Most commercial tenants think of property management and say “thank goodness the landlord takes care of that!” That is largely true in multi-tenant buildings but to think it is entirely so is to put your financial bottom line into the hands of the landlord or property manager – at best a well-intentioned stranger and at worst a totally indifferent one. While it is true that a tenant in a large class A office tower does not have to perform janitorial services or maintain the building’s heating and air conditioning systems, they do assume significant repair responsibilities inside of their premises and have important administrative duties relating to property management.
Think about it: for every bill you receive, whose responsibility is it to review it for accuracy and actually cut the check? There is not a lot of review required when you get a utility or cable TV bill at home, but what about that annual operating expense reconciliation letter you get from the landlord? Does it accurately reflect the terms of your lease; in particular, the special operating expense lease provisions a well-informed real estate broker should have negotiated on your behalf?
80% of property management is shouldered by the landlord, but 20% is the tenant looking out for their own interests.
Who is looking out for yours?