It is a well-known fact that a good commercial property management business and portfolio will boost many other brokerage opportunities including sales and leasing activity. That being said, it takes time to create your list of property management clients and quality properties.
So let’s set one rule ‘into concrete’; a good property management base of clients and listings will generate regular fee income for the brokerage and feed listings back to the sales and leasing team at the right time in the property lifecycle.
Think about these questions:
- How many managements will you want to attract and retain?
- What types of properties should you manage in your town or city?
- What types of clients should you serve?
- What services will your clients require?
- How can you attract the right people to manage your properties effectively and correctly?
- What fees will you charge?
- How will you win more property management business?
The last question is the most important. Exactly how will you find more property management business? It’s not an easy process as many of us will know.
What are the Reasons for a Property Investor to Seek Professional Property Management?
There has to be a reason for a landlord to seek professional property management services or change property manager. The most common reasons are below:
- The landlord lacks the time or professional skill to get involved in the daily issues of tenant mix, lease management, rent collection, and documentation.
- The previous property manager was a ‘poor performer’ and made too many mistakes.
- The property is particularly challenging and it will require outside help to take it forward.
- The investor is acquiring more property and no longer has the time to commit to the management process.
- The investor is buying another property and wants to focus on the bigger picture and not the ‘day to day’ issues.
- The property manager is recognised as a top performer in the industry and manages some key properties locally for high quality clients.
- The tenant mix is a problem and will require special attention to fix vacancies and rental problems.
- The market rent and net income for the property are out of balance for a property of its type locally.
- The property lacks a business plan and financial direction.
All and any of these things are good reasons to change or appoint a property manager. Look for the local properties that are under pressure of change. This also says that the sales and leasing team in any brokerage should work hand in hand with the property management part of the business. Get your senior property managers involved in any listings that have property management potential. Pitch and present your services as a complete and comprehensively skilled brokerage.