What is the Difference between Commercial and Residential Property Management?
Commercial and Residential rental properties each have unique requirements for management. At DJW Property Management we employ a unique team to service these clients. In this post, the discussion will be focused on what commercial and residential property management is, does, and how much it costs. Investors should seek out qualified property managers to save themselves the time and hassle of running down every problem that occurs with the property.
What is Commercial Property Management?
Commercial Property Management is the day to day operational running of a commercial space that is being rented to a company or corporation with the intention of that company or corporation conducting business out of the space. The management company will appoint a manager who oversees all aspects of the physical building, though the commercial manager’s role may be limited within the building, their intention is to make sure that the systems critical to the building are in good standing.
Typical roles of the manager include a leasing agent, they act as the person who seeks out tenants for the investor, the manager keeps the building occupied, so that the investor can profit. After they find a tenant, the manager works to maintain the books and report to the investor either a quarterly or annual report for tax reasons.
Finally, maintenance. The most important aspect of keeping the tenants in the building is how well it’s kept. The commercial property manager will care for the lawn, the landscaping, and any external features. Additionally, the manager can coordinate cleaning services to care for the interior of the building as well, such services might include steam cleaning carpets and refinished hard floors.
What are the fees for a Commercial Property Manager?
A Commercial Property manager costs around $100 – $500 a month on a flat fee basis, often times, a company will charge based on extra services that need to be rendered, those costs can range between $100 and $1000 depending on the service and the duration it is required for.
What is Residential Property Management?
Unlike Commercial Property Management, Residential Property Management is focused on managing buildings where people will be living, it is much more thorough and inclusive. Typically, these properties include single family homes, multifamily homes, apartment complexes, condominiums, and long term room rental facilities.
The residential property management company seeks to remove all stress from the investor who owns the house. For example, if a tenant calls in the early morning with a critical maintenance call, it is not the owner who receives it, but the company. The residential property management company contacts the necessary repair person or dispatches one of their own to alleviate the tenant’s complaint. The residential property management company acts as the landlord and that absolves the property owner of the day to day operations of the building or apartment complex.
Typical roles for the Residential Property Manager include finding and replacing tenants, screening tenants, and managing the books. At DJW Property Management, we specialize in residential property management, we offer value enhancement, 24-hour emergency maintenance services (electrical, plumbing, and clean up), collection of security deposits and collection of monthly rent.
A property manager also acts as a buffer between the investor and the tenant in the event that things do not work out. DJW Property Management makes every attempt to work with the tenants, however, after an exhaustive resolution process, the manager will evict the tenant for non-payment or for violating a term of the rent.
Residential Property Management Fees
Fees for residential property management typically start at a fixed base and vary from there. At DJW, we have no fees for the lease, the renewal of the lease, set up fees, and tenant abandonment. We charge a flat 8% fee for our management services, and we charge an annual fee of $890. We are a cost leader in the Property Management industry.