The Differences Between Commercial and Residential Property Management - PowerPoint PPT Presentation

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The Differences Between Commercial and Residential Property Management

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One must choose the right property management company as this fall under two categories i.e. commercial and residential. To get detailed information about choosing the right company, have a look at the attachment provided. – PowerPoint PPT presentation

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Title: The Differences Between Commercial and Residential Property Management


1
  • The Differences Between Commercial and
    Residential Property Management

2
  • When researching property management companies,
    youll notice that they fall into two categories
    commercial and residential. There are major
    differences between the two and only by
    choosing the right one for your needs will you
    receive the support and services you require.

3
Leases
  • A lease for a residential property is usually
    brief, quite standardized, and easy to renew. In
    contrast, leases for commercial tenants are
    complex and may feature a variety of extension
    options. Only a commercial property manager is
    likely to understand such leases, know how to
    increase the price to the appropriate amount on
    an annual basis, and be able to help you if the
    tenant wants to end the contract early, which is
    often difficult and will depend on the
    termination clauses.

4
Tenant Payments
  • Tenants for residential properties only need to
    pay rent and utilities. This keeps things simple
    for residential property management companies.
    Commercial building tenants, however, are usually
    required to pay a number of expenses relating to
    property tax, insurance, and maintenance.

5
  • Depending on the type of lease, tenants may need
    to pay all or just some of these expenses. For
    instance, with a triple net lease, the tenant
    pays a net amount for all three, whereas with a
    gross lease, the landlord pays the expenses using
    fixed rental fees. There are also modified net
    leases (which are somewhere between a triple net
    lease and a gross lease) and percentage leases
    (common for retail malls).

6
  • Whatever type of payment system you choose, it
    will be complicated for your property manager.
    This is why you need someone who is experienced
    in dealing with lease types, who will understand
    the clauses, and who will know how to conduct an
    annual recalculation of costs, if applicable.

7
Availability
  • Residential property managers only need to visit
    the building for short periods, often on a set
    schedule. Their main duties consist of collecting
    rent and carrying out any necessary maintenance.
    Commercial properties, however, often require
    much more attention. In fact, if your building is
    a large office or mall, you may need a manager to
    be onsite at all times.

8
Tools and Software
  • Finally, commercial property managers have tools
    and software at their disposal that a residential
    property manager would never even need.

9
  • Managing residential properties is always much
    simpler than managing a
  • commercial property in Edmonton. Building owners
    with anything other than a residential property
    should always choose a professional who
    specializes in commercial buildings if they want
    to prevent problems and receive top-quality
    services.
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