Although there are many similarities, there are also many differences between residential and commercial property management. Here are six of the main differences:
1. The type of tenants
Commercial property management typically involves businesses or organizations as tenants, while residential property management involves individuals or families. This changes the type of approach that a property manager must take toward dealing with tenants, including the hours when maintenance is needed, advertising for openings, etc.
2. The type of property
Commercial properties are usually much larger than residential properties, and may include multiple buildings on a single site. This can present challenges in terms of maintenance and security that are not always present with smaller residential properties.
3. The level of regulation
There is typically more regulation involved in managing commercial properties than there is with residential properties. This is due to the fact that businesses are often required to meet certain standards in terms of safety and operations. Because of this, a commercial property manager needs to be up to date with local commercial property regulations.
4. The nature of the leases
Commercial leases are typically set for a much longer period of time than residential leases, and may be renewed on a yearly basis or longer. This allows for more stability for both the tenant and the property owner, but it also means that the property manager must be prepared to deal with any issues that may arise over the course of the lease.
5. The amount of rent
Commercial properties usually command higher rents than residential properties, due to the fact that businesses can afford to pay more for the space they need. This means that a property manager must be able to negotiate leases that are favorable for the owner while still being fair to the tenant.
6. The level of service
Commercial property management often involves a higher level of service than residential property management. This is due to the fact that businesses rely on their properties for income, so even non-urgent issues or maintenance are often expected to be resolved with urgency, since they may affect the business’s operation. A property manager must be able to provide the services that tenants need in order to keep them happy and ensure that they will renew their lease.
Get Commercial Property Management in SoCal
As you can see, there are many differences between commercial and residential property management. However, the most important difference is the type of approach that a property manager must take in order to be successful. By understanding the unique challenges that each type of property presents, a property manager can ensure that he or she is providing the best possible service to both the owner and the tenant.
At Amanica, we specialize in both commercial and residential property management in Riverside, Moreno Valley, San Diego, and throughout Southern California. Contact us today to learn more about our services and how we can help you with your property management needs.