If you’re a property manager, you probably started off in the residential market.
This is the usual route, but many property managers want to dive into the world of commercial property management. However, there are many differences between the two professions. There may even be new qualifications that you need to get, and laws to understand and follow.
So the question is, how to become a property manager for those properties? You may also want to know, what does a property manager actually do in a commercial building?
If you have questions, keep reading. This guide will explain the five differences between a residential and commercial property manager.
There are more expenses attached to a commercial building agreement, and the tenant will shoulder these. The usual expenses are the NNN or three nets. They include maintenance, insurance, and property taxes.
Furthermore, as a commercial property manager (PM) you’ll deal with fewer tenants. There’s typically only one owner per building. And you’ll be interacting with businesses, not individuals.
Commercial leases are often longer and more complicated than residential rental agreements. For example, they may have annual rent reviews or prices attached to a fixed index.
Often a tenant will invest in fitting out their space with custom alterations. This investment only makes sense if a business is going to be in the property long-term.
In a residential property, a maintenance issue can be a quick fix. A call to a contractor who interacts with the tenant and you’re done.
With commercial buildings, it’s often necessary and required by law to have an on-site manager.
Additionally, there should be a system where tenants and the PM can track work tasks. Tenants need to be kept updated on when the work will be done and when completion is expected.
In general, it’s easier to manage single-family homes than a large commercial property. Where becoming certified may have been optional as a residential PM, it’s more important for commercial property management.
The usual route is to become a Certified Property Manager (CPM). The designation is highly respected in the profession It’s recommended you look into getting it if you decide to make the switch to commercial properties.
You’ll be pleasantly surprised to hear that commercial property management carries less responsibility for you.
The tenants you’ll deal shoulder a greater responsibility than residential ones. For a residential tenant, you have to maintain a habitable residence, and there are strict laws on what that means. The law also favors tenants in case of eviction.
For a commercial property manager, the scope of responsibilities is relatively lower. The buildings are generally used during the daytime. This means no late night calls about noisy neighbors or leaking pipes.
Hopefully, you now understand if the life of a commercial property manager is right for you.
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