Commercial real estate portfolios are sources of passive income, but these properties require active administration by professionals, which would include those with expertise in Chattanooga property management. Financially, well-managed properties perform better. Logistically, these commercial properties maintain, if not enhance, their value through the years, ensuring better yield as income-generating assets while growing equity at the same time.
Commercial Property Management and Asset Management
Real estate and investment strategies are evolving. I am not surprised to see that the lines between property management and asset management have blurred perceptibly. The reality is effective commercial property management is an asset management strategy with a significant impact on the bottom line.
Role of Commercial Property Management Services
The core responsibility of commercial property managers revolves around day-to-day operations of one property or a portfolio of properties in a market or an entire region. Chattanooga Tennessee property management tasks include:
Leasing: Property managers meet with prospective tenants to present the site while evaluating the suitability of their business and their credit grade. In smaller markets such as Chattanooga, leasing tasks may include marketing, negotiating and evaluating current leases.
Tenant Relations: Property managers provide front-line services, including addressing maintenance problems and ensuring compliance with lease agreements.
Maintenance: Deferred maintenance costs more money when the problem becomes difficult to manage, so a proactive approach to Chattanooga Tennessee property management can save you real dollars.
Compliance: Inadvertent or not, code violations can lead to hefty fines and loss of prestige for property owners. These problems are preventable with the right Chattanooga property management company looking after your investment.
Records Maintenance: Accurate, accessible and timely records are necessary to assess the state of your investment property and the growth of your real estate portfolio.
Benefits of Using Professional Chattanooga TN Property Management Services
One of the more common questions I am asked has to do with the do-it-yourself approach to property management. This is a fair question considering that Chattanooga property management by professionals is a cost center. However, it is difficult to foresee the commitment required and the time-intensive nature of property management without being immersed in the process.
Savings through Economies of Scale: Property management service companies can leverage their size and business connections to negotiate better prices for subcontracted services such as lawn and building maintenance. Reputable property managers can demand higher standards and quicker response from vendors, which could reduce expenses.
Improving Yield through Strategic Planning: Chattanooga property management professionals will work with principals to ensure that the commercial complex is appropriately positioned given current market trends. As the Chattanooga market changes, the property manager must help to ensure that your assets can be repositioned to remain competitive and productive.
Deploying Professional Expertise: Chattanooga property management companies must have field expertise and in-depth knowledge of the local and regional markets, and be able to deploy these competencies to provide growth and maintenance solutions to ensure profitability of your commercial real estate assets.
Managing Vendor Relations: Ensuring that a commercial property remains at optimum conditions requires concerted effort by vendors and property management services. Your Chattanooga property management firm should become the single point of contact for these service providers, managing schedules, goals and expenses. This means that principals are insulated from these basic headaches and free to focus on other business.
How to Find the Right Property Management Firm
Effective property management of commercial real estate is a collaboration between principals and property management professionals. It is important to find a suitable fit for your commercial asset as well as your business goals.
One approach is to start by looking at well-managed Chattanooga properties. More than likely, there will be a professional firm directing property management for this site.
An alternate approach is to ask for referrals from trusted colleagues, professional associations and even tenants.
Whatever you decide to do, please remember that effective Chattanooga property management could mean the difference between breaking even on your real estate investments or breaking out of the humdrum returns that your commercial properties may have yielded in the past.
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Joe Pleva, Director
202 Manufacturers Road
Chattanooga, TN 37405