Commercial Property Management Skills Start Here

In commercial property management today there are plenty of things that you can do to differentiate yourself from your competitors. Make no mistake, managing a commercial or retail property can be quite a challenging process. (NB – you can get plenty of commercial property management skills and ideas in our Snapshot program right here – its free)

Real skills are required and special people should be dedicated to the process of providing specialised services to investors and company owners.

In this audio program, John Highman talks about the special and unique skills required to manage a commercial or retail property today. Learn how to grow your brokerage business from a base of management activity and property management clients.

 

Property Facts and Controls

 

When you completely understand the strategies behind property management, you can develop special services across asset performance including the following:

– tenant retention
– income enhancement
– lease negotiation
– expenditure management
– net income generation and cash flow control
– lease administration
– maintenance management
– risk minimization
– renovation and refurbishment activities
– vacancy minimization

So there are many concepts and strategies within this list. If you take each individual concept, there are many specialised services that can be provided to your clients and customers.

In this audio program, John Highman talks about the importance of commercial and retail property management in brokerage performance today. Learn how to improve your brokerage business and the future commission opportunities available in your town or city.

Commercial Property Management – Presentation and Pitch Ideas for a New Engagement

The process of commercial property management is quite special and unique when compared to sales and leasing activity. For that reason the people appointed to the task or property management should be carefully selected as to property knowledge and investment awareness. (Note – you can get plenty of property management tips and ideas in our Snapshot program right here)

There are many different strategies to consider when it comes to pitching for a new commercial property management. In this audio program, John Highman talks about the particular elements of a property management presentation that will be of relevance to most clients today.

Listen to the audio program and develop some specific ideas to modify your property presentation and management ideas. Don’t forget to talk about income enhancement, tenant mix changes, property controls, and risk reduction.

You can get the audio program right here:

Things to do in a Commercial Property Management Handover

If you are about to take on a new commercial or retail property from a management perspective, there are things to think about.  There are things to think about and the property management handover is critical to gathering the right information.  Every client and every property will have unique issues to prepare for and ask questions about. (NB – you can get plenty of property management tips in our Snapshot program right here – its free)

 

Handover Importance

There is something to remember here about a property handover and why it is so important; you only have a short period to get the full information about the property and its performance over time.  Questions must be asked of the previous property manager, owner, or tenants.

 

Stay Organised

An organised approach with a checklist as part of a handover process is a good thing to work with.  A checklist will keep you on focus and task for the property type.  Different questions are asked when it comes to the different properties.

So here are my experiences and ideas relating to taking over a complex commercial or retail property.  Preparation is the key to success in capturing all the recent and relevant property detail.  You may be able to add to the list based on the location and the landlord:

  1. Check out the physical aspects of the property – it always helps if you visit the property first before you do other things. The visual aspects of the property will help you significantly with investigations and questions.
  2. Review the tenancy mix – in a property with several tenants, look at the types of businesses, location of each tenant, and the performance of the property for the tenants in situ. Some tenant types put pressures on the property such as security or staff issues.
  3. Review all the leases relating to occupancy – the leases will have unique elements of occupancy to review. All leases should be read; extracts and critical dates should be taken from each lease where you can see important facts impacting occupancy.
  4. Understand the vacancy factors – any vacancy now or in the future is an issue. Resolve vacancies through a tenant retention plan, a marketing plan, or a targeted leasing program.  You can also move existing tenants around the property.  Think outside the square when it comes to tenant movement and placement.
  5. Look at maintenance and risk factors – any person owning a property assumes risk and must plan for the challenges of property ownership. The building, the improvements, the location, or the tenant mix, can create risk matters and pressures.  See things for what they are and how they could challenge the investment performance.
  6. Review income and expenditure results – there will be a pattern of income and expenditure to review and consider. The last few years will have value to you when assessing passing income and net income.  The results of the last few years will help you set new budgets for the property given the existing tenants, leases, vacancies, and landlord targets.
  7. Talk to the landlord about expectations and reporting – every landlord will have certain requirements of reporting and control. The property will have income and capital value targets over time.  How can you report to that criteria for the current property owner?  Have you got a software property management program that allows you to report conveniently about the asset and the current results of income, leasing, and tenant activity?  The information that you gather from a property management handover will be captured into the software that you are using to manage the property.

So, there are many things on this list to investigate.  One thing or one question will lead to many others.   As you take on a new property to manage, be prepared for the information and the facts that come your way; take plenty of notes.

How to Undertake Routine Inspections in Commercial Property Management

The idea of inspecting every property in your commercial real estate portfolio can be a bid daunting given that there are plenty of things to look at and investigate as part of the inspection.  The greater the number of properties that you have to manage, the bigger the process of review and documentation.  (NB – you can get our free commercial real estate course for brokers right here)

When you have lots of tenants in occupancy, the whole equation of inspection becomes more complex given that many tenants are in occupation and they all run different businesses.  So the inspection process has to be comprehensive and records need to be kept.  The property manager or the center manager has to implement the property inspection process regularly and in a detailed way.

In this audio program, John Highman talks about the routine inspection process that is all important in the commercial and retail properties under management.

