Owners of small buildings often believe that professional property management is only for large, downtown office buildings and not for them. However, unless you have the time and experience to handle day-to-day building and tenant issues, you may be better off –both in terms of your budget and quality of life – hiring a property manager.
Property management is time consuming.
Even if you have all of the technical, legal and administrative skills required to oversee your property, or you’re spreading the work among members of a volunteer board, you usually have other commitments – like a day job. A good property management company is on call 24/7 to attend to issues, manage arrears, screen and find good tenants, and respond to emergencies. And when the property manager takes a vacation, their position is covered off by other qualified professionals.
Monthly accounting and operating reports keep you on track.
Your property manager gives you monthly reports that let you know if your building is on track in terms of revenue and expenses. They prepare maintenance schedules that ensure your operating systems stay in good shape, and they help you plan for future maintenance projects.
If you don’t have time to produce regular financial reports or make inspections, you may be hit with an unpleasant surprise. Like any substantial asset, a building needs constant monitoring to ensure it’s performing at peak efficiency. Even beyond that, if your property is ever audited, you approach the bank for a loan, or you want to sell the building, you’ll need a history of accurate records.
Up-to-date contracts help you control costs and maximize profits.
Property managers organize and review all of your contracts on a regular basis. They ensure that your rents are at market value, check for automatic renewal provisions that may lock you into unwanted, long-term contracts, and ensure that all of your different building insurances are adequate and up-to-date. They will shop rates for you, and can often obtain bulk rates by pooling buildings together.
Qualified and bonded staff do the job right.
Property managers hire qualified staff to perform all of your maintenance, from janitorial duties, to heating and plumbing, to landscaping. What’s more, they inspect the work and follow up on any deficiencies. They also supervise regular on-site staff: hiring and firing, training, and arranging for vacation relief. Sadly, we’ve had owners come to us after the fact who have left their property in the hands of unsupervised caretakers and been defrauded, or suffered theft of property and/or time.
A good property management company will tailor the solution to your needs.
If you own a small building, you may want to do some tasks yourself, or hire service providers you’ve used for years. With the right company, that arrangement is possible. Professional property management doesn’t have to be an all-or-nothing arrangement.
At Transpacific, we know that every property owner has different needs and goals. We can provide just the services you require, or we can provide intensive consulting and management services that will ensure your business runs smoothly while you do other things.
Want to learn more? Please give us a call at 604 873 8591.
Visit the Learning Centre for more interviews with Rod Fram, President, Transpacific Realty Advisors.