Commercial Property Management Tips

Commercial Property Management Tips

by John Highman, Commercial Real Estate Coach

When you run a commercial property agency, the service of property management becomes a natural extension of servicing commercial clients, landlords, and business tenants.  So you can look at property management as an opportunity to extend and specialise your business.

Here are some tips to help the process:

  1. Choose your staff and property managers well as the retail, industrial, and office properties that you work on will require special knowledge and focus.  Far too many agents struggle with the wrong staff and landlords suffer.
  2. You will need some specialised accounting software to charge and track the rental payments made by commercial tenants.  Understand that the rental processes in commercial are a bit different to residential property as you get other charges to raise and reconcile such as gross rent, net rent, outgoings, car parking, signage rental, storage rental, electricity cost recovery, plus more.  On this basis you will need the right software to help you handle the process.
  3. Lease management is a really big issue in providing landlords with commercial or retail management services.  When it comes to this process, you will need software to track lease expires, lease renewals, rent reviews, options, outgoings reconciliations, lease conditions that need to be satisfied, and tenant obligations.
  4. The maintenance in a commercial or retail property should be undertaken with due regard to landlord instructions, lease terms and conditions, and building budgets.  The property manager has to understand this from all the different angles, and then make the right choices.
  5. Property occupancy and tenant mix management is becoming more specialised every day.  Building regulations and codes impose ever increasing rules on the ways in which a building should be managed.  A property manager should keep up to date with all the changes in property legislation and laws.
  6. Retail property is really special and in most cases has unique laws that apply to leasing and shopping centre management.  This then says that the managers chosen to look after these properties should be very experienced.

As an observation, a good commercial or retail property manager is much more experienced in property performance than members of the sales team.  They earn their commissions differently but nevertheless should be rewarded for the stability and grow they bring to landlords portfolios and tenant mix.

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