By Mel Schultz Commercial Property Management landscaping, maintenance, mechanical, window washing

Subcontractors You Want on Your Team

One of the primary responsibilities of a commercial property management company is the hiring and management of onsite workers. Hiring subcontractors rather than part-time or full-time employees saves money, is easier on HR, and ensures you get the best quality and timely work possible.

Here are a few of the types of subcontractors Clarity Commercial finds, vets, hires, and manages as part of our property management services. These are the professionals you need on your team to help you maintain and manage your properties.

Building Maintenance Crew with Subcontractors

Your building maintenance crew is onsite regularly to ensure your property remains in good working order. Your crew makes sure common areas are clean and functional and addresses tenant maintenance and repair requests. Depending on the needs of your building and your tenants, you may require a single crewmember or an entire team to keep up with maintenance and repair demands.

Mechanical Professionals

Periodically, your property’s mechanical systems require maintenance and repair. For most property owners, subcontractors are the right choice for HVAC, plumbing, electrical, and other mechanical work. Clarity Commercial works with only the best mechanical pros in the Twin Cities to ensure our customers’ mechanical systems are properly maintained.

Landscaping and Snow Removal Crew

All Minnesota property owners need great landscaping and snow removal crews on their list of subcontractors. Your property’s landscaping plays a role in attracting and retaining tenants, so hiring a competent landscaping crew is important. In the winter months, working with a reliable snow removal team ensures your driveway, parking lot, walkways, and entryways are clear and safe.

Window Washing Professionals

Your property’s large windows are a selling feature. Regular window washing keeps them clean and clear. Most commercial property windows are too large for someone to do on their own without the proper safety equipment. A window washing crew that comes out a few times a year can make sure your building looks great.

Finding, hiring, and managing subcontractors is a job all its own. Trust commercial property manager Clarity Commercial to find, vet, and manage the subcontractors you need to keep your property working and looking its best. Contact us today to get started.

For more information or to request a free estimate, visit their website at https://myclaritycommercial.com/ or give us a call at (952) 370-224-2699.

Affiliations & Credentials: We are proud members of IREM, CCIM and MNCAR along with various professional organizations and hold relevant certifications in the real estate management field. Our affiliations and credentials demonstrate our commitment to excellence and our ongoing efforts to stay up-to-date with industry best practices.

December 21, 2020

By Mel Schultz Commercial Property Management 2021 commercial property management

2021 Commercial Property Management Predictions

Commercial Real Estate - commercial property management predictions.

It is finally time to put 2020 behind us and take a look ahead to 2021 commercial property management predictions. While the pandemic will have an impact on the commercial property management industry in 2021, experts predict that COVID-19 will have several positive effects on property management next year.

The Property Management Experience Will become More Digitized

After surveying commercial real estate professionals across the country, the experts at Deloitte believe the rapid transformation from in-person to digital property management will continue into 2021. Management companies will continue to increasingly offer prospective tenants property tours online and provide an online leasing experience. Online communication with current tenants is likely here to stay, too, as rent collection and tenant requests are all managed via email and web applications.

Property Management Companies Will Rely More on Tenant Data for Commercial Property Management Predictions

As the tenant experience moves online, property management companies will have more opportunities to collect and use tenant data to improve the tenant experience and increase portfolio revenue. Tenant data can give property managers a clear and accurate look at the books and provide crucial insights into what the future holds. Tracking data related to tenant requests and building use can help you better understand your tenants and meet their needs.

Tenant Footprints May Shrink . . . or Expand

According to the experts at PWC, the rapid transition to a remote workforce has caused many tenants to rethink their space needs. So too has the adoption of curbside service for many retail, restaurant, and medical tenants. In some cases, tenants may cut back on their square footage, eliminating office space or public areas. But others may do the opposite, expanding their footprints to accommodate social distanced collaboration. Property managers should be prepared to be flexible negotiating space in 2021.

