Landlords and property investors usually hire third-party managers to oversee the daily operations of rental properties. These commercial building managers are responsible for performing multiple tasks, including accounting, maintenance and repairs, even rent management in some cases and more.
They need to ensure that the building’s operation is in accordance with the guidelines set by the property owner.
Here are the main duties that an efficient commercial building manager is expected to perform:
A commercial building manager’s prime task is to negotiate a lease space by interacting with prospective tenants. They may work with a marketing team to rent out vacant spaces or promote the offices themselves. In this regard, they will be responsible for updating marketing materials, such as plans, brochures, press releases and websites.
Executing lease agreements, conducting credit checks of potential tenants and recording contracts are some of the most important tasks performed by commercial building managers.
It is important for a commercial building manager to maintain a proper budget and keep detailed records of the property. They are usually provided with a budget for the building maintenance, which they are required to operate within.
Making improvements in the building, repairs and keeping an emergency fund is usually the manager’s job. In addition, the owner may ask the manager to file taxes for the building or provide other related assistance during the tax season.
The commercial building manager should record all financial records accurately, including income, expenses, repairs, maintenance requests, leases, insurance costs and records of complaints.
Commercial building managers are responsible for establishing and maintaining relationships with tenants. Managers are required to fill office spaces by finding new tenants who demand the kind of space offered by their building.
They are required to have a good understanding of the market where the building is located and the type of tenants that make their target audience. This enables them to settle the initial rent level and deal with any rent issues later on.
Managing the Rent
Building managers are responsible for collecting rent from tenants. They are in charge of establishing a smooth cash flow by deciding a fixed date for rent collection and firmly imposing late penalties in case of any delay in payment by the tenants.
Property managers can adjust the rent. They may decrease it in some cases, but normally, the rent is increased by a fixed percentage every year as stated in municipal and provincial laws.
Commercial building managers are expected to have a good knowledge of landlord-tenant laws. Managers are usually the first point of contact in case of a dispute or eviction, as well as regarding any general aspect of the legal functioning of the property.
Supervision and Maintenance
Supervising the overall performance of the building is also the responsibility of a commercial building manager. Managers must keep the cleaning and maintenance of the building in check and tend to the tenants’ requests for services and repairs. This can be done by either hiring staff or subcontractors who report to the manager.
A commercial building manager is also in charge of monitoring the electrical and plumbing systems, janitorial staff, and landscaping and painting. They also need to routinely inspect the building to ensure proper maintenance of its main features, such as elevators, floors, doors, and windows.
They must also have a good understanding of disability access requirements and make sure that emergency exits are visible and exit signs are lit up. Recommendations should be made to the owners for repairs and upgrades whenever required.
Property investors may find it challenging to deal with all the legal regulations of commercial real estate. Hiring a building manager helps reduce the chance of error and ensures that your building complies with all applicable regulations.
Your commercial building manager should, undoubtedly, have excellent multi-tasking skills in order to ensure the smooth running of the premises. For advice regarding the survey and construction of residential and commercial buildings, please visit our website.