If you’re like a lot of other shopping center landlords, when you purchased your retail shopping center, you had dollar $igns in your eyes.
And who could blame you, right?
Active, profitable tenants paying high-dollar rent every month. And those tenants cover ALL of your property expenses as part of their NNN charges…
- Property taxes (your biggest expenses) – Check!
- Insurance – Check!
- Property upkeep and maintenance – Check!
And if you don’t have a loan, those tasty rents are PURE profit. Even if you do have a loan, you’re likely still banking cash every month.
Sounds like a pretty UNBEATABLE deal.
But then you dove into actual day-to-day management of your shopping center (an aspect you didn’t necessarily think about beforehand). It proved nothing short of a RUDE AWAKENING.
You realized, much to your distress, managing your shopping center was a real slog.
Turns out, property management is a relentless train of big picture strategic decisions and finite details that demand constant attention. And demands never end.
You discovered, the hard way, maintaining your shopping center investment is another full time job.
And that’s the LAST thing an investment should be.
But what if we told you there’s an alternative?
What if we told you it’s possible to convert your shopping center into an investment that generates PASSIVE INCOME (the kind of asset every investor agrees is the pinnacle of financial success).
Well, it’s true. Your shopping center CAN be EXACTLY that kind of investment.
How? Three words: Professional Property Management.
Here’s How it Works
When you hire a professional property management company, they handle the difficult, time consuming, and seemingly arbitrary (but legally require) tasks for you…
Overseeing Day-to-Day Management
Maintenance issues…“The toilet’s overflowing, and my unit’s flooding!” … “The AC quit and the sweltering heats driving all my customers away”)
Tenant “emergencies”… (“The dollar store employees are taking up ALL the customer parking” … “the market is selling sandwiches. But we have an EXCLUSIVE!”)
And the like are among the MOST time consuming aspects of shopping center property management.
With professional management, your property manager is “on call” 24-7 to field calls, requests, complaints and so-called “emergencies.” They handle tenant issues, field calls, organized vendors and moderate tenant disputes so you don’t have to have to (protecting your precious free time).
Staying on Top of Maintenance
Overseeing sweeping, trash removal, and general upkeep requires constant attention. Did the vendor actually show up? Did they do a good job? Are the tenant’s service complaints legitimate?
And when it comes to large scale projects – parking lot repaving and slurry, roof replacement, ADA compliance upgrades, and the like – knowing when to act or who to hire is another big challenge.
Whether it’s daily upkeep or major maintenance, your property manager is on top of it.
Your manager will monitor vendor services, assess quality and performance, and address tenant concerns.
More than likely when a big maintenance project is necessary, you’re manager will advise you. And they can make recommendations for vendors and gather project bids.
Keeping Up-To-Date With Finances and Accounting
Collecting rents, paying bills, and making sure everything is properly recorded and documented is an enormously time consuming proposition.
A professional management company employs an accounting department dedicating to handling all of these tasks. Moreover, the do so in a legally complainant manner, in accordance with local, state and IRS rules and regulations.
Staying Abreast of Condition in Your Marketplace
When a tenant vacates a space, how much do you much do you list the vacancy for? When it’s time to renew a lease, what’s “fair marketing value?”
Without a strong knowledge of your local marketplace, these are tough questions to answer.
Fortunately, your property manager monitors rental rates and the retail use trends in your area. They can help both determine the optimal lease rate, and identify the ideal tenant for your space.
Done with the trials and tribulations of managing your shopping center?
Do you want to agonize over these difficult and time consuming tasks? Or would rather hand them over to a qualified professional? (And turn your shopping center into an asset that generates PASSIVE INCOME.)
Click here to check out CBM’s services page and find out how professional property management can maximize your shopping centers passive income potential.