In this property market where deals are sometimes harder to put together, the value of the commercial property manager is high in maintaining and directing a sound and good level of commercial property performance.
A well-managed property will always attract better buyer interest at the time of sale, or tenant interest at the time of lease. So many ‘owner managed’ properties reflect and show the poor asset management skills of the owners.
Over time you see many owner managed properties become distressed assets. Unfortunately, the property owners without real property management experience only focus on net income and keeping the property occupied; on that basis, the property can and usually does deteriorate. Those inexperienced property owners typically overlook the real skills that surround a successful property performance. So in comes the professional property manager working for a specialised commercial or retail real estate agency.
Essential Property Manager Skills for Today
The property manager skills needed in this market are quite specific. Here are the main ones:
- Lease management of rent reviews, options, make good provisions, tenant covenants, landlord covenants, and renewals.
- Tenant mix optimisation to build the property on the local demographic of customers and the community
- Maintenance management and cost optimisation that matches the benchmarks of relevant property types
- Outgoings management to a budget and lifecycle plan for the property
- Landlord reports and communications processes that keep them up to date on income, expenditure, vacancies, leases, building codes and compliances.
- Energy efficiencies for the best property performance
- Marketing of vacant tenancies into the local business community.
A skilful manager brings many strategies and controls to the landlord’s property; whilst fees for service are always involved in the net result for the property.