Hiring (and Firing) a Commercial Property Manager

You’re about to discover how to hire a great commercial property manager as well as when and how to fire a lousy one. You’ll learn the 3 main goals of a property manager, 3 powerful advantages to hiring manager (versus managing the property on your own), the single most important thing to look for, the best ways to find them, the 10 most effective questions to ask in the interview, the top 3 red flags to watch out for, tips on managing your manager and specific action steps that will set you apart from the crowd. All you need is one great property manager to build an fortune in commercial real estate and this training will show you how to find and hire that commercial property manager.

Hiring (and Firing) a Commercial Property Manager PodCast Episode

Here’s a summary of what you learned in the video above

3 Main Goals of a Commercial Property Manager

• 1. Maximize Rental Income Potential and Reduction of Operating Expenses
• 2. Strengthen Tenant Retention and Relations
• 3. Enhance Property’s Visual Appeal and Overall Value

3 Advantages of Having a Commercial Property Manager

• 1. Look at Deals for You and with You
• 2. Valuable Third Party Opinion
• 3. Manage Your Property (so you don’t have to)

The Single Most Important Thing to Look For

• Integrity!

3 Ways to Find Commercial Property Managers

• 1. Referral from Another Local Investor
• 2. Commercial Brokers
• 3. Online Search: AllPropertyManagement.com, IREM.org, Yelp.com

10 Key Interview Questions

• 1. What is the general vacancy rate in your area?
• 2. How many units (or square footage) do you currently have under management?
• 3. How long have you been in the business?
• 4. What are your management fees and in what other ways are you compensated?
• 5. Do you have your own maintenance staff or do you use third party independent contractors?
• 6. How do you market your vacancies (or upcoming vacancies)?
• 7. Will you help me set up an annual operating budget for the property?
• 8. What monthly reports do you typically send to your owners?
• 9. Are you licensed, and do you have any professional certifications or accreditations?
• 10. Do you own any real estate investment property?

Top 3 Red Flags

• 1. Unable (or unwilling) to provide references
• 2. Excessive cost structure
• 3. Lacking proper licenses

3 Tips for Managing Your Managers

• 1. Manager must be in agreement with your business plan and exit strategy
• 2. Must have a system of accountability (regular meetings, periodic visits, consistent reporting)
• 3. Don’t be afraid to fire a poor performing manager

Next Steps

• 1. Build and nurture a strong relationship when you find a good property manager
• 2. Send a “Thank You” note
• 3. Reward them with a management contractor

All you need is one great commercial property manager to build an absolute fortune in real estate.