 

How to Find Commercial Property Management Clients and Why Do It

The commercial property management segment of the market can be quite lucrative from a brokerage perspective. The clients that you serve in that way require specialized skills and services over an extended period of time. The complexity of the property can involve strategies and activities across the tenancy mix, leasing, vacancy resolve, maintenance management, asset planning, and income performance. There are many things to do and many ways to approach the challenges that the client may face.

Note, you can get our free commercial property management course right here.

So the message here is that you can and should develop a significant property management portfolio in your real estate brokerage. Take the time to develop a list of clients and prospects who will need your services in management at some stage in the future. Develop a prospecting process to open the doors to management opportunity.

The best way to attract commercial real estate clients and those needing management services is to directly prospect the owners of the best buildings in the best locations. It is always preferable to manage a building with multiple tenants in occupancy and multiple levels of income generation.

The bigger buildings and those with a complex tenant mix require expert management help. They also require complex software management programs to administer the required controls on leasing, maintenance, tenant mix, and income optimisation.

So there are some distinct advantages here to be optimised. In this audio recording, John Highman talks about the opportunities of commercial real estate property management in brokerage today. See if you can use some of the tips that John talks about to open up your brokerage opportunities in this way.

How to Prepare Budgets in Commercial Property Management

Budget time in commercial property management is something that requires accuracy and planning. Mistakes can be made when it comes to setting the budgets that apply to income and expenditure in an investment property. Many property managers understand the key issues to focus on when it comes to budget establishment.

Essentially a budget of this type involves complete review of the income possibilities for the building given the existing tenancy mix and the prevailing property market. Assumptions have to be made given the known facts and the targets of the landlord.

Note: You can get more property management tips in our email course for brokers and agents.

The history of the property will have some important indicators to merge into the ongoing property budget. You can learn a lot through reviewing the timed income and expenditure over the period of the last few years.

In this audio recording John Highman talks about the strategies behind the commercial and retail property management budgeting process. Understand the key factors that apply, and then merge them into your business plan for the asset.

How to Avoid Procrastination in Commercial Property Management

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Get things started early in Commercial Property Management

In commercial real estate property management, procrastination can be a big issue or hurdle in getting the harder jobs done. Let’s face it, there are difficult things to do every day of the week in our industry. Have your people in the management team got the right knowledge, experience, and commitment?

(N.B. these ideas are also sent out to regularly to our friends in Commercial Real Estate Online Snapshot to help amplify brokerage results…. Get your access here)

Workload pressures in commercial property management are usually consistently high. Free time and spare time is a luxury if and when it occurs. Most days of the week are quite busy. Stress can also be a problem for some people.

What is the Focus?

The best commercial managers are the ones that get the work done first and foremost every day. They prioritize their time so that they are effective in the best possible ways. So what are the issues that put the pressure on? There are many pressures arising from separate categories such as:

  • Tenancy management and communication
  • Landlord reporting and approvals
  • Maintenance contractor controls
  • Property performance to targets and to the budget

So the best property managers know how to optimize their time and will usually do so efficiently and directly. Any inefficiencies in the job role will usually create problems with clients and property performance.

Any team leader in commercial property management should be careful to select the right people for the tasks and the portfolio under management. The team of people within the division should work to a system or plan to help them get the work done and to control the assets in the best possible way.

Commercial Management Systems?

Here are some ideas to help you develop the best property management system and control process:

  1. SOFTWARE: At the top of the list would have to be the selection and use of a specialized software program controlling property performance. There are many different programs available for the task, and some are better than others. Typically, a program will need to control rental monies in all categories, arrears management, tenant communication, lease administration, critical dates, and property maintenance. The best programs tend to be somewhat expensive, however they provide high levels of property control and reporting. If you are going to manage high quality assets for quality clients, then you will need such a program.
  2. FILE ACCESS: Cloud based storage is always very useful. When the managers are out in the field meeting with tenants and landlords, cloud based storage can help when it comes to file access, reporting requirements, and all communications.
  3. CLIENT ACCESS SERVICES: Develop a dedicated client portal for all client communications. All of the client reports can be stored online within a dedicated portal for VIP client access and communication.
  4. TENANT COMMUNICATIONS: You can enhance tenant management through a special web site where any maintenance issues and communications are directed or first initiated. The website can retain all communications and redirect as required to the right people in a timely and efficient way. Like it or not, some of maintenance issues occur at the strangest of times, and you will need an effective communication process to handle those things.
  5. MAINTENANCE PERSON: As the property management portfolio grows, there are benefits to be achieved by employing a specialist maintenance manager. The manager can oversee the day to day maintenance requirements and unexpected portfolio issues for all of the managers.
  6. LEASE ADMINISTRATION: Appoint a year lease administration person to monitor the lease critical dates and upcoming lease changes and issues. The larger the portfolio, the more desirable, essential, and efficient you will find this position. A lease administrator will be a good addition to most property management portfolios.
  7. TRUST ACCOUNTS AND FUNDS CONTROL: The handling of monies, rentals, arrears, and property performance will require an experienced accounting person understanding the issues of lease documentation, tenant management, and property law. There is high value here in choosing the right person for the role.

From this list, you can see the specialties required in commercial property management. The same can be said for retail property management. Choose the best people and position them accordingly.