|Target quality commercial property managements|
In commercial real estate today, many an office principal will know the high value of having a rent roll. The income from the rent roll each month is stable and usually growing. That helps smooth off the pressures of peaks and troughs in sales and leasing commissions. Here are some tips from our Newsletter this week.
In commercial real estate the rent roll is specialised and uniquely run; you need special people to do that. Unfortunately many property managers are put into the position with little or no training. They have no idea of what they are doing or where to go to get help. Graduating from residential property to commercial property is a major shift in tasks and work styles.
So there are major differences between residential property management and commercial property management. Those differences are all to do with the way in which the property has to be run and optimised. In addition to that there are many more things to do such as:
- Lease management including rent reviews, rental options, negotiations relating to existing tenants and leases, and many other terms and conditions of the current leases.
- Helping the landlords work towards and property plan and target
- Maintaining the property so the tenants and the customers are able to use the property well
- Connecting with contractors so that the maintenance in the property is correct and compliant to building codes and property usage.
- Manage the tenant mix so the property is functioning correctly in keeping with building codes and compliance
- Manage the expenses for the property so that the net income is as the client requires throughout the year.
- Budget the cash flow for the property before the start of a financial year.
To get a fair fee in commercial property management, the service has to be there. Landlords deserve property managers that can give the property some direction and control.
What Fee Should You Charge?
As to what fee you should charge to manage commercial property today, the fee should be appropriate to the work load. A commercial or retail property with lots of tenants takes real strategy and work on a daily basis. That being said, the property manager should not manage too many properties with too many tenants.
An overworked property manager can destroy the stability and performance of a commercial or retail property. It should also be noted that a retail property is a lot more work to manage than a commercial property; on that basis the fees to manage retail property and shopping centres are generally higher to reflect the required work.
If you need more tips for commercial property management please check out our website.