MMACVAUGH& COMPANY

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What should an owner expect from a commercial property manager?

A commercial property manager should provide reliable operational attention, disciplined property and financial records, clear communication, and defined authority for decisions and spending. The exact responsibilities belong in the management agreement and should reflect the property, its leases, its tenants, and the owner's objectives.

A useful evaluation asks not only what services are listed, but how information moves from tenants and vendors to the manager—and from the manager to ownership.

Day-to-day property operations

The operating scope may include tenant communication, maintenance coordination, vendor access, recurring services, inspections, and response to urgent conditions. An owner should understand:

  • How tenants submit questions and maintenance requests
  • Who responds and how urgent issues are escalated
  • How vendors are selected, authorized, and monitored
  • Which work requires owner approval
  • How after-hours and emergency situations are handled
  • How open work is documented and followed through

The agreement should make clear which services are included and which require separate authorization or compensation.

Rent and lease administration

Commercial leases create dates, obligations, and calculations that need continuing attention. Depending on the assignment, management may track:

  • Rent invoices and receipts
  • Scheduled rent changes
  • Deposits and credits
  • Lease commencement and expiration dates
  • Options and notice dates
  • Insurance requirements
  • Operating-expense estimates and reconciliations
  • Tenant statements and open balances

The owner should ask how the manager records the governing lease information, handles exceptions, and preserves an audit trail when a charge or payment needs correction.

Property accounting and cash visibility

An owner should know how property activity is recorded and reviewed. Relevant questions include:

  • Which bank accounts and accounting records are within the manager's scope?
  • How are tenant payments matched to charges?
  • How are vendor invoices reviewed and paid?
  • How are deposits, credits, and unapplied cash handled?
  • How are budgets and actual results compared?
  • What supporting records accompany the owner's reports?
  • Who can approve spending and at what threshold?

Software can improve visibility, but a dashboard is only as reliable as the records and operating process behind it.

Owner reporting

The reporting package should match the property and management agreement. Before hiring a manager, ask:

  • Which reports will be delivered and how often?
  • When is the reporting period considered complete?
  • Can the owner see open receivables, income and expenses, cash activity, and major operational issues?
  • How are unusual items explained?
  • Can the owner reach the underlying invoice, statement, lease reference, or other supporting record when appropriate?
  • How are upcoming decisions and deadlines surfaced?

Improvements and larger projects

Routine management and construction or capital work may require different authority, oversight, and fees. The management agreement should address how proposed work is scoped, bid, approved, supervised, documented, and reported.

The owner should also understand how management coordinates with leasing or sale activity without assuming those brokerage services are automatically included.

Changing property managers

A transition should account for more than a new tenant contact. A property-specific handoff may include:

  • Leases, amendments, and abstracts
  • Tenant and vendor contacts
  • Current balances, deposits, and open items
  • Bank and accounting records within the agreed scope
  • Service contracts and insurance information
  • Keys, access credentials, and building procedures
  • Open maintenance and improvement work
  • Prior reports, budgets, and reconciliations
  • Upcoming lease dates and owner decisions

Questions to ask before hiring a manager

  1. What property types and assignments can you substantiate experience with?
  2. Who will handle the property day to day?
  3. What is included in the management agreement?
  4. What requires separate approval or fees?
  5. How are tenant, maintenance, accounting, and emergency issues handled?
  6. What reports and supporting information will ownership receive?
  7. What authority and spending thresholds will the manager have?
  8. How will existing records and open work be transitioned?
  9. How are management and brokerage responsibilities separated?
  10. How and when can either party end the arrangement and transfer the records?

Discuss the property

MacVaugh & Company's current public management scope includes building operations, maintenance coordination, tenant communication, property accounting, oversight of improvements, and owner reporting.

To begin a useful conversation, provide the property address and type, approximate size and tenant count, present management arrangement, immediate operational or reporting concerns, and desired timing.

The exact scope, authority, fees, and responsibilities depend on the management agreement. This page does not promise a particular result or state that every listed activity is included in every assignment.