When it comes to commercial property management, the quality of the property manager has a lot to do with the outcomes of property performance for the landlord. Here are some tips from our Commercial Real Estate Newsletter last week.
Here are some further ideas and attributes that apply to good commercial property managers:
- The property manager is not just a rent collector. They are there to administer the daily activities of the property in keeping with the demands of the tenancy mix, the instructions of the landlord, and the property usage by customers. On this basis the property manager has to be an excellent communicator and use consistently strong administrative skills.
- Understanding lease documentation, local laws as they apply to lease occupancy and the functions of each particular property are ongoing requirements. Ultimately the landlord is the client for whom the property manager acts. All matters of response and control should be undertaken within the guidelines set by the landlord and the terms and conditions of each particular lease. That being said, each lease document within the tenancy mix should be regarded as individual and unique. On that basis the property manager needs to interpret each lease document thoroughly and completely to enforce the terms and conditions effectively.
- The reporting requirements at each month end to the landlords within the agency portfolio are significant. In a basic single tenant property the monthly reports are quite simple, but in a property with multiple tenants there are many things to control and report on. Some of the categories to consider in the monthly report would be income, expenditure, budget performance, lease documentation, vacancy profile, rent reviews and options, property maintenance, risk management, and insurance. You can formulate a standard monthly report that suits each particular landlord and the needs of their management portfolio.
- Financial reports as they apply to each tenancy and each property need to be interpreted and checked. This should be done prior to the month end reports being sent to landlords. It is not unusual to have errors or omissions in financial reports that need attention. For this reason the property manager needs to understand and interpret the financial records that apply for each landlord and each property.
- The lease management and tenancy management within a property is effectively the control of ongoing occupancy to maximize the property income for the landlord. Given that at any point in time some leases will be expiring, rent reviews will be negotiated, and options will be occurring, the property manager should be looking 12 months in advance for any events of this type and should be taking the appropriate action early.
Good commercial property managers are special people of high skill and extensive property knowledge. They understand how to improve the property and strengthen the income and tenancy profile for the landlords that they act for. It is not unusual for the best commercial property managers to become experts in the industry. Join our Newsletter here for some more ideas in commercial real estate agency.
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