Commercial property management listings are something that many agencies will look for. The fact of the matter is that a property management client or appointment will provide significant opportunities in leasing and sales for the agency at some stage in the future. In the meantime, a commercial property management appointment will provide reasonable fees to the agency providing you are offering the right type of services in a professional way.
A sizeable portfolio of quality commercial and retail properties will give strength to the real estate agency when it comes to goodwill and value of the business. An agency with a reasonable rent roll is worth a lot more than one without. It is also the case that the rent roll is a saleable commodity at any time to help real estate business viability.
It should be said that property managers should be chosen and well skilled for the property type that they work on. Managing an asset is quite a skillful process. It requires knowledge when it comes to things like leasing strategies, tenant retention, building operational costs, maintenance activities, tenant retention, financial management, and landlord contact.
I will just make a small note here regards commercial real estate agencies purchasing rent rolls. It is the quality and the stability of the rent roll that you really want. You need to know that the properties under management have been correctly controlled and are primed for ongoing performance.
A weak or unstable commercial real estate rent roll is usually more trouble than it’s worth. You would not pay good money for a rent roll of this type. For a difficult and unstable rent roll you will usually have the landlords and tenants that are volatile and threatening. In that case you will not want a pay for such a rent roll; it is far better to singularly target these weaker properties and convert them to your business when situations allow.
Here are some other rules that should apply to the growth of your commercial real estate management portfolio:
- Select quality properties in good locations. They will be easier to lease when the time arises.
- Select property owners and portfolio owners that have the ability to own and manage a number of properties. Over time they will need further assistance from professional people such as yourself.
- Leasing and sales opportunities will always give you some spin off towards property management. Asking the right questions at the right time will allow you to grab this new opportunity for business.
- Quality and professionalism should be the underpinning factors of your commercial and retail property management department. This then says that you should not discount fees and as a consequence provide low quality services. Over time, poor property management activities and low quality management staff will do more to destroy your portfolio and agency than strengthen it.
- Develop a strategy of tenant retention and tenant mix analysis. These are specialist skills that can be offered for a certain fee to those owners that currently manage their own properties. Providing you do a good job for these specialized services, you can convert the business to a full and comprehensive property management appointment over time.
Every sales and leasing person in your commercial agency should be comfortable in talking about and offering property management services. If you have the right staff within your business, the diversity of services will strengthen your operations over time.