When you run or operate a commercial real estate agency, the sales and the leasing deals that you do are all very nice, but the property management rent roll is far more important to the stability of your office in the long term. In this property market it is the commercial agencies with the rent rolls that are more attractive, stable, and functional. When it comes to selling an agency at some time in the future, that is exactly what you want.
That being said you also need to ensure that you have skilled and knowledgeable property managers if you intend running a commercial or retail property management rent roll. Commercial or retail property management is quite a unique process that cannot be easily undertaken without knowledge. Property managers that lack the experience will quickly destroy the performance of the property. Landlords and tenants in commercial or retail properties do not easily tolerate average service from their property managers (nor should they).
So what does a rent roll bring you as an agency business? Try some of these:
- Stable commission cash flow from the rent roll
- Interaction with property investors
- Investors that own multiple portfolio property
- Tenant enquiry to occupy local managed properties
- Controlled Leasing fees opportunity from managed sites
When you are operating a commercial agency, look to starting a commercial rent roll with the right people with the right skills.
When you take this process into your business plan the next question will be ‘How can I find new managements?’ Some property owners self-manage, but there are others that do not want to do so or do not have the expertise. They are found mainly by capturing the potential management need at time of purchase of the property; they are also found by direct property owner approach. Over time you can make a portfolio of managed properties grow.
This simple addition to your commercial real estate agency business plan will create significant long term opportunity.
You can get more tips for commercial real estate agents at http://www.commercial-realestate-training.com/