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Tuesday, October 29, 2013

Property Management is an 80/20 Proposition



Most commercial tenants think of property management and say “thank goodness the landlord takes care of that!”  That is largely true but to think it is entirely so is to put your financial bottom line into the hands of at best a well-intentioned stranger and at worst a totally indifferent one.  While it may be true that the tenant in a large class A office tower does not have to perform janitorial services or maintain the building’s heating and air conditioning systems, they do assume some repair responsibilities inside of their premises and have important administrative duties relating to property management.

Think about it: for every bill you receive, whose responsibility is it to review it for accuracy and actually cut the check?  While there is not a lot of review required when you get a utility or cable TV bill at home, but what about that annual operating expense reconciliation bill you get from the landlord?  Does it accurately reflect the terms of the lease; in particular, the special operating expense lease provisions your real estate broker negotiated on your behalf?

80% of property management is shouldered by the landlord, but 20% is the tenant looking out for its own interests.  Who is looking out for yours?

2 comments:

  1. You are absolutely right tenants don't look out for repairing or any modification for the rental home with their own wish. So dealing with a property management solution is a wise decision.

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  2. When you very own multiple properties, you'll have to have many additional help. It is not likely that you could deal with every little thing all on your own if you have a lot of work to get accomplished all over the metropolis. Operations providers be an aid to take care of all of your current space leases, besides one particular. If the book must be accumulated or even the actual tenants have to have help with a challenge, presently there will probably be a person presently there to help. This kind of increases the potential for tenants being as well as having to pay. find property records

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