Safety Upgrades Will Remain a Top Concern

The personal safety of tenants and guests will remain a top concern in 2021. Property managers will continue to improve building safety and hygiene with robust disinfection processes and updates to high-touch services. Others will upgrade HVAC systems to improve air circulation or install touchless technologies, such as automated lighting, doors, and AV controls.

Clarity Commercial looks forward to serving property owners in 2021 and beyond. To work with a professional property management team based in the Twin Cities, contact Clarity Commercial today.

November 20, 2020

By Mel Schultz Commercial Property Management Manager, staff

Property Manager: Choosing an On-site or Off-Site

Selecting an on-site property manager for your commercial property is one of the most important decisions you’ll make as a property owner. Your onsite manager is your boots on the ground, your point of contact for your tenants, and your record keeper for your property’s agreements, insurance policies, and accounting records.

Your onsite manager should work well with you and your commercial property management company. Often, Clarity Commercial will find, hire, and manage onsite managers for the property owners we partner with. Here is what we expect our onsite managers to do and what we look for in an onsite manager.

Your Boots on the Ground at Your Property

Your onsite manager is responsible for the daily upkeep of your property. They should walk your property to make sure public areas are clean and safe. Things they should take note of include overflowing garbage cans, slick walkways, burnt-out lightbulbs, and sticky key mechanisms in doors. While they may not perform maintenance and repairs themselves, the onsite manager should work with your landscaping service, cleaning company, and maintenance crew to ensure jobs are completed quickly and thoroughly. An effective onsite manager has an eye for detail and is able to coordinate one or more maintenance crews.

Tenants’ First Point of Contact is the Property Manager

In addition to serving the physical property, your onsite property manager is the first point of contact for your tenants. They answer the phones at the management office and are the first point of contact for tenant requests. Your onsite manager may also be responsible for keeping tenants current with rent and enforcing property policies. An effective onsite manager is approachable, friendly, and comfortable asking tenants to pay rent or comply with your property’s rules.

Review and Maintain Property Records

Lastly, your onsite property manager must be organized and familiar with your property’s records. At the management office, they will maintain accounting records, tenant files, and your property management agreement, as well as your property’s insurance policy. While they may not have all of these documents committed to memory, they should be knowledgeable about your property’s policies and know where to look for an answer when asked a question about a lease agreement, rental payment, or insurance claim. An effective onsite manager is well-organized and knowledgeable.

Having a knowledgeable and organized onsite property manager is essential for the success of any commercial property. This individual plays a crucial role in maintaining accurate records, ensuring compliance with policies and agreements, and handling important tasks such as rental payments and insurance claims.

One of the primary responsibilities of an onsite property manager is to maintain accounting records. This includes keeping track of all financial transactions related to your property, such as rent collection, utility payments, maintenance expenses, and more. These records are vital for accurately assessing the financial health of your property and making informed decisions about its management.

Tenant files are another key aspect that falls under the purview of an onsite manager. These files contain important information about each tenant, including their lease agreement, payment history, communication logs, and any other relevant documents. Having organized and up-to-date tenant files is crucial for resolving disputes, tracking lease renewals, and maintaining a positive relationship with your tenants.

In addition to financial and administrative tasks, onsite managers also play a crucial role in ensuring the safety of the property and its tenants. They are responsible for conducting regular property inspections to identify potential hazards or maintenance issues. They also oversee emergency procedures such as fire drills, evacuation plans, and responses to natural disasters.

Onsite property managers are also deeply involved in the leasing process. This includes marketing vacant units, screening potential tenants, conducting tours of the property, and preparing lease agreements. By thoroughly vetting applicants and finding qualified renters, an onsite manager can help minimize turnover rates and maintain a fully tenant property.

These are just a few of the things Clarity Commercial looks for when hiring an onsite manager. We can help you find and manage your next manager, so you can focus on growing your property portfolio. Contact the Clarity team to get started on your onsite manager

For more information or to request a free estimate, visit their website at https://myclaritycommercial.com/ or give us a call at (952) 370-224-2699.

Affiliations & Credentials: We are proud members of IREM, CCIM and MNCAR along with various professional organizations and hold relevant certifications in the real estate management field. Our affiliations and credentials demonstrate our commitment to excellence and our ongoing efforts to stay up-to-date with industry best practices.

