March 11, 2026
Commercial Property Management Is Basically Free (Here’s Why)
Commercial property management is basically free.
It sounds unrealistic.
But in many commercial leases, it actually can be.
In this episode, Aviva Sonenreich explains why professional commercial property management often costs landlords nothing — because in many triple-net (NNN) leases, tenants pay the management fee as part of the operating expenses.
Yet many commercial property owners still choose to self-manage. Over time, that decision can quietly reduce the value of the asset.
Professional property management isn’t just about collecting rent or paying invoices — it’s about protecting the property’s long-term income and value.
In this episode, you'll learn:
- Why commercial property management often costs landlords nothing in NNN leases
- How management fees are typically incorporated into operating expenses
- Why professional property managers help protect a building’s net operating income (NOI)
- The hidden risks of self-managing commercial real estate
- Why sophisticated property owners treat property management as an asset preservation strategy
- How property managers act as a professional buffer between landlords and tenants
If you own commercial property and want to protect its long-term value, this is an important concept to understand.
1
00:00:00,040 --> 00:00:02,520
Are you considering commercial
property management?
2
00:00:03,000 --> 00:00:08,920
If so, this video is for you.
I realize I could make a video
3
00:00:08,920 --> 00:00:11,720
today about what a property
manager does.
4
00:00:11,720 --> 00:00:14,840
That's really basic.
Today I want to get into why you
5
00:00:14,840 --> 00:00:18,000
need a commercial property
manager and how it benefits you.
6
00:00:18,200 --> 00:00:21,640
Poor to no property management
on your asset will silently
7
00:00:21,640 --> 00:00:26,360
erode your assets value faster
than you can say what the
8
00:00:26,720 --> 00:00:29,160
tapping.
This will cost you thousands
9
00:00:29,160 --> 00:00:32,920
today and hundreds of thousands,
if not more tomorrow.
10
00:00:33,800 --> 00:00:37,200
Story time.
In 2017, I found a property off
11
00:00:37,200 --> 00:00:40,120
market that ownership was
looking to sell.
12
00:00:40,120 --> 00:00:44,680
The main partner, we'll call him
the general partner, had passed.
13
00:00:44,680 --> 00:00:48,560
He was managing the property and
as the family was picking up the
14
00:00:48,560 --> 00:00:51,640
pieces of his passing, they
needed to sell this asset.
15
00:00:51,760 --> 00:00:54,640
That's where we came in.
We closed the deal and after a
16
00:00:54,640 --> 00:00:57,120
few weeks the buyer starts
getting checks in the mail.
17
00:00:57,120 --> 00:01:00,240
There was an additional stream
of income on this building that
18
00:01:00,240 --> 00:01:03,400
none of the living partners knew
had existed.
19
00:01:03,400 --> 00:01:06,640
So what happened?
The managing partner, who was
20
00:01:06,640 --> 00:01:11,000
doubling as the property
manager, had secretly signed a
21
00:01:11,000 --> 00:01:16,040
lease to an oil and gas company
and didn't tell his family or
22
00:01:16,080 --> 00:01:18,160
other partners.
I can't make this up, this is
23
00:01:18,160 --> 00:01:20,920
crazy.
Upon closing, the lease to the
24
00:01:20,920 --> 00:01:25,320
oil and gas company, which no
one knew about, transferred to
25
00:01:25,320 --> 00:01:28,840
the buyer.
You see minerals on a property,
26
00:01:28,840 --> 00:01:33,240
subsurface minerals are a
completely additional asset that
27
00:01:33,240 --> 00:01:35,920
can be sold with or apart from
the property.
28
00:01:35,920 --> 00:01:40,400
But the general partner
consummated this lease without
29
00:01:40,400 --> 00:01:42,960
telling any of his other
partners and he took it to the
30
00:01:42,960 --> 00:01:45,800
grave.
So when he died, nobody knew
31
00:01:45,800 --> 00:01:50,640
that this existing oil and gas
lease and additional income
32
00:01:50,640 --> 00:01:54,600
existed on the property.
Had the living owners known that
33
00:01:54,600 --> 00:01:58,240
there were additional revenue
stream coming from the property,
34
00:01:58,480 --> 00:02:02,640
they could have gotten hundreds
of thousands of more dollars on
35
00:02:02,640 --> 00:02:04,880
the sale.
