Property Management Tips for Commercial Real Estate Owners

The following is a list for commercial real estate property owners to help safeguard their commercial rental property investments.

  1. It is recommended that a property owner consider employing an accountant to collect rents, common area fees, real estate taxes and insurance. This keeps the money out of the hands of the property manager, and it gives the owner peace of mind. In addition, it may reduce the property management fees.
  2. An owner should always acquire a copy of the property manager’s real estate license and a certificate of insurance from their errors and omissions carrier.
  3. The property owner must always perform due diligence on the property management company by calling all references. In addition, he or she should call the title company of an address where he sees a sign of the prospective property management company to ask the property owner about the management services.
  4. The owner should also inspect some properties that the property management company maintains and pay attention to the condition of the premises.
  5. The proprietor should not have the management company be the leasing agent. This protective measure will possibly eliminate any future conflicts of interest.
  6. If an owner has used a maintenance company in the past with good success, he or she should specify to the management company to employ the maintenance company on the owner’s behalf and place that in writing in the contract.
  7. Always request from the management company any additional fees that may be assessed to the owner.
  8. The property owner must always investigate with the California Bureau of Real Estate any complaints filed against the proposed management firm by phone:
    (877) 373-4542 or go to the website:

Disclaimer: The content provided in this blog is intended for informational and educational purposes only. Nothing in this blog should be construed as legal advice or be used as a substitute for professional advice. The opinions expressed herein are solely those of the author and do not represent the views or opinions of any organization or entity that the author may be affiliated with. In no event shall the author be held liable for any actions taken based on the information provided. Any use of this blog in a court of law or in legal proceedings is expressly disallowed.

Contact us to schedule your complimentary consultation.

Lee Segal Commercial Real Estate Expert Logo

Segal Commercial
2221 Barry Ave., Suite 200
Los Angeles, CA 90064