If you’re looking to grow your commercial property management department, you should do so from a base of deliberate marketing and client contact. Some management prospects or clients will move through sales and leasing activity throughout the year. That activity will be a good catalyst for a potential property management appointment. Ask the right questions at the right time.
Look for reasons to help
There has to be a reason for a client to seek a new property manager and/or property management assistance. When you understand that fact you can market your services directly at the right time as part of your brokerage activities. Many clients don’t like the hassle of dealing with issues around rents, tenants, arrears, and lease documents.
Here is another fact to remember; it is reasonably difficult to change property managers at any point in time. Poor performance is perhaps a biggest reason for a client to take that level of action, but you really do not know when a property competitor is under-performing. Constant contact will help you find that catalyst.
Be the best solution
Some landlords and property investors see the change of property manager as a frustration more than an opportunity, so a change of manager is really a last resort for a client. You have to be the better solution in every way possible, so refine your skills and offerings accordingly.
The break through that reluctance barrier or client misunderstanding, it is necessary for you to provide some expert and special property management services for the property type and the location. Market your professional services in property management so that the client can see some real benefit and opportunity through change towards better property controls, tenant mix upgrades, income opportunities, and strategic leasing.
The specialist approach
The message here is that you need to be different and specialized in the services that you provide. Ordinary property managers are a dime a dozen. The best agents from a property management perspective are very specialized in many different ways. They command the best fees and provide the top services. Invariably they will manage the largest buildings locally across industrial, office, and retail property sectors.
Here are some ideas to help you achieve a reasonable level of growth and opportunity in your property management division for your brokerage:
- Work from a base of sales and leasing activity – when you assist the client through a sales or leasing transaction it is then the right time to talk about property management services and solutions. Drill down into the alternatives available within the tenancy mix and the lease documentation. Understand how you can bring real value to the tenancy mix and the property over time. Specific strategies will always help you achieve that outcome for the client
- Get to know local investors – there are always plenty of investors to connect with in your local town or city. Some of those investors may self-manage, and many others will require expert help in a variety of different ways. A complex tenancy mix and a large property will usually be a reason for external management services. Target the largest buildings and the better property precincts in your town or city. Look for the owners that really do need professional help in a timely way across tenancy challenges, rental alternatives, and lease documentation.
- Provide some real differences in service – there is no point in providing a standard property management services today. If you want to achieve the better fees and convert the better buildings to your management portfolio, you will need some real points of difference in how you do things. Look at your reporting structures, your client interaction, risk management, and lease management strategies. There are different things you can do in each category to provide a superior service to the clients that you serve.
- Understand how to improve rental growth and tenant mix performance – when you look deeply into asset performance and particular the properties that you manage locally, you will see weaknesses in the tenancy mix arrangements and upcoming vacancy factors. Ultimately most landlords want to protect their income cash flow, so there are plenty of strategies that you can deploy into the tenancy mix to improve rental growth and rental recovery. Look at the property from a landlord’s perspective. Be prepared to provide solid and logical recommendations for the properties and the task at hand.