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Career Tips and Advice for Commercial Property Managers

City buildings on the edge of a river. Commercial high-rise buildings and bridge.

The levels of knowledge and the professional skills required in commercial and retail property management are unique and deep.  They are quite different to the skills required in a leasing or sales situation.  A property manager is a differently skilled person, and they need to look at the big picture and remain focused on their properties and clients for months if not years.

 

That long-term focus allows the managed investment to improve over time through changes to the tenancy mix, the cash flow, and the property function.  The investment process is lengthy; the investment requirements of clients will be individually unique.  That is why and where professional service and property manager performance will underpin client attraction, retention, and engagement.

 

If commercial property management is a career for you, then there are some things to learn and disciplines to implement for the long term.  Expect to be very busy as you embark on your career and remain in it as a professional.

 

What do you need to know?

 

You will need to learn about the legalities of occupancy, investment performance, leasing, cash flow strategy, and property documentation.  Control systems will be at the centre of your property management career and portfolio control.

 

Every day there will be pressures on your portfolio and your properties with tenants, maintenance, landlord focus, reporting, and risk management.  As part of your career, you will be at the centre of many events, requests, and communications.

 

If your properties and workload pressures are excessive, you will lose control of the ‘property management process’; that then leads to unhappy clients and out of control tenants.  There is a balance between quality property management services and a sensible workload of tenants and landlords.

 

Typically, the landlord will be your client, and you will be the main controlling factor to property performance and investment outcomes.  That is why the skills of the property manager are so important.  The days of collecting rent and maintaining the property are well gone.  The strategic approach to property management is now well established and evolving in new and different ways with efficiencies in building technology and the requirements of local business.

 

What do you need to do?

 

Are you ready for the property management challenge?  If you have a large portfolio or a long list of tenants, the complexity of the daily workload just gets deeper and more challenging.  There will be plenty of work to control and direct.  Here are some rules to help you with that approach:

 

  1. Knowledge – get to know everything possible about your location, the leases, competing properties, business activity, rents, and investment priorities. Through a substantial level of knowledge, you will see how you can improve an investment situation for your clients.  That is where tenant mix changes and leasing strategies will help with property performance.  That then becomes an important part of your professional services.
  2. Complexity – there are many variations to tenancy mix control, lease negotiations, rental cash flow, and property performance. The decisions of today with a tenant or lease matter will impact the investment for the long term.  Understand your decisions and how you can improve the investment outcomes for your client.
  3. Clients – every client will have different pressures and priorities when it comes to property performance. Get to know those factors with your clients, understand their portfolio activity, and look at the life cycle of their investments.  Don’t just manage a property but understand the asset and the focus of the client.
  4. Controls – there will be different systems that you can use to help you in providing services to your clients. Software programs will cover the facts and variables of lease management, rent collections, maintenance, and facility management.
  5. Reporting – report about your managed properties in the ways that the landlords require. Information will help them make choices with rents, occupancy, and expenditure spending.
  6. Tenants – expect the tenants to be pressuring you on their issues and their occupancy. A retail property is a prime example of that pressure with many tenants positioning for better sales, lower rents, and a successful business.
  7. Property performance – every property should have a business plan and a budget to work to over time. The client or landlord will be setting investment priorities and cash flow controls.   If you manage properties for many clients, the issue gets deeper and more challenging.

 

Through all these pressures and strategies there will be opportunities for a professional property manager to excel in skills and career development.  Are you ready for the challenge?

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Commercial Property Management Questions to Use in a Handover

City buildings on Sydney Harbour

When you take over a new commercial property as part of a management strategy for a new client, you should ask specific questions relating to the asset, its history, and the tenancy mix.

You can get plenty of commercial property management tips and ideas as part of our regular online coaching right here.

There are many things to explore as part of a new property management listing on your brokerage books. In this audio program, John Highman talks about the factors to question and review. Most particularly key matters to look into will include:

– lease documentation
– tenancy mix
– property maintenance routines
– risk matters
– rentals and rent recoveries
– critical dates
– vacancy factors and pressures

You can listen to the audio program here to understand exactly how you can approach the handover process in commercial property management today. It doesn’t matter whether you are managing a retail shopping centre, or a commercial office tower. The same strategies and processes apply. Attention to detail will help you with the fact review and gathering process.

You can get the audio below:

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Commercial Property Management Skills Start Here

City buildings on rivers edge

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.

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

City buildings on the edge of a river. Commercial high-rise buildings and bridge.

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:

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Things to do in a Commercial Property Management Handover

high rise buildings

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.