4 Tips in Becoming a DIY Commercial Property Manager
According to industry experts, the commercial property market is experiencing a steady growth in Jacksonville, Florida. With industrial vacancy remaining below 3%, investors are noticing the market’s strong fundamentals, with over 12% of inventory being turned over within the past year. Property owners are also experiencing growth in rent gains, with Downtown Northbank enjoying particularly large rent gains, in upwards of $20 per square foot in the office market alone.
With these numbers in mind, now more than ever might be a good idea to turn some of your idle assets into properties for rent. Just remember that being a do-it-yourself property owner carries some heavy responsibilities, aside from the great benefits of having a dependable source of passive income.
In this article, we will share four points to remember to succeed in the commercial property management business:
Be a proactive property owner
While it’s true that most businesses will stay in a location as long as possible, it’s still rather common to see businesses close shop because of dissatisfaction with the rented space. If you want to avoid such situations, it’s in your best interest––as an owner––to ensure that your tenants, including their employees, have a positive experience. Being a proactive property manager by conducting regular inspections, performing maintenance, and being responsive to queries will go a long way in ensuring that they remain satisfied.
However, businesses do come and go all the time. Sometimes, the location does not work for them, or the business itself has to stop operations for whatever reason that is not always connected to you. In this case, you will have to be prepared to look for new tenants to fill the vacancy, which is where a good grasp of fundamental marketing principles will be helpful.
Keep a list of reliable vendors
Unless you plan to perform all the repairs and maintenance work yourself, you should keep a list of dependable contractors who will immediately respond to HVAC, plumbing, electrical, and even medical emergencies. This is especially important if you are managing several tenants, all of which may experience issues from time to time.
Do your due diligence
As a property owner, it is in your best interest to do thorough background checks on your potential tenants. This is not only to ensure that they are able to pay rent in a timely manner but also to ensure that your premises are not going to be used in ways that you do not intend them to be. To start, the process should include criminal and credit background checks, previous evictions, and pertinent documents about their business.
Keep your books in order
It’s important to keep your books in order not only to keep track of your expenses but also to protect you in cases of a rent dispute. If you have no experience in accounting, it would be a good idea to hire a bookkeeper.
Sometimes, the term “passive income” can be a bit of a misnomer. Many people make the mistake of thinking that being a property owner is all about collecting rent when it can actually be lots of work. If all the tasks involved become overwhelming, you can always seek the services of a property management company to handle it for you.
Quest Real Estate is a property management company in Jacksonville, FL. We are excited to introduce our Do-It-Yourself Property Management service, which allows you more control over the management of your properties, while still taking advantage of our network and expertise. Get in touch with us today to see how we can help!