If you own several commercial properties, the odds are high that you've hired a property management company to make sure that everything is cared for appropriately. A good property management company is a great investment because it can take a lot of stress off your shoulders.
A bad property management company, however, not so much.
Here are some of the signs that your property management company may not be working out:
- You don't know when the last inspection of the property happened. Part of the reason you hire a property manager is so that you don't have to inspect the property yourself -- especially if you happen to live at a distance. Regular inspections keep minor damage from building up and causing bigger problems.
- Tenants are complaining about repairs that aren't being handled. If a tenant is contacting you directly about a long-undone repair, that's a serious issue. The odds are high, too, that it isn't just one disgruntled tenant having a problem. If your property becomes uninhabitable because of the lack of repairs, your tenants may be justified in breaking their leases.
- You seem to have a string of "problem" tenants. Part of your property manager's job is to make sure that your tenants are properly screened -- within the limits of the law. It's also your property manager's job to evict tenants that constantly break the rules.
- You can't seem to get your property manager on the phone. You should be getting regular reports to start with -- and your property manager should always be responsive to your calls or emails. If you're waiting days to hear back from a property manager, you're probably deliberately being ignored.
If your commercial property's value or your rental proceeds have taken a hit due to poor management on the part of a property management company, it may be time to consider legal action -- especially if the economic damage is severe.