Investing in property is a great idea. Over the long term, real estate has consistently risen in value. While many people start with a second property and rent it to tenants, you’re likely to find commercial real estate offers more attractive and stable returns.
Naturally, the initial investment is higher, that’s why many people enter the commercial real estate market with partners.
If you’re ready to join the commercial real estate market and take a slice of the $20.7 trillion industry, here’s why you’ll be better off with property managers.
Help You Locate the Right Property
Considering the size of the commercial real estate market it’s not surprising that there are hundreds of opportunities to look at. It can be a minefield to find the right one. Especially when you consider the number of viable properties outside the US.
Big cities in Canada, such as Toronto have an abundance of commercial properties for sale and can be an attractive proposition. After all, you’ll often find the rates and associated costs are cheaper, along with the regulatory requirements.
With such extensive market options, it’s advisable to speak to property managers first. They’ll be able to assist you with which types of property are currently doing well and the best locations.
For example, apartment blocks are currently in high demand by tenants.
They Know the Regulations
A property management firm does one thing; manage properties. That means they are up to date with all the latest rules and regulations.
For a beginner, the amount of rules and regulations can be confusing. Your property management company can handle all these issues for you, leaving you free to focus on what you’re going to do with the returns on your investment.
Finding the Right Tenants
Purchasing a commercial property is only the first step. To make your investment worthwhile you’re going to need a tenant or tenants.
Looking for potential tenants and verifying whether they are genuine or not can be time-consuming. Property management teams already have lists of vetted tenants and can quickly fill your property.
All you have to do is ask.
Even if they haven’t got an existing list, they will have the knowledge, experience, and time to find the best tenants for your building.
A good property manager can even help with your interior design. The style you choose depends on the type of commercial property and what tenants you hope to attract. It’s possible to personalize each apartment without spending an excessive amount of funds.
Handle Marketing
Commercial properties are usually leased for a minimum of five years. That gives some financial security/. However, to ensure you have tenants who are likely to stay with you for five years, you’ll need to appeal to the right target audience and carefully check each one.
It can be difficult to work out which is your target audience and how to appeal to them. That’s where your real estate management team steps in. They are accustomed to speaking to a target audience, refining campaigns, and generally promoting your business.
A good property manager will handle all your marketing for you, it helps to ensure your property is always full. After all, a good property manager has local knowledge which always makes it easier to find the right property and tenant.
Deal With All Issues
If you’ve opted for commercial real estate in another state or country, the last thing you want to do is have to pack up and visit every time there’s an issue. While some issues can be left temporarily, others, such as roof leaks, must be fixed for the sake of safety and your property value.
A property management team can be contacted whenever there is an issue. They’ll be able to identify the issue and take the right steps to fix it. Of course, you’ll be charged for the pleasure, but it’s a lot less hassle than having to visit your property every other day.
Not to mention, if your property isn’t local, it’s a lot cheaper.
Choose the Right One
Choosing the right property manager can be difficult, especially when there are so many options on the market.
It’s best to look at their reputation and how many clients have positive things to say about them. You’ll quickly get an idea of whether they are good at what they do, or not.
Summing Up
While commercial real estate can be a lucrative venture, it’s also a time-consuming and often difficult occupation. Property managers provide the support you need to get your business off the ground.
Over time you can accumulate their knowledge and choose not to use their services anymore. This can be a dangerous approach as rules and regulations change frequently. You could be blindsided.
That’s the real benefit of using a property manager, they remove the stress from being a landlord.