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Commercial Lease Renewals - retain commercial tenants

October 4, 2020

By Mel Schultz Commercial Property Management building improvements, COVID-19, pandemic

2021 Renovations and Property Improvements to Consider

As the economy and Twin Cities real estate market continue to be affected by the prolonged effects of the pandemic, many property owners are thinking of creative ways to attract tenants to their buildings. While some have put 2021 building renovations on hold, there are several property improvements property owners can make to help them retain current tenants and attract new ones.

COVID-19 Health and Safety Renovations

The smartest improvements you can make to your commercial properties are those that assure tenants that your building is safe to occupy during the pandemic. A very affordable option is to simply advise tenants on how to configure their spaces to accommodate social distancing. Help them rearrange desk space or use your buying power with your vendors to offer low-cost sanitizing and personal protective equipment to your tenants.

You may also make long-term improvements to your building’s HVAC system and communal areas. Consider updating your air distribution system to improve indoor air quality and remove contaminants. In common areas, consider replacing soft furniture with hard surfaces that can be wiped down and disinfected frequently. You may wish to replace your current countertops with antimicrobial options now on the market. Motion-sensor lighting, automatic doors, and cloud-based controls for the AV in shared conference rooms can also keep your tenants safe. All of these improvements are selling points for potential new tenants.

Sustainability and Property Improvements

While health and safety improvements meet an urgent demand, renovating your commercial buildings to be more sustainable will help you attract tenants and save money in the long run. Improving the energy efficiency of your building lowers your heating and cooling costs, keeps building occupants more comfortable, and is a major selling point for green-minded tenants.

Upgrading your building’s HVAC system not only improves air quality, but it can also save you money in the long run. Efficient systems are more cost-effective to run and reduce your heating and cooling bills. So can energy-efficient windows and doors that help stabilize your building’s temperature, keeping it cooler in summer and warmer in winter. Upgrading your lighting to efficient LED bulbs can save you money in maintenance and electricity bills. Plus, the costs of upgrading lighting can be spread out over several years if you tackle one area of your building at a time.

But what about the initial cost of these upgrades? Many building owners and managers are hesitant to make changes that require a large upfront investment. However, with the right planning and budgeting, these upgrades can actually pay for themselves over time.

One way to start is by conducting an energy audit of your building. This will give you a better understanding of where your energy usage is coming from and where you can make improvements. From there, you can create a plan of action for upgrading your systems in a cost-effective manner.

Another option is to look into financing options specifically tailored for energy efficiency upgrades. Some utility companies offer rebates or incentives for making certain energy-efficient upgrades, which can help offset some of the initial costs. Additionally, there are government programs and tax credits available for businesses that invest in energy-efficient upgrades.

Beyond the financial benefits, investing in energy efficiency is also a way to demonstrate your company’s commitment to sustainability and reduce its environmental impact. This can not only attract environmentally conscious customers, but it can also improve employee morale and attract top talent who value working for environmentally responsible companies.

The benefits of energy-efficient upgrades extend beyond just cost savings and environmental impact. With newer systems and equipment, you can often see improved performance and productivity. For example, installing LED lighting can not only save on electricity costs, but it also provides better-quality lighting compared to traditional fluorescent bulbs.

In addition to conducting an energy audit, it’s important to regularly assess your building’s energy usage and look for areas where improvements can be made. This could include upgrading to ENERGY Star-certified equipment, installing motion sensors for lighting, or implementing a building automation system to optimize energy usage.

Not only will these upgrades save you money in the long run, but they also demonstrate your commitment to sustainability and can even improve your company’s overall image. In today’s increasingly environmentally conscious society, consumers are actively seeking out businesses that align with their values. By being proactive in reducing your carbon footprint and promoting energy efficiency, you can attract new customers who prioritize sustainability.

It’s more important than ever to attract and maintain good tenants. Building renovations and improvements are a solid strategy for keeping your building competitive in the leasing market. For more tips on how to attract tenants, contact the Clarity Commercial team today.

