The Best Way To Go About Renegotiating Leases and Collecting Rent
Commercial property management can be a sound investment in the Toronto real estate game and it will definitely pay off to have a solid management group to handle the day-to-day operations for you. These mundane tasks can be time consuming for an investor without the support of an experienced management team that knows how to handle repairs, collections, improvements and the procurement of new tenants.
Management groups like HighGate are skilled at marketing your commercial real estate to firms looking to grow or expand into new markets. They have the contacts that your average person who is not in the industry probably doesn’t have. These marketing agents working under the tent poles of your property management group can attack the local periodicals and internet sites that get used by corporate HR teams all over North America. They will use surveys and word of mouth from current tenants to discuss options for locating new customers in the area. The advertising arm of most property management teams like HighGate will post vacancies along major thoroughfares to garner the attention of motorists passing through corporate zones as well. These strategies are available to larger property management groups due to account volume which would prevent a single investor from recouping the expense.
Savvy property managers will observe fluctuations in the local market and use that information to extend the length of your tenant’s leases or leverage a greater rental rate in times of real estate shortages. Property management groups will also track the financial statements of your tenants and formulate plans for lease negotiations with regard to those figures and the overall conditions of the market. An individual investor would never have the time or resources to perform this market analysis on their own. Property managers also hire negotiators that are highly skilled at securing the price you need to cover the property mortgage and lock in a tenant for years to come.
No one wants to be the guy that has to go office to office in the corporate building and inquire about the rent payment. It is an unpleasant task and one that should be left to a property management group that knows how to get tenants to pay on time and in full. These management groups will enforce the agreed upon terms each month and implements strategies like “no cash” payments and require automatic payments to make it easy for the tenant to remit the rent. Setting up automated payments may be too costly for individual investors, which is why a property management group can spread the expense over a large number of clients.
Overall, a property management group in the Toronto area can assist you with the important tasks of securing rental payments and locking in tenants for years to come without all the time and effort that a single investor might expend.