Houston ranks number one in the country for industrial and office commercial construction. With this explosive growth, competition is fierce for investing in commercial real estate. However, for a commercial real estate investment to be profitable, you need to maintain the building.
This guide will help you create a plan for the maintenance and repairs of your commercial building.
Take a Proactive Approach
The best strategy is to take a proactive approach to maintenance. Hiring a commercial property management service can make this easier. A comprehensive plan should include hard and soft facilities management.
Hard Facilities Management
The hard facility tasks include the physical elements of the building. For example, the building's structure, facade, electrical, plumbing, HVAC, and elevators.
Soft Facilities Management
The soft facility tasks are those that people do in and around the building. You could hire people to work directly for you. However, hiring an outside service can make their management easier.
- Custodial services
You don't know the upkeep needs of a building if you don't go look at it. Routine inspections are a must to know the condition of the building. This is when you see issues that could become a significant problem later.
Budget for Maintenance and Repairs
Plan for routine maintenance and repairs by budgeting for them. This ensures that the financials are available when they are needed.
Not having the funding available is a common cause for failing to do routine maintenance. Not doing the immediate tasks can result in significantly higher long-term repair costs.
Have a separate fund for this money. That way, you reduce the risk of it getting allotted for something else. In this fund, you should plan for routine maintenance and long-term improvements.
Maintain Good Tenant Relations
Commercial leases include terms that define maintenance and repair responsibilities. Commercial property owners typically maintain the structure and building operations. Tenants are typically responsible for maintaining their rented space.
Maintaining positive relationships with tenants can encourage them to properly maintain the building. This is especially crucial because commercial leases can last for several years. Tenants not doing their contractual responsibilities can result in repairs that cost significantly more than the tenant's security deposit.
Sign Vendor Contracts
Determine what type of services you need to maintain your commercial property. Then you can research, select, and hire the best vendor for each of these needs. Sign contracts that outline the ongoing services required.
Doing this as soon as possible ensures that routine maintenance does not go ignored. It also secures vendors in case of an emergency. Instead of wasting time looking for someone, you can have someone out to the building ASAP.
Secure multiple bids and compare them to find a contractor that offers the best value.
Invest in Your Commercial Building
You need a plan for maintenance and repairs. That way, you can protect your commercial property investment.
Instead of doing everything yourself, property management solutions can provide valuable support. A commercial property manager can help you protect the value of your investment.
Get in touch with us today and let our experienced property managers help you.