Thanks in advance for any suggestions you have to my question.
I'm from California and currently own multiple residential real estate investments locally. I am a licensed real estate broker and manage all my properties. I am in contract for my first commercial property in Reno Nevada. The property is a single building, single tenant NNN lease.
My question is do you think its necessary to hire a property manager for this property?
Being new to commercial and NNN leases, I'm not sure how to gauge the amount of work that is needed by the landlord in a NNN lease situation. Added to that, the property is out of state so being "hands on" isn't really an option.
The lease stipulates the landlord is responsible for the walls and everything outside the walls except for the glass. Additionally the landlord is responsible for the heating and AC unit.
Any suggestions or words of wisdom would be greatly appreciated!
I don't think you really need to hire someone to manage. There's no management to do... no CAM adjustments or anything. When you say outside the walls, you mean the structure of the building, right? Not like parking and landscaping and garbage removal?
@Darren Ito no better way to learn than doing! If you handle it yourself, you'll be able to vet and understand what a future PM company is doing with your properties.
It’s a triple net lease, you don’t need a PM company.
@Jessica Zolotorofe You are correct, structure only. Tenant pays for all maintenance of landscaping, parking lot, trash etc. Thank you everyone for your advice!
Darren Ito said this "The lease stipulates the landlord is responsible for the walls and everything outside the walls except for the glass. Additionally the landlord is responsible for the heating and AC unit."
You DO NOT have a triple net lease. According to what you have posted that is a NN lease. There will be certain requirements as a landlord you are required to meet per the lease.
Does the lease cover any property management or an admin fee?
If it does not you will either be doing yourself or paying an admin fee/management and will eat into returns.
Are you responsible for the roof,parking lot also?
Have you read the lease word for word and all amendments or just the flyer or lease abstract the seller/ listing broker put together?
All I do is retail for clients nationally. I look at about 500 to 1,000 properties a week. How many I look at depends on time of the year and properties released to the market and off market.
You need to be CRYSTAL CLEAR on what you are buying or you could lose money.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing