A property management presentation is something that you may do for a number of reasons. It could be to win a listing or a new client, or it could be to summarise the performance of a property. With any larger office or retail property you could be presenting to the client monthly or quarterly about property performance and tenancy activity.
There are many ways to do things in a Commercial Property Management presentation to a client. In an ‘ideal world’ your presentation should be special and relative to your market as well as the property; you can then integrate the specialist skills in your management team.
Are you ready to do the best you can? So let’s look at some strategies to merge into your Property Management pitch and in presenting your property management services.
- Understanding the current issues in the property will be first and foremost. Understand the leases in a comprehensive way as well as the tenant mix. That will include critical dates, rent reviews, options, rental strategies, and permitted uses. In a property with a lot of tenants that can be a real challenge. Whilst you may have a tenancy schedule to help you stay on track, the quality of the information in the tenancy schedule will be critical; many a property manager has been caught out by incomplete or old information in a tenancy schedule.
- Most landlords are focused on property improvement and that usually means rent. Look at the lease and tenant factors that impact and support rent. Rent reviews in a lease are part of that, and they can be calculated in a number of ways. Fixed percentages, fixed amounts, market reviews, and CPI reviews are most common. Some rent reviews are better than others when it comes to helping the landlord grow rental. You can put the rental and income for the property into a chart to visually illustrate just how things can improve over the duration of a lease or calendar year. Market rent reviews can be quite risky in a property performance plan particularly if the market rent can fall and the lease has no ‘ratchet’ provision to protect that (in some leases ‘ratchet provisions’ are illegal so take the time to understand the leasing laws for your property type and location.
- Risk is one of those factors that frustrate property performance for the landlord and the property manager. Risk can be related to a number of things including vacancy potential, change of use, change of tenancy mix, tenant volatility, tenant trade, high levels of outgoings, a rise in property expenditure, capital expenditure spending, sinking fund works or pressures, property presentation or use, and a lowering of market rents. In any moderate to large property with a number of tenants, these things should be controlled via a ‘Property Business Plan’.
- Do some profiling on the supply and demand for property locally from a sale and lease perspective. From that you can also assess and predict market rents and incentives. Factors like these help the landlord adjust to lease negotiations and vacancy pressures.
Commercial and Retail Property Management is a specialist and important part of our industry; it can be fed by leasing and sales activity. That is how you will win most of your new property management appointments and clients. Be ready to pitch and present your services at any time. Incorporate the information above to make your presentation unique and relevant to the client and their needs.