There are some special people in your town or city that you can tap into when it comes to looking for and finding new Clients and Commercial Property Management appointments. A professional property management service is something that is both very marketable and highly desirable in a brokerage business. NB – you can get plenty of Commercial Property Management tips in our Snapshot program right here – its free)
Why do this? A property under management is a good addition to a brokerage fee base and team. You can also get plenty of new sales and leasing business over time from a property management portfolio; that says you should work professionally and strategically for the clients owning the properties. The right people in your team will also be part of the process of establishing and growing a commercial or retail portfolio.
One thing to remember here is that a change of property management company is seen by clients as complex and time consuming; some clients need a ‘catalyst’ to change managers. They prefer not to change managers if possible. Look for the potential clients that could have a reason to change managers, and then make the whole change process easy through a handover strategy that is defined and accurate.
There is another question to investigate here when you are working with some owners. Are property management fees recoverable from the tenants in a property as part of the outgoings recovery under the lease? If the fees are recoverable, then the change of manager and the cost of the services will not normally be an issue for the client. The message is that you can look at the leases first before you set a management fee and pitch for the appointment.
Key People to Connect With
Here are the key people that you should investigate locally for property management opportunity:
- Sale buyers – understand why people may be purchasing a local property. If they are ‘investing’ then they are likely to need professional property management services. As investors, they may have an income or value focus to owning the property over time. This information then gives you some leverage in pitching for the new business. Ask plenty of questions, and you will soon know the intentions of the client in how they see the asset and what they are going to do with it over time.
- Investors locally – you can research the local property investors to determine what they are looking for in portfolio expansion or change. Find the next property for them, and you will then likely have a new property to manage.
- Portfolio owners – any investor owning a few properties of a type or in a region, will likely look for portfolio enhancement opportunities over time. Diversity is sometimes a good strategy to bring into an existing portfolio of buildings. In using the word ‘diversity’, I am referring to the different types of property, such as retail, office, and industrial.
- Leasing clients – a lease of a vacant property is a reason to ask for the management. You can also introduce a few asset improvements and enhancements in the leasing process. There are things that you can say to the client to help them improve net income.
- Landlords owning quality buildings – within your database, have a section or segment category for the property owners that you identify of the high-quality buildings in your targeted precinct. A good quality building is more inclined to need a professional service for tenants, building operations, and landlord reporting. Develop some control systems that can apply to the better buildings under management.
In identifying these people, it can sometimes take months and even years for a client to move property managers. Make it easier for them to do that and stay in contact for the longer term. All the way through your contact process, show the client how you are positioned to provide a superior property management service to that which they currently have now. It is a simple logic, and it does work if you are consistent and professional in your contact systems.