Critical Systems for a New Property Manager to Take Control of an Investment Property
Commercial and retail property management systems are very important in the investment performance of an asset. The ‘handover process’ similarly so.
Property managers of commercial and retail buildings today are very skillful and should be so; they have to know so much about property operations, lease documentation, tenant selection and management, and asset performance. (NB you can get our free commercial real estate broker course here)
Common Errors of Self Management
So many times you will see a landlord ‘self manage’ their property just to save money and management fees. Why would an investor or landlord risk the performance of an investment building in this way? Are they that clever that they really understand the bigger strategies behind tenant mix, lease documentation, rental recoveries, and expenditure control? Perhaps they think that the management process is simply just a matter of collecting rent. How wrong could they be!
Most property investors are very ‘ordinary’ and inexperienced when it comes to understanding and directing asset performance. Saving money on property management fees is a false economy and will threaten the investment performance. A good property manager can add considerable strategy and value to an asset over time; they have the tools, the systems, and they have the knowledge to do that.
Special Processes
The property management process at the levels of a moderate to large property are very special in so many ways. So many things have to be investigated, covered and controlled. Here are some ideas to help professional property managers with the ‘handover process’ at the time of taking up a new investment property. The asset performance and investigation systems are explained in the report. When you know the real estate facts, you can understand how to improve the asset over time.
Here is the report:
