Why Opt for Property Management?
An iconic high-rise in downtown Jacksonville, Florida, Riverplace Tower illustrates the transformative power of quality property management. After more than two decades of family ownership and operation, the implementation of creative and meticulous property management practices slashed the asset’s operating costs by 12 percent and increased occupancy by 15 percent in just a year. With the benefit of volume purchasing, the cost of property insurance was cut by 55 percent. Property managers appealed the real estate tax assessment, successfully decreasing the tax liability by 26 percent, or $200,000. Re-staffing and new vendors helped convert the property into a destination for tenant events, concerts and food trucks.
This shining, city-center tower, now a well-run hub of activity, shows that property management doesn’t just spare owners from maintenance, repairs and leasing headaches. It is a leveraging art that balances high-quality services with well-managed operating costs in order to maximize tenant satisfaction and, ultimately, enhance a property’s value. What might be considered a DIY obligation to cut costs, or a begrudged necessity in the budget, can instead be a true income driver that adds value to assets.
What makes the difference?
Quality property management doesn’t simply react to requests for repairs or solutions. It plans, budgets and performs preventive maintenance, and must be proactive to be successful. It handles utility payments, but also tracks and optimizes energy consumption. It clarifies and reconciles lease agreements and compliance, relying on dedicated people who value communication and relationships. Systematic expense controls keep costs transparent and in line. Tenant turnover grows less frequent and, when it does occur, sound property management can shorten and smooth the transition and efficiently manage renovations, thereby reducing costs and driving value. An experienced property manager’s knowledge of both local and industry markets can improve vendor management and draw visitors. Always, thorough accounting, record-keeping and clear communication will elevate performance and returns.
Thoughtful and effective property management is not a cost but an investment. Commonwealth Commercial Partners (CCP) strives to meet this standard for its clients, driving income through customized management plans with accretive focus. Founded as a property management firm, CCP has grown to encompass numerous related services, becoming a vertically integrated firm able to meet clients’ needs in-house, from construction management to asset management, sales and leasing, facility management, hospitality management and forestry consulting.
With a boutique style and flexibility, Commonwealth Commercial creates customizable plans for individual clients. “With a la carte services,” says Adam Megenity, Senior Vice President/Partner, Managing Director – Richmond, “we can tailor management agreements to fit the customers’ needs. It’s not all or nothing. Effectively, we become the clients’ in-house management team.”
Clients of the firm have a single point of contact, so that they can build relationships and streamline communication. CCP property managers generally have long tenures and concentrated portfolios. They take ownership of accounts and stay with them, which gives clients consistency and quick response times from someone who is already knowledgeable about their assets.
In addition, property management services at CCP are scalable, creating opportunity for lasting partnerships even over the course of expansion. “If a client has a new opportunity,” says Hunter Huber, Managing Director – Virginia, “we can be flexible and grow with them. Where they go, we can go.”
These aspects of quality property management – scalability, stable relationships, customizable plans, proactive practices and careful cost control – combine to elevate property management from a necessity to a critical income driver for any asset.