The owner and property manager
36
00:02:04,880 --> 00:02:07,400
who passed had been crooked and
he.
37
00:02:08,039 --> 00:02:10,919
Sure, it was great for the
buyer, but for the seller, for
38
00:02:10,919 --> 00:02:14,560
you, the owner, that's
devastating and devastatingly
39
00:02:14,560 --> 00:02:17,000
expensive.
Look, I know the objections.
40
00:02:17,000 --> 00:02:20,680
I don't have a property manager.
I don't need a property manager.
41
00:02:20,840 --> 00:02:23,560
I don't have oil and gas.
Here's another story.
42
00:02:23,680 --> 00:02:26,320
A friend of mine's parents
passed and he inherited a
43
00:02:26,320 --> 00:02:27,920
property.
He didn't have any property
44
00:02:27,920 --> 00:02:30,920
management at the time.
When I tell you the moment the
45
00:02:30,920 --> 00:02:35,920
tenant realized that they now
had a kid as a landlord, boom,
46
00:02:36,080 --> 00:02:39,040
rent stopped getting paid.
They just threw their hands up
47
00:02:39,040 --> 00:02:42,200
and said we're not paying Month
after month of this kid trying
48
00:02:42,200 --> 00:02:44,840
to collect rent and the tenant
just lying.
49
00:02:45,160 --> 00:02:49,200
Wound up in a really messy
lawsuit and eventual eviction of
50
00:02:49,200 --> 00:02:51,880
the tenant.
But it cost my friend hundreds
51
00:02:51,880 --> 00:02:55,520
of thousands of dollars.
It cost the tenants an insane
52
00:02:55,520 --> 00:02:58,400
amount of money.
And if you don't have a property
53
00:02:58,400 --> 00:03:02,240
manager to act as a buffer
between you and your tenants,
54
00:03:02,440 --> 00:03:06,200
you could very well either put
yourself in this position or
55
00:03:06,200 --> 00:03:09,160
those inheriting your property.
We don't want people to inherit
56
00:03:09,160 --> 00:03:11,840
messes.
Property management is so much
57
00:03:11,840 --> 00:03:15,080
more than invoicing and bill
pay.
58
00:03:15,720 --> 00:03:18,880
It's a buffer between the
landlord and the tenant.
59
00:03:19,040 --> 00:03:21,640
The best part?
In a triple net lease, the
60
00:03:21,640 --> 00:03:24,520
tenant actually pays for the
triple Nets.
61
00:03:24,560 --> 00:03:27,280
It is industry standard in a
triple net lease that the
62
00:03:27,520 --> 00:03:30,720
management fee paid to the
management company is
63
00:03:30,720 --> 00:03:34,200
incorporated into the triple
Nets and paid for by the
64
00:03:34,200 --> 00:03:36,240
tenants.
It almost sounds too good to be
65
00:03:36,240 --> 00:03:39,280
true, and it's not.
It's just the industry standard.
66
00:03:39,560 --> 00:03:43,040
Sophisticated property owners
want a strategic and discipline
67
00:03:43,280 --> 00:03:49,080
approach to preserving their
asset in the immediate and long
68
00:03:49,080 --> 00:03:51,160
ride.
We preserve risk today when it
69
00:03:51,160 --> 00:03:54,880
comes to rent, and we preserve
risk for tomorrow when it comes
70
00:03:54,880 --> 00:03:57,640
time to sell.
I don't want you to end up in a
71
00:03:57,640 --> 00:04:01,120
scenario like the two property
owners I just discussed whose
72
00:04:01,120 --> 00:04:04,600
asset income was tremendously
affected by either a lack of
73
00:04:04,600 --> 00:04:07,840
property management or poor
property management in general.
74
00:04:07,840 --> 00:04:10,520
If you own a commercial property
in Colorado, the question should
75
00:04:10,520 --> 00:04:13,480
not be whether or not you have
property management management,
76
00:04:13,480 --> 00:04:17,640
but rather whether or not your
property manager is preserving
77
00:04:17,640 --> 00:04:21,920
your precious capital.
If you're not sure, they're my
78
00:04:21,920 --> 00:04:29,000
friends is the risk.