For more information or to request a free estimate, visit their website at https://myclaritycommercial.com/ or give us a call at (952) 370-224-2699.

Affiliations & Credentials: We are proud members of IREM, CCIM and MNCAR along with various professional organizations and hold relevant certifications in the real estate management field. Our affiliations and credentials demonstrate our commitment to excellence and our ongoing efforts to stay up-to-date with industry best practices.

March 23, 2020

By Mel Schultz Commercial Property Management budget, financial, projection

Building a Realistic Budget Projection for Your Commercial Properties

Commercial Property Management in Minnesota
Budget Projection

A Note on COVID-19

The Clarity Commercial team is watching the COVID-19 pandemic closely and is following all guidelines from the CDC and the State of Minnesota. Our team is stepping up hand hygiene and practicing social distancing to help slow down the spread of the virus and ensure we are healthy and able to serve you and your properties through the pandemic.

You have a portfolio of properties, but do you have a sense of the income you generate from these properties over the course of a month or a year? How about your expenses? If an unforeseen expense pops up at your property, can your budget handle it? A budget projection answers all of these questions and helps you maintain a healthy and successful commercial property portfolio.

How Budget Projections Help You Manage Your Commercial Properties

Creating a budget projection for your portfolio of properties will help you work toward your financial goals. Most property owners have a sense of the revenue their properties bring in as well as the monthly cost to manage those properties. A budget projection puts concrete numbers to every income stream and expense over a 12-month period. Not only does this give you a more accurate understanding of the health of your portfolio, it provides milestones for you to hit as you work toward your financial goals.

Budget projections help you anticipate and mitigate problems that may arise later in the year. You can use the data from current and past months to manage loss of income or extra expenses down the road. Your budget projection may help you identify the best time to complete a building improvement or step up your marketing.

Use a Current Year or Rolling 12-Month Budget Projection

Budget projections should cover a 12-month period. Some property owners choose to project over a calendar or fiscal year (January to December or July to June, for example), while others choose to use a rolling 12-month model. Use your leasing calendar to decide which model will work best for you. Whatever model you choose, update the data monthly so you have a clear idea of the health of your portfolio and your projections stay accurate and realistic.

Include a Cash Forecast

A cash forecast is one element of a budget projection. Rather than income, a cash forecast projects your portfolio’s cash flow. Cash forecasts are extremely helpful in budgeting for maintenance, improvements, and unforeseen expenses. Some property owners break down cash forecasts weekly rather than monthly for an accurate look at cash flow for a particular month.

Consider Adding a 3- to 5-Year Outlook

While budget projections are most useful if they look at 12-month period, it can be helpful to use your budget projections to forecast a three- to five-year outlook. While you can’t predict the future, you can take an educated guess at your portfolio’s outlook based on past performance, market trends, and the strength of the economy. Thinking three to five years ahead can help you plan strategically and develop long-term financial goals for your portfolio.

Budget projections are an essential part of managing a successful commercial property portfolio. Clarity Commercial can help you put together a projection that helps you understand your revenue streams, expenses, and make a plan for future growth.

For help creating a budget projection for your portfolio, contact Clarity Commercial today.

For more information or to request a free estimate, visit their website at https://myclaritycommercial.com/ or give us a call at (952) 370-224-2699.

Affiliations & Credentials: We are proud members of IREM, CCIM and MNCAR along with various professional organizations and hold relevant certifications in the real estate management field. Our affiliations and credentials demonstrate our commitment to excellence and our ongoing efforts to stay up-to-date with industry best practices.

August 11, 2018

By Mel Schultz Commercial Property Management Property Management

Who should hire a property management firm?

Maybe, as a commercial property owner, you’ve considered hiring a property management firm but aren’t really sure what they’d do for you. Maybe, you’re becoming increasingly busy managing your properties and think a property management firm can take some work off your plate. Or, maybe you know you want to hand over the day-to-day activities of managing your commercial property, but aren’t really sure where to start.

We are going to discuss all of these points, but first, let’s define what a property management company can do for you.

