In a prior post, we addressed our #1 most frequently asked question: How Much Does Property Management Cost?
Which brings us to our second most frequently asked question: What Services Does Property Management Include?
This is a GREAT question! And obviously, key to any landlord’s decision when considering hiring a property management company to oversee their portfolio.
So, to answer this all-important, burning question, here are the 7 Primary Services Retail Property Management Services includes:
At CBM, we employ a dedicated accounting department and use specialized property management-specific software to monitor and track all aspects of Accounts Payable (AP), Accounts Receivable (AR) and Common Area Maintenance Reconciliation for our entire management portfolio.
Software platform – We use a property management software platform called Skyline, which is specifically design for commercial retail properties.
Accounts Payable – Our AP services include paying, recording, and cataloging all utility bills, vendor invoices, mortgages, and property taxes. At the end of the year, just hand your CPA our General ledger to provide a complete property accounting!
Accounts Receivable – Our AR services include receiving and depositing monthly rents and Common Area Maintenance (CAM) payments. Additionally, to make these payments, most of our tenants use an automated online bill pay service (ClickPay.com) that debits funds from their bank account and transfers them directly into the property’s trust account.
Common Area Maintenance Reconciliation – Our accounting department conducts Common Area Maintenance Reconciliations, ensuring tenants on Triple Net (NNN) leases are paying their proper share of Common Area Maintenance (CAM) fees.
CBM property managers visit the sites they manage on regular basis with detial reprots that include photos communicated electronically. These visitations serve several purposes:
Monitor property condition – Managers ensure the property is in good physical condition and free of any damage or hazards that may cause accidents and lead to lawsuits. Additionally, managers monitor the property as a whole, and take note of any larger issues that may require maintenance – HVAC systems, roof, building façade + structure, parking lot, sidewalks + curbs, etc…
Confirm + evaluate vendor services – Managers ensure vendors are not only performing the services for which they have been contracted, but executing those services at a high level.
Develop a rapport with tenants – Managers make themselves visible to tenants onsite, both to establish authority at the property as an agent of the landlord, and to allow tenants the opportunity to voice concerns and make complaints.
Tenant Relations Management
Managing tenant issues is a never-ending and thankless task. Tenants gripe and complain. Tenants have disputes and conflicts (with one another and landlords). And tenants ask for breaks and reductions in rent and CAM payment, often accompanied by hardship pleas (whether legitimate or not). Meanwhile, dealing with this relentless stream of demands is exhausting and often emotionally draining.
To mitigate this drudgery, property managers step in to create a buffer between landlords and tenants. Managers fields tenant requests and report all communications to landlords. Landlords are then free to make carefully considered decisions, without pressure from emotionally overwrought or manipulative tenants.
Ultimately, managers enforce lease terms, carefully balancing landlord rights and tenant concerns. In short, exercising a firm but fair hand.
To ensure your property remains in peak physical condition, property managers closely monitor vendor services to confirm consistent and high caliber performance.
As part of site visitations, managers verify that sweeping + general cleaning, trash removal, landscaping, and other Common Area Maintenance task are being executed. And executed with careful attention to detail.
Additionally, if a vendor fails to perform a contracted service, performs inconsistently, or performs poorly, the manager will hold that vendor accountable. And if the vendor fails to improve, the manager will terminate their services and hire a replacement provider.
Finally, if a vendor’s fees increase while their level of service declines, a manager will source alternative providers, solicit bids, and make recommendations as to which alternative makes the most sense for the property.
Over time, as a property ages, wear-and-tear is unavoidable. Eventually, building exteriors + facades, roofs, HVAC systems, parking lots, sidewalks + curbs, etc… all need to be replaced.
Obviously, this is a Herculean task that involves identifying contractors, soliciting bids, selecting a suitable vendor, and overseeing the project.
Now, a property manager is by no means a general contractor. And possesses neither the expertise nor legal authorization to act as one.
But your manager can help you…
== > Source contractors for various construction projects
== > Solicit construction bids
== > Advise you on the pros and cons of each option
== > And interface with your contractor of choice, acting as your agent in monitoring the construction process
Lease Assignments + Subleases
In many cases, tenants come and go before the term of their lease is fulfilled. It’s just the reality of the retail strip center world.
Of course, to vacate before a lease term has expired, a tenant must “assign” their lease or or sublease their space. And while not quite as difficult as executing a brand-new lease, assigning a lease is still an involved process that requires fully qualifying a replacement tenant.
Managers undertake this qualifying process, conforming prospective replacement tenant’s use-type acceptability, verifying their experience and business ownership track record, and determining their overall financial fitness. Ultimately, managers strive to ensure the replacement tenant will meet the vacating tenant’s financial responsibilities.
Whether lease options are in place or an initial lease is simply expiring, tracking and executing lease renewals is an integral part of maximizing a shopping center’s profitability.
To ensure lease options + lease renewals are handled accordingly, managers…
== > Keep landlords appraised of approaching renewal dates
== > Update landlords on tenant decisions to exercise options or vacate following lease expirations
== > Advise landlords on current market rents to negotiate competitively price renewal agreements
== > And assist landlords in negotiating financially beneficial lease agreements
And These Are Just a Few of the Core Services Property Management Provides…
For more information, visit our Property Management Services page at cbm1.com/propertymanagement