So many property managers graduate to commercial property from residential property. The fact of the matter is that the transition is very hard; the property type is different and the management style and requirements are quite unique.
If this sounds like a challenge that you are going through or about to take on board, rest assured that things do get better, however you will have a learning curve and the sooner you get started the better. Here are some tips for property managers from our Newsletter.
In commercial and retail property management the focus includes all of the following:
- Vacancy management and marketing
- Lease strategies
- Rent alternatives and solutions
- Tenant mix optimisation
- Tenant retention plans
- Property marketing of retail premises for better sales and customer numbers
- Tenant communication during occupancy and any other matters relating to critical dates
- Maintenance activities and specifications
- Essential services in the property
- Contractor controls and job specifications
- Income optimisation
- Expenditure controls and spending
- Property compliance
- Risk and insurance controls
- Outgoings optimisation and management
- Landlord reporting
- Property budgets and business plans
- Lease liabilities and legalities, etc
At the bottom of the scale, industrial property is quite basic, followed by office property that is a bit more complicated. At the top of the scale you will find retail property as the complex property type with the most issues to control and optimise.
The fees that you charge for your services should not be based just on a percentage of passing rent or income. The fees should be balanced against the amount of work that the property requires or takes up of your time.
It is very easy to lose money in the asset or property management part of your business simply because you have not fully understood the complexities of the property and the demands of the property owners. Review the property completely and then meet with the owners before you set your fees. Understand what the property and the owners require of you.
Whilst this part of the real estate business seems complex and challenging, it is actually the best part. You learn so much and perhaps even much more than sales and leasing people. You get to understand the strategies behind the operations of the asset and how you can improve them.
In saying all of this, you will be very busy in your career. On that basis you really must be a top performer as a business person that can motivate yourself and keep to a rigid time management process. The demands on you as an expert in the industry will see great variation in your average working day. It’s a great part of the industry; learn how to optimise it for your career.
If you want more commercial real estate property manager tips you can get them right here in our Newsletter.