That's a wrap for this week on
79
00:04:29,000 --> 00:04:32,240
commercial real estate secrets.
If you found value.
80
00:04:32,520 --> 00:04:36,680
Do us a favor and subscribe,
leave a review and share it with
81
00:04:36,680 --> 00:04:39,080
a fellow commercial real estate
lover.
82
00:04:39,760 --> 00:04:42,320
For brokerage services or to
connect, visit.
83
00:04:42,320 --> 00:04:46,600
Warehouse Hotline com I'm Aviva.
We'll see you next week.
00:00:00,040 --> 00:00:02,520
Are you considering commercial
property management?
2
00:00:03,000 --> 00:00:08,920
If so, this video is for you.
I realize I could make a video
3
00:00:08,920 --> 00:00:11,720
today about what a property
manager does.
4
00:00:11,720 --> 00:00:14,840
That's really basic.
Today I want to get into why you
5
00:00:14,840 --> 00:00:18,000
need a commercial property
manager and how it benefits you.
6
00:00:18,200 --> 00:00:21,640
Poor to no property management
on your asset will silently
7
00:00:21,640 --> 00:00:26,360
erode your assets value faster
than you can say what the
8
00:00:26,720 --> 00:00:29,160
tapping.
This will cost you thousands
9
00:00:29,160 --> 00:00:32,920
today and hundreds of thousands,
if not more tomorrow.
10
00:00:33,800 --> 00:00:37,200
Story time.
In 2017, I found a property off
11
00:00:37,200 --> 00:00:40,120
market that ownership was
looking to sell.
12
00:00:40,120 --> 00:00:44,680
The main partner, we'll call him
the general partner, had passed.
13
00:00:44,680 --> 00:00:48,560
He was managing the property and
as the family was picking up the
14
00:00:48,560 --> 00:00:51,640
pieces of his passing, they
needed to sell this asset.
15
00:00:51,760 --> 00:00:54,640
That's where we came in.
We closed the deal and after a
16
00:00:54,640 --> 00:00:57,120
few weeks the buyer starts
getting checks in the mail.
17
00:00:57,120 --> 00:01:00,240
There was an additional stream
of income on this building that
18
00:01:00,240 --> 00:01:03,400
none of the living partners knew
had existed.
19
00:01:03,400 --> 00:01:06,640
So what happened?
The managing partner, who was
20
00:01:06,640 --> 00:01:11,000
doubling as the property
manager, had secretly signed a
21
00:01:11,000 --> 00:01:16,040
lease to an oil and gas company
and didn't tell his family or
22
00:01:16,080 --> 00:01:18,160
other partners.
I can't make this up, this is
23
00:01:18,160 --> 00:01:20,920
crazy.
Upon closing, the lease to the
24
00:01:20,920 --> 00:01:25,320
oil and gas company, which no
one knew about, transferred to
25
00:01:25,320 --> 00:01:28,840
the buyer.
You see minerals on a property,
26
00:01:28,840 --> 00:01:33,240
subsurface minerals are a
completely additional asset that
27
00:01:33,240 --> 00:01:35,920
can be sold with or apart from
the property.
28
00:01:35,920 --> 00:01:40,400
But the general partner
consummated this lease without
29
00:01:40,400 --> 00:01:42,960
telling any of his other
partners and he took it to the
30
00:01:42,960 --> 00:01:45,800
grave.
So when he died, nobody knew
31
00:01:45,800 --> 00:01:50,640
that this existing oil and gas
lease and additional income
32
00:01:50,640 --> 00:01:54,600
existed on the property.
Had the living owners known that
33
00:01:54,600 --> 00:01:58,240
there were additional revenue
stream coming from the property,
34
00:01:58,480 --> 00:02:02,640
they could have gotten hundreds
of thousands of more dollars on
35
00:02:02,640 --> 00:02:04,880
the sale.
The owner and property manager
36
00:02:04,880 --> 00:02:07,400
who passed had been crooked and
he.
37
00:02:08,039 --> 00:02:10,919
Sure, it was great for the
buyer, but for the seller, for
38
00:02:10,919 --> 00:02:14,560
you, the owner, that's
devastating and devastatingly
39
00:02:14,560 --> 00:02:17,000
expensive.
Look, I know the objections.
40
00:02:17,000 --> 00:02:20,680
I don't have a property manager.
I don't need a property manager.
41
00:02:20,840 --> 00:02:23,560
I don't have oil and gas.
Here's another story.
42
00:02:23,680 --> 00:02:26,320
A friend of mine's parents
passed and he inherited a
43
00:02:26,320 --> 00:02:27,920
property.
He didn't have any property
44
00:02:27,920 --> 00:02:30,920
management at the time.
When I tell you the moment the
45
00:02:30,920 --> 00:02:35,920
tenant realized that they now
had a kid as a landlord, boom,
46
00:02:36,080 --> 00:02:39,040
rent stopped getting paid.
They just threw their hands up
47
00:02:39,040 --> 00:02:42,200
and said we're not paying Month
after month of this kid trying
48
00:02:42,200 --> 00:02:44,840
to collect rent and the tenant
just lying.
49
00:02:45,160 --> 00:02:49,200
Wound up in a really messy
lawsuit and eventual eviction of
50
00:02:49,200 --> 00:02:51,880
the tenant.
But it cost my friend hundreds
51
00:02:51,880 --> 00:02:55,520
of thousands of dollars.
It cost the tenants an insane
52
00:02:55,520 --> 00:02:58,400
amount of money.
And if you don't have a property
53
00:02:58,400 --> 00:03:02,240
manager to act as a buffer
between you and your tenants,
54
00:03:02,440 --> 00:03:06,200
you could very well either put
yourself in this position or
55
00:03:06,200 --> 00:03:09,160
those inheriting your property.
We don't want people to inherit
56
00:03:09,160 --> 00:03:11,840
messes.
Property management is so much
57
00:03:11,840 --> 00:03:15,080
more than invoicing and bill
pay.
58
00:03:15,720 --> 00:03:18,880
It's a buffer between the
landlord and the tenant.
59
00:03:19,040 --> 00:03:21,640
The best part?
In a triple net lease, the
60
00:03:21,640 --> 00:03:24,520
tenant actually pays for the
triple Nets.
61
00:03:24,560 --> 00:03:27,280
It is industry standard in a
triple net lease that the
62
00:03:27,520 --> 00:03:30,720
management fee paid to the
management company is
63
00:03:30,720 --> 00:03:34,200
incorporated into the triple
Nets and paid for by the
64
00:03:34,200 --> 00:03:36,240
tenants.
It almost sounds too good to be
65
00:03:36,240 --> 00:03:39,280
true, and it's not.
It's just the industry standard.
66
00:03:39,560 --> 00:03:43,040
Sophisticated property owners
want a strategic and discipline
67
00:03:43,280 --> 00:03:49,080
approach to preserving their
asset in the immediate and long
68
00:03:49,080 --> 00:03:51,160
ride.
We preserve risk today when it
69
00:03:51,160 --> 00:03:54,880
comes to rent, and we preserve
risk for tomorrow when it comes
70
00:03:54,880 --> 00:03:57,640
time to sell.
I don't want you to end up in a
71
00:03:57,640 --> 00:04:01,120
scenario like the two property
owners I just discussed whose
72
00:04:01,120 --> 00:04:04,600
asset income was tremendously
affected by either a lack of
73
00:04:04,600 --> 00:04:07,840
property management or poor
property management in general.
74
00:04:07,840 --> 00:04:10,520
If you own a commercial property
in Colorado, the question should
75
00:04:10,520 --> 00:04:13,480
not be whether or not you have
property management management,
76
00:04:13,480 --> 00:04:17,640
but rather whether or not your
property manager is preserving
77
00:04:17,640 --> 00:04:21,920
your precious capital.
If you're not sure, they're my
78
00:04:21,920 --> 00:04:29,000
friends is the risk.
That's a wrap for this week on
79
00:04:29,000 --> 00:04:32,240
commercial real estate secrets.
If you found value.
80
00:04:32,520 --> 00:04:36,680
Do us a favor and subscribe,
leave a review and share it with
81
00:04:36,680 --> 00:04:39,080
a fellow commercial real estate
lover.
82
00:04:39,760 --> 00:04:42,320
For brokerage services or to
connect, visit.
83
00:04:42,320 --> 00:04:46,600
Warehouse Hotline com I'm Aviva.
We'll see you next week.
