The series of Charles Schwab commercials said it best:
“In life, you question everything. The same should be true when it comes to managing your wealth. Are you asking enough questions about the way your wealth is being managed?”
This is also true for your commercial property. Try reading that passage again, but replace “wealth” with “property” or “asset.”
As we enter 2017, how can you make the new year better? When it comes to your real estate, here are 3 questions you should start asking your property manager immediately.
A recent case study came out which showed amongst all property management companies polled, there was an average of only 15% of tenants that were compliant with the insurance requirements in their lease and even worse, only 4% of vendors were compliant with the property owners’ insurance requirements.
If you called your property manager today and asked for a list of every vendor on your property and their Certificates of Insurance (COI), would they be able to furnish them? Within the hour?
We hope so.
We have earthquakes, wind, even rain on occasion across Southern California. For some properties, mother nature is not an issue because properties are properly inspected and prepared for weather elements. But, unfortunately, this isn’t always the case.
Would a roof inspection have shown issues that could have easily and potentially inexpensively been repaired? Did your manager go out and walk the property after the first rain and heavy winds?
If I asked you when the last time your manager was out at the property could you tell me? What about how many times within the past month?
This is what managing the asset is about. And when you ask this question, the leasing aspect shouldn’t be the only consideration. When was the last time your property manager checked in with you and asked what your goals for the property were? Or are they just hoping you don’t sell so they can keep the monthly income?
Start a conversation, ask the questions, and demand a timely response.