In a commercial property market like that which we have today, the factors of property ownership and control get pretty challenging. For this reason your commercial and retail property managers become a key point of difference in your business. With the right marketing effort your property managers can be a business opportunity for you and the team overall. It all comes down to how you sell their services. (NB – you can get plenty of free commercial property management tips in ‘Snapshot’ right here)
All too often the property management side of commercial real estate agency tends to be the ‘poor cousin’ when it comes to support and drive. The ‘grand’ aspects of commissions generated from the leasing and sales agency team tends to take the focus of the business. All of that changes when the leasing and sales activity gets tougher; the property management side of the business becomes more important for the stability of the agency.
It is in property markets like this you never know where the next level of business will come from. The property managers can add a very different level of interaction and point of difference in many a sales or leasing listing opportunity.
So how could you sell the advantages of your specialist property managers to the clients that you serve? Here are some ideas:
- Lease optimization is a process of matching the tenant to the lease and the lease to the property. When this is done well it helps drive a better property performance for the landlord or property owner.
- Vacancy factors in a property should always be under control. That takes forward planning and effort on the part of the entire agency team. Look at all the leases and develop some strategies to handle upcoming lease expires or tenant changes. Keep close to your tenants so you can resolve vacancies faster.
- Income improvement can occur with better leases and rent strategies. Even though the leasing market may be a bit of a challenge at the moment, it is in markets like this that we can show real solutions to the landlord with rent reviews and options that suit their investment plan.
- Expenditure budgeting is a normal part of property performance. When the property market is difficult, the expenditure side of property performance will be under some pressure; that is where budgets are really helpful. They can allow for the timed aspects of bigger accounts and costs that hit the building owner during the year.
- Tenancy mix strategies can be applied to the entire property and the group of tenants. Clustering is really important for your mix and tenant leasing strategy.
- Landlord reporting will vary from property to property and location to location. The fact of the matter is that all property management reports should match the needs of the landlord. It is not a matter of sending out ‘generic’ financials at month end. There is much more to do if you want to provide a top property management and leasing solution for the clients that you serve.
- Property compliance is a term that relates to the compliance of the property with correct and current building and safety codes. It also includes the plant and equipment in the property that services the property overall. Most property managers do not have sufficient depth of awareness on these things so it is important to have consultants and maintenance contractors helping you understand the complex issues at play.
So this is some of the bigger issues that can give your property management services a real boost in quality and service. Choose the right people to join your property management team and ensure that they know what they are doing with the property type and the location. Property management is not an experiment. It is a very complex business process that is applied to a valuable property asset.