A commercial property management company is directly accountable for and must comprehend a myriad of functions, disciplines, and responsibilities, including:
- real estate principles and laws dealing with property rights
- liens, encumbrances, and easements
- reciprocal easement agreements
- trade fixtures
- real estate tax assessments
- building and life-safety codes
Additionally, a capable property management company understands accounting principles, including budgeting and forecasting. The property management company must have skilled negotiators, understand contract law, bidding practices and procedures, and have project management skills.
A full-service property management company must be able to manage processes and projects, as well as people. In the case of a rental property with tenants, the company must understand various types of commercial leases, be able to legally interpret them, and be familiar with landlord-tenant laws. Finally, the company must possess thorough understanding of about all aspects of operating and maintaining a commercial building, including its systems and equipment.
Considering the complex interaction of skills, disciplines, and principles that comprise property management, a commercial property management company is usually more knowledgeable about commercial real estate than the property owner.
Partial List of the Functions, Disciplines, and Responsibilities of a Commercial Property Manager