So often we see landlords choose commercial or retail property managers to manage their property with little or no regard to the experience of the people doing the actual management work. Invariably the choice of property manager has been made for financial reasons and not experience.
In this property market you get what you pay for, but unfortunately, the impact on the property can be significant and the damage to the tenant mix or property income significant and long term.
There are far more inexperienced commercial property managers out there than experienced ones. Choosing the wrong property manager is a recipe for disaster. When it comes to commercial and retail property, real experience is needed and particularly so if the property is complex and contains many tenants.
How Experience Counts in Commercial and Retail Property Management
Here are some ideas to help you sell your services as experienced commercial and retail property managers today:
- Show the landlord how you inspect a property and what you look for. Regular property inspections are part of your management services; in this way, you can stay on top of lease and maintenance issues. Reports should be created after all property inspections as evidence and information may be required later in the event of any issues arising.
- Create a tenant retention plan that can be implemented for your managed properties. Good tenants should be retained and encouraged to be part of the future of the property. That being said, there is a need to work with them on any issues of occupancy. Remember that other agents will be contacting your tenants to move to other properties nearby.
- Your financial reporting processes must be complex, accurate, and thorough. The parts of financial reporting that really matter include income optimisation, expenditure management, lease renewals and changes, rent reviews and options to extend for a further term.
- Lease management is the backbone of stable property and the tenant mix. All lease documents should be completely reviewed for all critical dates and changes that have to be exercised.
- Maintenance management is a daily task for most property managers. Systems in your office should be developed to control and track the maintenance in all managed assets. That is from the first advice of event to the final payment of account. To help with this process you will need good maintenance contractors that work to your plans and processes.
- Risk management is part of the property manager’s role and process. Any risk within the property should be minimised and that will be across all categories of potential risk such as income, lease, property usage, public liability, maintenance, and health.
You could say that all property managers should do these things with efficiency and focus; the reality is they do not always do so. Ensure that your office is suitably structured to produce a top service for your property management clients. In that way, it is easier to justify your fee for service.