Managing the expenses of a commercial property is a key part of maintaining a good ROI on the investment. In commercial property management, that translates to a good deal of planning, customer service for your tenants, and detailed record keeping. Here are some tips on managing the expenses of a commercial property

4 Commercial Property Management Tips on Managing Expenses

1. Plan for Year-Round Expenses

The maintenance cost for a commercial property will vary depending on the property’s condition and age. Make sure to budget for “unexpected” maintenance issues that are likely to happen. Take your doors, for example. Regardless of how old they are, they could face some extensive wear and tear, so hiring a commercial door repair service as soon as you notice the first signs will be very important and you will feel more relaxed if you knew you had money set aside for this. Things like an A/C unit going out or a leak in the roof aren’t usually yearly expenses, but they do happen. A commercial roof repair company, amongst other professionals, will be able to help out in this area if situations like this arise.

Another thing to keep in mind is the season. Depending on whether it’s summer or winter, you’ll have to factor in higher costs for running the heater or air conditioning. Once you establish past billings for water, electric and gas, you can better forecast these costs.

2. Keep up on the Maintenance Work

How you handle maintenance requests by tenants is key to managing your expenses. By responding promptly to maintenance issues, you are keeping your tenants or customers happy and satisfied. It helps if you have the numbers of a handful of useful companies that can help you whenever repairs need to be done. For example, if you hire a Raleigh roofing contractor and find they do a good job; keep their number so next time there’s a roofing issue, you have a reliable contractor you can go to. These issues can be basic ones like leaky pipes or squeaky doors whereas other issues might be more unique to the properties you own. If you rent out a warehouse then you’ll face some unique issues, you might need to get Commercial garage door repair if you get reports that it isn’t working properly. Whatever it is you have to deal with, keeping on top of maintenance is an important part of your expenses. This can lead to lease renewals and save you money on turnover expenses. Plus, by addressing issues before they get worse, you are likely to save on the overall cost of the repair.

3. Get Informed of the Laws

It helps to understand property codes because specific documentation and actions required by the property owner must meet all state and federal laws when doing certain maintenance work. It’s not always as simple as hiring a technician to fix things and get the job done.

4. Good Record Keeping

With good record keeping, commercial property management becomes a lot easier. It pays to take the time to practice good record keeping so you can manage and budget for expenses accordingly. Find a way that works for you, whether it is using software to help organize and manage expenses, or you prefer to do it all by yourself with spreadsheets.