Arguments Against Commercial Property Management

If you are in the business of commercial property management or are considering hiring one, you should know about the arguments against commercial property management. Many property owners choose to do it themselves in order to save money. However, there are drawbacks to this. Other drawbacks include:o How much time the owner has to spend
o How choosing not to lease someone can be seen as a reason to take legal action
o Having all of the tools needed such as background checks, credit checks, and eviction forms
o The cost of staff not being cost effectiveCost-effectiveness With StaffOne of the ways that a property management company saves money is by having multiple clients and properties. Basically, it is cheaper to have one cleaning employee that services 10 buildings than a single employee that services one building. This cost is passed on to the property owner. Cleaning is not the only staff position that you will need to have a successful business. You’ll also need someone to always answer the phones 24/7. In addition to day to day operations, you’ll also need a lawyer and an accountant. As you can see, having a single property that you manage your self is going to cost you a lot more money than hiring a property manager.Understanding FeesFor many of us, our time is valuable. An important question to ask is – how much is your time worth? Is your time worth $9.00 per hour? If it is, then you are going to be happy being the sole employee of a commercial property. However, if you are worth more than that per hour, you may find a commercial property management company is reasonable. The company will help you to determine the rent amount that you will charge based on their fees. Typically, they are between 5% and 50% depending on the area of the country. Of course, this is heavily dependent upon services that they offer.Avoiding Getting SuedDepending on what part of the country you live in, your ability to get sued can be very easy. For example, you may think that it is much easier to avoid spending extra money to get a commercial property management company for your property. However, commercial property management companies provide a buffer between you and the tenant. This can be extremely important if they decide to sue. This way, the courts cannot take away all of your personal property. If the court has a private citizen before them, this is their option. If they have a CPM firm between you and the tenant, then they will find the CPM firm liable. Most states will only charge a small fine to a CPM firm for violations.Avoiding Being Sued For DiscriminationNot everyone is on honest. There are people who make all of their money by suing others. They look for the perfect opportunity when someone has their guard down to take advantage. One of the key ways that is very profitable is to manipulate local laws in certain cities concerning commercial property and discrimination lawsuits. If you are a private owner and you’re doing all of the work yourself, you can be especially vulnerable. After all, private owners are directly linked to all of their private property including housing. If someone files a discrimination lawsuit against you, you can lose your private property because of the lawsuit. It is better to hire an outside company like a commercial property management firm in order to avoid situations like these.

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