Keep Your Business Property Running Like Clockwork:
How to Choose an AMC

Every business owner is aware of the importance of assets in determining profitability and market position. A business asset is anything valuable that can be converted into cash during a time of need. Though cash and cash equivalents are the most common type of asset, others include equipment, inventory, plant, and property.

Commercial real estate is quickly becoming a well-chosen asset among business owners. If you own multiple properties, these assets can help your present and future financial standing. The statistical figures provide all the evidence we need.

According to Statista, the commercial real estate market is expected to reach a staggering value of $28.18 trillion by 2028. It is growing at a CAGR of 2.66%. Now, owning commercial property is great, but managing it is a whole different ballgame. If you're finding it difficult to keep tabs on multiple commercial properties, consider partnering with a reliable asset management company (AMC).

The only problem is that the market is overflowing with AMCs, and choosing the right one can seem overwhelming.

Fret not! This article has useful tips to help you choose an AMC that will keep your commercial property running like clockwork.

Choose Someone with Local Expertise

Effective property management is all about understanding the local market. This is why you must choose an asset management company that has expertise in some specific areas. These include:

Vendor relationships – Your commercial property will require some level of repairs or maintenance from time to time. This means the property manager must have relevant experience handling solid relationships with multiple vendors. This will ensure that your commercial property is well taken care of.
Licensing requirements and applicable laws – Depending on the jurisdiction, certain laws will govern the management of commercial properties. This should include certification and inspection as well. In other words, the AMC must be familiar with local laws and licensing requirements.
Pricing – Good commercial property managers will know how to research and identify relevant pricing so that the property remains competitive compared to others in the area. This means they should have vast knowledge about the local pricing and market.

Ask Them the Right Questions

The more information you gather, the better you can assess the commercial real estate managers in your area. There may be plenty who are great, but the goal is to find one that is best suited for you. This means they should make you feel comfortable with the idea of letting them handle your business property and its daily operations.

Start your search by asking the right questions, and you will be halfway there. When you contact prospective property managers, ask them questions like —

What is your level of expertise in handling key documents like leases and agreements?
How long have you been in the industry, and what are some well-known clients you have served?
What is the monthly fee, and what is the breakdown for it?
How do you conduct property inspections?
What is the typical number of properties you can oversee at a time?
Will I get any annual or monthly financial statements?

Find Out If They Prioritize Technology and Organization

Property management is no child's play. This process involves a great deal of back-and-forth record-keeping and clear communication. Your chosen property manager must know how to leverage technology to their advantage.

They must have experience in processing documents and technological capabilities for administrative tasks. A good property manager would make the management process as hassle-free as possible.

This means their document-handling process will involve paperless solutions, including project management systems, accounting software, digital payments, and more. They will also be up-to-date with cloud technology for seamless storage and reference.

Check for Relevant Insurance Coverage

Another important factor to consider in a commercial property manager is the types of insurance coverage they have. Your property manager should have a property-casualty policy, general liability insurance, and error & omissions (E&O) policy.

They may even mandate that you have adequate insurance coverage (which will only benefit you from the protection perspective). So, it's perfectly alright to ask your prospective manager about their insurance coverage.

Look for License and Industry Experience

Across most US states, property managers must have a relevant real estate broker's license. You should also look for a commercial property management company with proper credentials.

All licensed property managers are required to undergo a management course. They must also pass a state licensing examination. This gives them added leverage and a layer of knowledge to help you navigate your business needs better.

Finally, your commercial property manager should offer comprehensive management services that span across small and large projects. This way, you can rest assured that as you focus on growing your business, your assets are kept in order.