To choose the most suitably experienced property manager for your property (or properties), you first need to understand the different expertise that property managers can have.
You have residential property managers and then you have commercial property managers.
So, what do you do if your investment property portfolio consists of both?
Want to know more about the differences between residential and commercial property management?
Find out with the Perth property management experts at Pro Property Group down below.
What does a residential property manager do?
When it comes to leasing out residential properties and responsibilities for day-to-day tasks at said tenanted residential properties – this is the role taken on by a residential property manager.
To further define and explore – residential property managers:
- Advertise, market properties and conduct home opens and inspections
- Find and reference-check rental applicants
- Collect rental payments
- Respond to tenant requests and organise necessary repairs and maintenance
- Make payments and keep record of financial statements.
Residential property managers need to have a skillset that enables them to source good tenants, negotiate effectively and resolve disputes.
What does a commercial property manager do?
A commercial property manager is similar in some ways, but not in others. These professionals deal exclusively with leasing and managing properties used for business purposes.
There’s three types of commercial property, grouped by:
- Commercial offices
- Industrial properties
- Retail shopping outlets.
The legal environment is often noted as the most differing aspect to residential and commercial property management.
Where residential properties are overseen by the Residential Tenancies Act (1987), commercial tenancies are largely governed by what’s mutually agreed upon between tenant and landlord within the lease terms.
The differences between a residential and commercial property manager
There exists boundaries and limits in residential tenancies.
These include:
- Tenants can be charged for rent, bond, utility use and damage compensation but not charged for council rates, building insurance, re-inspection and administration fees.
- Landlords must give proper notice if/when terminating a lease.
- Landlords must arrange repairs deemed urgent within 24-48 hours.
- Security bonds must be refunded (unless damage or rent owed is incurred).
- Residential tenancy disputes can be taken to the Magistrates court.
Commercial leases are more detailed and often run for longer leases, and commercial tenants are often subject to fees such as:
- Legal fees for lease preparation
- Council and water rates, plus strata levies
- Insurance
- Cleaning, maintenance and security costs
- Building repairs and management fees.
The role of a commercial property manager
Unlike a residential property manager, commercial property managers aren’t usually involved in the leasing of the property. They may, however, be very involved with contractor liaison to ensure a well-kept, clean and safe commercial premises.
Like residential property managers, they keep financial and safety-related maintenance records.
Commercial property managers are well-versed in profitability monitoring and communicating this to the landlord.
Who can you rely on for property management?
You can trust in Pro Property Group when it comes to residential AND commercial property management.
We have the personalised package for you whether you’re a residential property investor, commercial property investor or both!
Looking for professional and reliable property management in Perth?
Look no further than Pro Property Group. Contact us today to discover our full-service or DIY property management services for residential and commercial properties.