Avoiding Discrimination Lawsuits

Unfortunately, the world is full of dishonest people. Some people will make it their life mission to have a career in suing others. Falling victim to someone who scours commercial properties for reasons to sue can be a huge stressor to a commercial property management company. However, the effects of such people can be financially devastating to a property owner who tries to manage a commercial property themselves. It only takes one lawsuit and the property owner loses everything. Some ways that people will choose to soon is over discrimination. Basically, they will sue the business that is the tenant and then sue the management of that tenant in order to recoup losses. You cannot control everything a tenant does and so this can cause severe loss of financial gain.

Avoiding Lawsuits

Many property owners are unaware of the consequences of allowing one small area of managing a commercial property to slip. Typically, commercial properties are watched like a hawk by local authorities. After all, a business is open to the public. The public is of paramount concern to governments. If there is something that may cause problems for the public, you will be fined or sued for it. This could be something minor like not deicing a sidewalk quick enough. Instead of being able to sue the commercial property management business, there is no buffer and the owner will be sued directly. This means that the owner could stand to lose all of their personal property including their home. It is important that the property owner is aware that extreme loss can be imminent.

Explaining How Your Fees Are Applied

One of the main factors that a property owner is not considering when thinking of taking over a commercial property is how much their time is worth. If they are normally working in a regular job, they know what their dollar amount is. You should make them aware that they will be doing lots of remedial tasks that can take up a lot of their time without returning very much profit for the effort. Explaining to them how your fees are applied and how much everyone is paid will depict this point. After all, you probably use many different employees with many different pay scales within your commercial property but management business. You may even hire unpaid interns to do work and they’re not even aware of it. Explaining these kinds of things will help you to get your point across to the property owner.

Showing That Your Company Is Cost Effective

The main problem that most property owners do not realize is that if they take the reins themselves, they will have to hire staff and contractors. They’re usually completely unaware that you are saving the money by sharing these employees across all of your clients. Essentially, it is more cost effective to have one employee that services 10 tenants that it is to have one employee doing the same thing for one building. You have been passing on this savings to the client and you need to make them aware of that. You should also point out other services that you are providing that have a similar effect. For example, landscaping, plumbing, and other kinds of the annual maintenance. In addition to servicing the tenants, you’re also providing them with an office that has a reception, lawyers, an accountants.

Reasons Not To Use Commercial Property Management

When you are in commercial property management, it is important to understand why people might want to avoid using your services. The main reason that most property owners choose to do away with your services is that they are speculating that it will save them money. However, they soon will realize that the safe huge mistake. Some of those related problems will be:

• How much time the owner has to spend
• How choosing not to lease someone can be seen as a reason to take legal action
• Having all of the tools needed such as background checks, credit checks, and eviction forms
• The cost of staff not being cost effective