The people that you employ in your commercial property management division should be specially chosen for their knowledge and skills; inexperienced people create issues in client service and property performance. That focus on people means a ‘solid track record’ in handling investment decisions, tenants, and landlord related matters. Good property managers can add considerable value to the client investment process. (NB – you can get our commercial property management tips right here in ‘Snapshot’)
Typically, a commercial or retail property manager is an entirely different person in business character and work capability than that of a sales or leasing person. They work harder and longer on the ‘bigger picture’ of commercial real estate. That being said, they are also usually highly skilled in business processes and are deeply ‘investment aware’. They know how to take an investment property and improve it through a number of strategies and recommendations. They can show a client the way forward when times are difficult.
The Commercial Property Management Priority
When you fully accept and understand the special roles of your people in property management you can then get on with improving your services and portfolio with the right clients and the right properties.
Here are some valid and proven reasons why a brokerage should ‘perfect their property management services’:
- Client relationships – Any property under management will usually be with you and the brokerage for months if not years of activity (assuming you don’t make management mistakes). During that time, you can get to know the client and their investment needs in a comprehensive way. You can then help the client at the earliest stages of property or investment change or churn.
- Referrals – When you comprehensively know the clients that you serve, it is very easy to get more referral business from them over time. Successful business services and processes lead to better referral opportunities. Your current clients will know other people interested in commercial real estate, and on that basis are therefore the foundation for you to grow your real estate services and market share. Start your property management business from the people that you currently service professionally; move your influence and activities out from that ‘circle of contact’.
- Stable income from management fees – A property portfolio can produce stable and growing incomes that underpin sales and leasing commissions in your business. Given that the property market changes so much during the year, your commission earnings each month can be strengthened with a good quality property management business. Choose your clients and managed properties with care.
- Control of listing stock – Eventually (in months or years) a managed property is likely to be a sale listing. When that happens you are the first agent of choice to market the listing; you have the attention and awareness the client and know all of their priorities. That is a massive advantage for your property business if you use it well.
- Control of client decisions – Trust is a factor in commercial real estate brokerage that should not be overlooked as a business tool and advantage. As the client gets to know your property management team and all your people, the levels of trust can grow on either side of the business relationship. Eventually that trust will likely help you control and direct the client in times of property decision and opportunity.
So there are many good reasons why you should build a professional property management service. Find the best people to work with your clients and get the situation of client and property service underway. Build a strong and comprehensive commercial property portfolio that contains the better buildings and the better clients.