Residential and commercial buildings serve completely different purposes, but in terms of building management, they are not very different: they both consist of walls, they both have floors, windows, they both use running water and electricity, to mention just a few common physical features. Both types of properties are served by property management companies – here is what the process involves with either building type.
The Types of Tenants
The property management firms that handle residential buildings need to deal with individual occupants, while the companies that provide building management services to the owners of commercial properties need to handle a wide range of different types of tenants, including shops, stores, restaurants, service provider offices with various profiles and so on. Each type of commercial tenant configures their rented space based on different criteria, therefore the requests they approach property management companies with are very different, too.
The Tasks Involved
The activities and services that residential property managers are required to perform consist mainly of rent collection and maintenance and repair tasks related to the property, often based on a schedule. This means that the property manager or the employees of the property management company visit the properties in their care when they need to, but in most cases, they do not spend time there continuously.
Commercial properties are usually more complex, especially in the case of facilities that are very large, such as office buildings or shopping malls. While the tasks to be handled are essentially the same – collecting the payments from the tenants and handling the maintenance and repair tasks to preserve the building in good working condition –, the scale of the tasks is different and often require the continuous presence of a building manager as well as of repair and maintenance team on site.
Handling Tenant Payments
The companies that handle residential properties as well as the firms that work with commercial clients need to have extensive and detailed knowledge of the legal and financial aspects of collecting money from the tenants. While in the case of residential properties, the payments required of the tenants mainly consists of the rent and the utility bills, commercial tenants are usually required to pay not only their rent and overheads, but other cost categories, such as various taxes, maintenance fees for the space they rent as well as for various common spaces (such as the staircase and the elevator in the case of a shopping center) and insurance premiums. The property management companies in charge of commercial facilities need to know exactly how these complex commercial payment structures work, they need to follow whether the payment deadlines and terms are respected by the tenants and they need to be familiar with the methods of collecting payments.
Knowledge of Building Codes
The most qualified rental property management Denver firms also need to possess the right type of knowledge of the legislation applicable to keeping the buildings in their care up to code. The applicable codes are different for residential and for commercial properties and they might change frequently, therefore property managers, whether engaged in managing residential or commercial properties, need to stay up to date with any legislative changes.