|Manage your leases and tenants.|
The commercial and retail property agency will benefit significantly from the implementation of a specialist lease management program for their property management clients. Lease management allows the property portfolio to optimize performance within the plans of each client. A lease management program can lessen the impact of vacancies on the client’s property and tenant mix.
Here are some ideas from our bulletin for Commercial and Retail Property Agents.
Given that today's property market is volatile and ever changing, the lease management program brings a form of strategy and stability to the landlord’s investment property.
This strategy and stability can be seen with critical factors such as:
• Rent review optimization
• Lease expiry administration
• Option and renewal discussions and negotiations
• The tenancy selection process for tenant mix improvement
• Tenancy relocation and replacement
• Property refurbishment and renovation
• Vacancy management
• New leasing strategies
• Outgoings optimization and returns for the landlord
So a lease management program brings specialized processes into the average commercial and retail property agency. This then allows the agency to bring exceptional services to the clients that they act for. At a time when commercial and retail property performance is under pressure, a quality lease management program is of high relevance to your property management clients.
Here are some clear reasons to implementing a lease management program in your agency:
- Whilst the lease management program can be considered a normal part of property management, the reality is that the process is largely neglected or overlooked by many agencies. This then creates situations where individual managers overlook rent reviews, lease options, outgoings recoveries, and tenancy replacements. In other words, they make more mistakes. In the eyes of the client this smacks of poor professionalism and can impact the cash flow.
- When a client understands that their property is well managed and fully under control, they are inclined to trust you with more properties over time. Larger properties and a greater number of properties in your management portfolio can exacerbate issues and problems unless a comprehensive lease management program is implemented for all clients and for all properties.
- The landlord and the property will benefit from the program through improved property performance in income, lower vacancies, and managed expenditure. Decisions and targets can be set regards the tenant positioning and replacement in the tenancy mix.
- The program will allow you to strategize when it comes to poorly performing tenants or tenants requiring replacement or relocation. The property is no longer a random investment experience for the client; it is a staged and targeted process of property improvement.
- It is of note that a good lease management program should form part of the property business plan for each property management client. Every 12 months the business plan will be reviewed and structured for the coming financial year by the property manager in conjunction with the client. Decisions and targets will be set when it comes to ideal lease terms, rental conditions, tenancy placements, and vacancy minimization.
When a program of this type is correctly structured and implemented, it gives the agency of real point of difference in service and client interaction. Over time this can reflect in a growth of market share and quality of listings.
Need some more help with commercial property leasing? Get our bulletin right here.