell You Why You Shouldn’t
Wise investors know that property’s only a game in Monopoly, and maximising your returns means treating your investment obligations as a profession, not a hobby. Going it alone can undermine your bottom line. We tell you why.
1. Vacancies are the killer behind most financial models of commercial property investment. One long voidturns a healthy venture into a stressful and loss-making one. Property managers leverage many years’ worth of contacts, experience and local insight to capture maximum exposure for your asset and lease it quickly. Can you, hand on heart, conduct a comparative market analysis? Are you absolutely sure that you’re not under/over pricing?Can you remain impartial and steer clear of the emotional aspect of your investment? Can you attract, interview and screen quality tenants, while reducing default risk and vacancy time? No? Then you need professional management.
2. Income drives a commercial property investment. Tenants are more likely to pay rent on time when a professional manages the property, because processes are in place to enforce late penalties, serve legal notices, initiate a rent review and start forfeiture proceedings - and you don’t have to confront tenants on tough issues like money.
3. Owning a property and having it tenanted carries risk.Legislation changes frequently and must be adhered to. Legal documentation requires effective creation and storage. Potential minefields exist at every juncture. An experiencedproperty manager with up-to-the-minute understanding of the law and software solutions to ensure compliance minimises the risk.And avoiding one court action will pay for any property manager’s fees many times over.
4. Time, commitment and impeccable organization provide the platform for investment out performance.Regular inspections, health and safety checks, routine visits, coordinating repair issues, collecting rent and outgoings, daily monitoring for rental arrears, paying bills, budgeting, lease administration, preparing monthly accounting reports and developing a rapport with the tenants - how will you fit in the day job? Investment properties should be profitable, they shouldn’t be hard work. A property manager takes care of the nitty-gritty, so you don’t have to.