Why You Should Hire A Property Manager BEFORE You Invest

May 20, 2020

Why You Should Hire A Property Manager While Investing  – Caton Commercial

The usual way that a property management company comes on the scene is when the owner of a building makes a contact. Often the owner has just acquired the property through purchase or exchange, then looks for a manager. Any questions about Property Management, contact Caton Commercial today. 

However, if you are about to acquire an income property, consider contacting a property management company in advance. Their ability to estimate income and expenses and their keen knowledge of the market make a property manager a valuable asset during the pre-acquisition process. The property manager has the background necessary to provide significant assistance in determining both the location, desirability, and economic feasibility of a property. Learn more about how to hire a property manager below and why it’s a good idea.

Why Hire a Property Manager? Property Inspection And Evaluation

When evaluating a property, have a property manager perform a comprehensive inspection of the physical property, thoroughly review current leases and past maintenance records, and, when appropriate, talk with the on-site staff, and current tenants and neighbors.

Preliminary market analyses and pro formas should be completed during the pre-acquisition stage to determine the property’s operating costs and to project possible investment returns. These analyses will help establish whether the property will perform according to the owner’s investment objectives, or whether the property is too risky for acquisition.

caton commercial Why You Should Hire A Property Manager BEFORE You Invest

Analyze And Maximize Rent Structure

When the property is acquired, the property manager can determine what can be done with the rent structure. The goal will be to increase the rents to market levels and maximize value. Tenants with leases can not be given rent increases if their leases prohibit them, but the rent for vacant space or for the property with expiring leases may be increased.

Today’s investors in commercial real estate must have a grasp of market conditions and investors need assurance about the true condition of the property and its potential. With increased competition, the market place is becoming more complicated. As your professional commercial real estate management advisors, we are in the position to help you in making a more educated decision in real estate transactions. With this kind of information when considering a commercial property, planning is better and there is less chance for error.

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