Property Management Firm

If you were to Google, “What can a commercial property manager do for me,” you’d get an answer along the lines of, “A property management company will deal directly with your prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions.”

While some people purchase commercial real estate and look forward to dealing directly with prospects and tenants, other owners realize they’d rather hand those jobs off to someone else.

If that’s you, then it might make sense to hire a property management firm.

Who else might consider hiring a property management company? Here are five factors to take into account when determining that answer:

The number of properties you own. If you own one commercial property, you may think you don’t need a property management firm, but if you lack the training, you most likely are throwing money down the drain without one. And, the more properties you own and the more units each contain, the more likely you are to benefit from a property management company.
The amount of time you have. If you don’t have a lot of time to devote to being a landlord, and/or you’d rather spend your time building your portfolio by acquiring other investments, then a property management company is probably a good bet.
You don’t live nearby. If the properties you own are located in another city or state, or if you are a frequent traveler, having a property management firm will give you peace of mind.
Hands-on management is of no interest to you. If you bought your commercial properties as an investment and have no interest in running the day-to-day of the property, then definitely outsource those jobs to a property management firm.
You can afford the cost. Hiring a property management company is an attractive option if you can afford the fees. But, you also can lose money by not hiring a management company. Here are a few examples of how:

Undercharging Rent: Don’t want to do that!
Overcharging Rent: May be good in the short term, but that tenant will likely leave once they realize the cost, and potentially leave you with a vacant unit.
Emergency Remediation: Not knowing how to properly address damage WILL cost you. Property management companies regularly deal with emergency situations and understand what needs to happen to best mitigate damage and preserve your property. Professionals like Clarity Commercial are ready to handle these problems 24/7/365, in the most timely and effective way.
Maintenance: Management companies have a network of contractors who often provide discounted pricing as they are competing for business in that management company’s portfolio of many properties.
Tenant Build-outs/Improvements: Having trouble leasing your space? Maybe it needs some renovation work. Have you thought about providing a potential lessee with an allotment to renovate as they like? May seems odd, but some tenants are very willing to sign a long-term lease (20 to 30 years) IF they can get the right space. But, the numbers must add up, and there are many factors to consider. The experts at Clarity Commercial understand the market, factors involved, and can help guide you through the process to maximize profit.

The cost of having a management company is often offset with the savings they provide, ultimately giving the property owner a better long-term bottom line.

If you do decide to hire a property management company, you want to ensure you hire the right one. To learn more about how Clarity Commercial can help you and your properties, please contact us. We’d love to speak with you!

For more information or to request a free estimate, visit their website at https://myclaritycommercial.com/ or give us a call at (952) 370-224-2699.

Affiliations & Credentials: We are proud members of IREM, CCIM and MNCAR along with various professional organizations and hold relevant certifications in the real estate management field. Our affiliations and credentials demonstrate our commitment to excellence and our ongoing efforts to stay up-to-date with industry best practices.

Category: Commercial Property Management

Subcontractors You Want on Your Team

Building Maintenance Crew with Subcontractors

Mechanical Professionals

Landscaping and Snow Removal Crew

Window Washing Professionals

2021 Commercial Property Management Predictions

The Property Management Experience Will become More Digitized

Property Management Companies Will Rely More on Tenant Data for Commercial Property Management Predictions

Tenant Footprints May Shrink . . . or Expand

Safety Upgrades Will Remain a Top Concern

Property Manager: Choosing an On-site or Off-Site

Your Boots on the Ground at Your Property

Tenants’ First Point of Contact is the Property Manager

Review and Maintain Property Records

2021 Renovations and Property Improvements to Consider

COVID-19 Health and Safety Renovations

Sustainability and Property Improvements

Building a Realistic Budget Projection for Your Commercial Properties

How Budget Projections Help You Manage Your Commercial Properties

Use a Current Year or Rolling 12-Month Budget Projection

Include a Cash Forecast

Consider Adding a 3- to 5-Year Outlook

Who should hire a property management firm?

Property Management Firm

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Affiliations & Credentials

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