A rent roll in commercial real estate is a valuable part of the real estate brokerage business. From the rent roll you can build market share, sales opportunities and leasing income. The growth of the property management portfolio should be encouraged to occur as a priority in any real estate brokerage.
Whilst it is easy to see why you should do this, the gathering of property management clients and properties normally takes time. You must have a strategy to the process. You must also have the right people to help you with the property management processes and controls.
Commercial Property Management is quite a special process. The same can be said for Shopping Centre Management. When you are working with the larger and more complex properties, the systems and controls are quite special when it comes to tenant control, rental collection, and lease management. On top of that there are maintenance issues to keep on track within the plans of property performance.
So how can you build a rent roll faster for your commercial real estate brokerage? Try some of these things:
- When you sell a property to a property investor, it is the best time to ask them about property management services. They may require assistance to keep the property performing to their plans and targets.
- Whilst there is a fee for property management services, many leases allow the recovery of those costs from the outgoings recovery from the tenant. In other words the fee charged is not necessarily a cost on the landlord. Have a look at the leases for a property to understand if that is the case. It gives you a point of negotiation when it comes to selling your services.
- From time to time you will find new property developments under consideration in your town or city. They are prime opportunities for new business. The property investor or developer is likely to need leasing and property management help in building the tenancy mix.
- As a real estate brokerage, the database that you have of tenants and businesses locally will be of value and interest to the clients and investors that you serve. Keep your tenant records up to date and understand what tenants are looking for by way of new premises. Find the right properties to lease. One thing can lead to another and potentially a new property management client.
- A property with a lot of vacancies will be a drain on cash flow for a property investor. Whilst there are reasons for a vacancy, the landlord needs a tenant. If you find a tenant for the property, the next stage of discussion should centre on property management services.
- Help property investors by offering specialist services that can lead into a full property management service. You could for example provide tenant mix advice, tenant mix strategies, lease management, lease negotiation, or tenant retention planning. One simple service can lead to a comprehensive property management offering.
So there are a number of things that you can do here to build your rent roll in commercial real estate. Provide real value to the clients that you serve. Help them improve their income and tenant mix. That’s how you build a rent roll.