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Early in your commercial real estate investing career, managing your first handful of properties probably makes sense. However, as your portfolio grows, it is vital to consider hiring a property manager. Professional property managers help manage the day-to-day operations of your properties, from finding tenants to keeping up with routine maintenance. These dedicated professionals are essential for various reasons; keep reading to learn more about how they can increase the success of your investments.

Increased Profits

Many investors shy away from hiring a property manager due to the cost of adding another professional to their team. However, a good property manager almost always provides a fantastic return on investment. With the increased care they can offer your properties, you will have fewer vacancy periods, optimized rental rates, and fewer repairs to handle. In the long run, this leads to increased profits.

Legal Compliance

Leasing a property requires compliance with a multitude of local and state laws. Tenant discrimination, eviction processes, and more must be handled carefully. One minor mistake can lead to a costly lawsuit and a damaged reputation. Thankfully, professional property managers are typically highly proficient in understanding local property laws. This minimizes headaches for investors and the chances of accidentally violating local regulations.

Saved Time

Managing commercial real estate properties is time-consuming. From hunting down tenants to managing maintenance requests and other communications, it’s easy to get bogged down in administrative tasks. Hiring a property manager dedicated to these kinds of tasks frees up a substantial amount of time for investors to focus on hunting down new properties for their portfolio and executing other strategic plans.

Positive Vendor Relationships

Handymen, contractors, and other vendors are key players for commercial real estate investors. When emergency situations arise, having a reliable network of vendors who can respond quickly makes a huge difference. Property managers are great at managing these relationships and ensuring each property gets the high-quality care it needs to stay functional in the long run.

Better Tenants

Finally, having a dedicated property manager can help investors secure more reliable tenants. They are skilled at screening out tenants with a bad rental history and can often increase the pool of applicants through thorough marketing and networking endeavors. This means less chance of evictions, longer leases, and shorter vacancy periods.

While property managers are an added cost, they clearly provide extensive benefits. Most investors do not want to spend their days fielding tenant calls or scheduling maintenance. Good property managers ensure these crucial tasks get the attention they need and typically increase profits over time thanks to their care and attention. If you don’t already have a property manager for your portfolio, do some research and consider adding someone to your team.

Based in Alexandria, Louisiana, Justin Giallonardo is a skilled commercial real estate and construction professional, a dedicated community member, and a loving family man.