In commercial real estate brokerage today, the property management process can be very lucrative in more ways than one. New fees and sustained client relationships come from professional property management services.
That being said, it is not a service to be provided by the inexperienced or average agent without them having a good awareness of market activities and investment strategies. Property management services are advanced and specialized when it comes to complex office or retail buildings with multiple occupants. Good fees can be taken from higher levels of service and by using the best people in the business.
Set Your Plans
If this is a part of the industry that is of interest to you then it would be wise for you to develop a series of plans to take on and control new property managements; the list or plans can be improved over time. In that way you will likely not miss things or make the wrong decisions without full consideration of all the issues in the new property. Strategy is everything in successful commercial property management today.
Property Management Strategies
Here are some ideas to help you take on a new property management and client into your brokerage portfolio. You can likely add to the list based on your location and city:
- The right person for the property and the client – Some clients and properties need a degree of control and direction. Experienced managers know how to do that and they are generally not afraid of speaking their mind under challenging property matters and pressures. Choose the right person for the client.
- Get all the property facts – When you look deeper into a property you will have to cover off on many key categories of activity including income, expenditure, capital works, maintenance, lease documentation, and tenant controls. In a complex property the fullest of investigations can take weeks to complete. During that time the day to day activities in the property will continue and issues will arise. You could say it is a ‘juggling’ act, and to a degree you would be right. That is why a checklist approach to property assessment and evaluation is wise.
- Tenant activities – With each tenant in the property there is a requirement to know as much as possible about the tenant’s current activities, intentions, and business stability. When you know the facts about the tenant, you will be able to predict and work with their leasing needs into the future such as expansion, contraction, and relocation. Strive to keep your good tenants happy in occupancy.
- Landlord requirements – Each landlord will have unique targets that apply to renting, leasing, management, reporting, cash flow, and negotiations. Get to know the risk tolerances of your clients so that any deal or lease negotiation can be handled with direction and skill. Know how to report to your clients on key issues and property performance.
So there are some key facts to control here and bring into any new commercial or retail property management. It can be said that a retail shopping center is even more complex with factors of occupancy, marketing, and tenant mix.
Now you can see why property management services in any investment property today are so special. Are you up to the challenge?