Basic Ideas to Convert More Commercial Property Management Proposals
A commercial property management proposal is something that should never be generically structured and presented. Every property to be managed requires deep investigation before the fee is set and the proposal to manage is created.
Understand the property fully before you put the strategy document to the client. Ensure that you make clear recommendations and not some bland generic statements as part of presenting your ideas.
Key Proposal Issues to Understand
Properties require a real focus to resolve problems when they first come in as management appointments. They will usually be issues with any or all of the following:
- Vacancy factors
- Rental payments
- Arrears collections
- Tenant issues
- Lease documentation
- Property upgrades
- Reporting requirements
- Maintenance situations
So the proposal that you put together for any property to be managed should recognise the challenges to be addressed in the asset, and the fee then structured accordingly. A new property will require intense time involvement of the property manager for the first months to get things under control.
5 Basic Proposal Ideas that Can Work
To help you win more commercial property management proposals and presentations, here are some effective ideas to use. They have been well proven in proposals to manage major assets over the years:
- Do a contractor review – Some of the contractors in the property should be assessed for relevance, experience, and costs to do the required work. You could re-tender a number of maintenance requirements to understand if you are getting the best services at a reasonable cost.
- Risk and liability – The operation of every building will bring with it factors of risk. Tenants in a building and customers visiting the property are to be protected from building generated injury and risk. Get a full risk and liability assessment done when the property is first to be managed and then get the report updated every 6 months.
- Lease audit – If you have lots of tenants in a property there will be a requirement to check the leases against the tenancy mix, the tenancy schedule, and the areas occupied. Cross reference everything to ensure that all records are correct.
- Market rental assessment – The property market changes throughout the year and the impact of vacancies will shift incentives and market rental. How can you strengthen the market rental in your property? Show the client how you believe you can underpin market rental and optimise the tenant mix over time.
- Tenant Retention Plan – In any property with a large number of tenants it is wise and perhaps even essential to put in place a tenant retention plan. When you establish the document, key decisions can be made early with rental levels, vacancies, existing tenants, lease negotiations, and upcoming tenancy movements.
A commercial property management proposal does not need to be complex but it does need to be specific to important issues, and applicable to the property to be managed. Establish a timeline for all of these things to happen and show the client exactly how you can improve the property over time.
