A high performing property manager undertakes the right tasks at the right time to maximise asset value and in addition, has strong time management and communication skills as well market knowledge, financial acumen, problem-solving ability and negotiation shrewdness. The like skill set allows the property manager to guide an owner on matters including but not limited to rental rates, site operational challenges, tenant management, budgeting and expenditure control.
So, what are the 6 key things that your commercial property manager should be across and doing?
1. Know your Lease
Leases can be convoluted, hard to read and cumbersome. Your property manager needs to have a clear and concise understanding of the lease provisions and ensure they’re administering the lease obligations diligently for the duration in which the tenant is in occupation.
2. Tenant Relationships
Content and happy tenants create a platform for long term occupation and it’s more effective to problem solve challenges with tenants on your side rather than butting heads. Your property manager treating tenants well involves having great communication skills, responding to their needs in a timely manner, being accessible and open to relationship creation to ensure both tenants and property manager are rowing in the same direction.
3. Proactive Inspections
Frequent inspections are non-negotiable in property management for vigilant asset maintenance. The more regular the inspections, the higher capacity to identify and fix problems before they grow into bigger issues that can increase expenditure. An intangible of regular inspections is greater tenant engagement allowing for and understanding of how tenants are tracking whilst also giving tenants a forum to relay any site issues to you.
4. Rent Collection
While collecting rent can be a challenge, the best property managers take to the task in a timely and trouble-free manner, to ensure owner cash flow is not impinged on. As per the first point, having working knowledge of lease provisions especially around rent and breaches is key.
5. Know the Legislation
Sound knowledge of commercial leases legislation (relevant to your state) is a must for a strong performing property manager. Having working knowledge of the relevant act/s provides an ability to make decisions and take action in an effective and time sensitive way.
6. Know the Game Plan
Your Property Manager should acutely understand your current and future site plans and manage the site accordingly.
Examples of questions your property manager should be asking might be:
· what are your goals for the asset?
· how long are you planning to hold the site?
· are you wanting to re-develop in future? and
· are you looking to dispose of the asset in due course, thus want maximum rental growth?
The way your property manager manages your asset should be linked to your requirements.
Lloyd Ioannou
Manager – Property Asset Management
MRS Property welcomes the opportunity to meet with you to discuss your asset or to simply answer any commercial property management queries you may have. Please contact our office on (08) 8297 2400 to get in touch with Lloyd.
26 March 2019