The Importance of a Great Property Manager: Your Real Estate Secret Weapon

Ever heard the phrase “A good property manager is worth their weight in gold”? It’s not just an old saying—it’s gospel truth in the world of commercial real estate. In fact, I was reminded just how invaluable a great property manager is during a recent career milestone.

Picture this: I closed a deal on a shopping center, and the property's condition blew me away. Everything from the pristine grounds to the perfectly organized records (P&Ls, Tenant Ledgers, Rent Rolls—you name it) was spot on. Every tenant file was meticulously documented, down to the last email. The reason? A top-notch property manager was steering the ship, and it showed in every square inch of that center.

In the commercial real estate game, property managers are the unsung heroes, the backstage wizards making sure everything runs like a well-oiled machine. While investors juggle deals and tenants go about their business, property managers are the ones holding it all together. So, what makes them so crucial, and what exactly do they do?

Why is a Great Property Manager So Important?

A great property manager doesn’t just maintain a property; they elevate it. They are the glue that holds the operational, financial, and human elements of a commercial property together. Whether it’s attracting top-tier tenants, ensuring smooth day-to-day operations, or maximizing profits, the property manager is the lynchpin. A poorly managed property? That's a one-way ticket to tenant complaints, lost revenue, and potential financial disasters.

In essence, a stellar property manager adds value to your investment. They handle the nitty-gritty so that you, the investor, can sleep soundly at night, knowing your asset is in expert hands.

Duties of a Great Property Manager (AKA "The Juggler Extraordinaire")

So, what exactly does a commercial property manager do? More like, what don’t they do? Here’s a snapshot of their many roles:

1. Tenant Whisperer Property managers are part diplomat, part problem-solver. Whether it’s handling complaints, responding to maintenance requests, or negotiating lease renewals, they keep tenants happy—and happy tenants stick around.
2. Financial Wizard Budgets, rent collection, P&L statements, and rent rolls? All in a day’s work. A property manager ensures that the property stays profitable by keeping an eagle eye on expenses, maintaining cash flow, and ensuring rents are collected on time.
3. Maintenance Guru From fixing that leaky roof to ensuring the HVAC is humming along, a great property manager keeps the building in tip-top shape. Preventive maintenance is their mantra, and they know every square inch of the property like the back of their hand.
4. Vendor Manager Extraordinaire Need a landscaper, plumber, or security team? A property manager has a Rolodex (or more likely, a phone full of contacts) of trusted vendors who keep things running smoothly without busting the budget.
5. Compliance King/Queen Zoning laws, safety regulations, and property codes—oh my! A great property manager is up to date on all the legal requirements to ensure the property is always on the right side of the law.
6. Marketing Maven Need to fill a vacant space? Property managers know how to market the property to attract high-quality tenants. They understand what draws in the right businesses, keeping occupancy rates high.

Why You’ll Want to Keep Them Around

A great property manager is proactive. They don’t wait for problems to pop up—they prevent them. They anticipate what tenants need before they even ask, and they keep investors in the loop with transparent and timely reports. More than just handling crises, they’re always thinking ahead, strategizing to make sure the property is always operating at its best.

So, the next time you walk into a beautifully maintained property where everything seems to be running like clockwork, remember: there’s a commercial property manager behind the scenes making sure that every detail is just right. Without them, even the most promising property could become a headache for investors. But with a great property manager at the helm? It’s smooth sailing.

Shawn Massey is an adjunct professor at The University of Memphis where he teaches a graduate class in real estate development and undergraduate/graduate in real estate investment. When he is not teaching, he is a full-time retail real estate advisor with TSCG. He holds the following designations CCIM, ALC through the National Association of Realtors and CRRP, CLS, SCLS designations through ICSC. To contact Shawn Massey please call (901) 461-7070 or via email at [email protected]