1. Understand local lawsCommercial properties are subject to permit and zoning laws which differ from state to state, and often county to county. In addition, there are often specific incentives for new developers to entice new business into the area. Downtown Las Vegas is an excellent example of this, where incentives are afforded to those who bring in new business and/or neighborhoods, to enhance urban revitalization and create future growth. Knowledgeable local property management companies will guide investors through area specifics, ensuring that potential costly mistakes are avoided and incentive opportunities maximized.
2. Use Technology for Real-Time UpdatesOwning commercial properties that are located in a different state, or country, often limits an investor access to specific and timely property “health” updates. If there are delays in payments for example, or any unexpected expenses, investors need to be sure that their chosen property management firm will provide financial and operational updates for owner review. With the right, cutting edge, information systems in place, investors can also be kept abreast of granular information in real time, with updates accessible online from anywhere in the world, at any time.
3. Keep properties safeInvestors need to ensure that their ownership risk is mitigated. This requires consistent routine property maintenance, physical property inspections and code adherence evaluation. Property management companies offer a range of services to ensure that required safety standards are met, that all local rules and regulations are observed, and that emergency procedures are robust and current. In addition, property management firms can set up security methods and processes that are tailored to the specific business need.
4. Maintain local relationshipsMaintenance, repairs, and upgrades are a significant component of property ownership. Timely attention to these areas preserves the overall value of investments, however, finding reliable local vendors and contractors can often be a time consuming process. In addition, attempting to manage this process remotely may even result in the appointment of unethical or uninsured vendors, and this is ultimately a costly scenario for owners. By partnering with local property management, however, owners can immediately gain access to a trusted and established network of licensed, bonded and insured contractors who have already passed the tests of pricing and quality. An additional benefit is that property management companies are often able to negotiate discounts based on their historical relationships and property portfolio, which then translates to significant cost benefits for investors.
It makes good business sense for investors, particularly in a remote scenario, to partner with trusted local expertise in the property management field, to ensure minimization of risk and maximization of investment opportunity.