Owning commercial property is usually a good financial investment provided you have responsible tenants. However, it also involves good management which entails factors such as money, state and and local laws, and safety concerns. If you’re considering buying commercial property, here are some of the responsibilities you’ll need to consider.
Physical maintenance of your commercial real estate is one of your main jobs. You’ll need to regularly keep up both the inside and exterior of your properties. Some of the main duties involved in the physical maintenance of commercial properties include:
- Caring for repairs
- Electricity and heating.
You’ll also have to be sure building regulations and other rules are enforced. Other maintenance tasks include:
- Scheduling or conducting a physical inspection, as well as checking to ensure work is properly done and has followed building codes
- Negotiating contracts and supervising contractors
- Making recommendations for improvements in common areas
Financial management is another primary part of managing commercial properties. For example, you’re responsible for collecting and recording rent payments and implementing possible collection procedures when tenants fail to make rent payments
You’re in charge for accounting and it’s your job to prepare financial statements and to get bids for financial expenses such as:
- Preparing 1099’s for end-of-year accounting
- Personal property reports
Considerations and Warnings
- In case of emergencies, it helps to have a 24-hour answering service.
- Your community’s chamber of commerce can typically tell you what kind of insurance is needed for your commercial property
- It’s critical that your tenants pay their rent on time and that they’re consistent. If they’re unssatisfied, you need to solve their issues as soon as possible
The job of managing commercial properties is generally overwhelming for most commercial real estate owners. That’s why many of them leave commercial property management to professionals who can effectively carry out all the tasks linked to owning commercial real estate.
When you’re ready to buy commercial property don’t hesitate to contact Greenberg & Company. We’re a trusted real estate firm that can help you with all your real estate needs.