“6 Useful Ways Of Effective Commercial Property Management” written by Mike Marko.
Are you looking for tips for a more effective and successful commercial property management?
Being a property manager of a commercial property may seem easy easy, but the work requires a lot of time and effort. It takes some time to familiarize yourself with how the stuff works for commercial properties and this can often be tedious.
In this article, we will cover all the basics to diminish the time spent on learning and more on doing. We will discuss several tips for a successful commercial property management to help you in your endeavor with commercial property management.
Tips For A Successful Commercial Property Management
Can you handle the big responsibility of being a commercial property manager? Don’t be intimidated by the seemingly stressful tasks that need to be carried out because there are useful tips to ensure an effective commercial property management.
Before discussing those, let’s talk about what is commercial property management first.
What Is Commercial Property Management
Commercial property management is a type of business service that helps property owners in managing their properties. This encompasses the various tasks and responsibilities of operating a revenue-generating property.
A commercial property manager is in charge of handling these tasks for non-residential properties such as offices, rental spaces, shopping centers, and industrial buildings. Advertising, marketing, and leasing processes are all aspects of a commercial property manager’s job.
Once the commercial rental properties have been leased, the commercial property manager’s job becomes less hands-on as most commercial tenants prefer to take care of their own maintenance. However, managers must be able to keep meticulous administrative and financial records, ensure the collection of rent and respond to concerns brought forth by tenants.
3 Reasons Why Managing A Commercial Property Is Better
While there are many similarities between a commercial property manager and a residential property manager, their lives can be vastly different as well. Aside from requiring distinct licensures, the skill sets needed to be successful is the largest difference between the two.
Although there is an overlap of basic duties, commercial property managers need broader and more diverse knowledge to handle their commercial assets. They are required to be educated in regulatory and insurance information. They must also be aware of the legal and physical needs of the different businesses in their commercial properties.
Despite the variety of responsibilities required in order to be successful in commercial property management, property managers often would rather dip their hands in it as compared to residential property management.
There are three common reasons for this:
1. Rental Profits May Be Higher In Commercial Properties
If the commercial property is located on an accessible area, the number of possible customers or clients would boost the tenant’s business. This means that the property manager could charge higher rent due to the value of the rented space being higher than surrounding areas.
This can be capitalized on, although negotiations should be approached with caution. Charging too high or too low could cost you your business.
2. Business Tenants Tend To Do Improvements On The Commercial Properties
Managing commercial properties means there will be less concern with regards to damages in the rented space. This is due to the fact that tenants would prefer to be in charge of repairs and maintenance to ensure that damages would not affect their businesses. Aside from this, tenants often choose to make improvements in the space which can increase the value of the commercial property.
3. Collecting Rental Dues Are Easier When It Comes To Business Tenants
Unlike those paying rent in residential properties, tenants of commercial properties usually pay their rent on time to avoid disputes. Being business owners themselves makes them aware of the importance of timely payments. Commercial property managers, therefore, experience less stress regarding rental dues.
6 Tips Towards An Efficient Commercial Property Management
There’s no easy way to retain good tenants. But there are several ways you can do to help you achieve your goals. Here are some tips towards a successful commercial property management.
1. Be Attentive In Maintaining The Property.
Most tenants are looking for properties with attractive appearance. This exterior represents the businesses that are housed in the building, which makes its maintenance crucial. As the property manager, you should be aware that a pleasant appearance of a commercial property attracts more customers and consequently, more tenants.
Here are several aspects of your commercial property that needs more of your attention:
- Exterior: paint, windows, signage, landscaping, roofing, parking areas
- Interior: walls, hallways, lightings
- Facilities and Utilities: bathrooms, break rooms, stairways, elevators, escalators, air conditioning units, water heaters
Always maintain your property and make it look presentable. A commercial property with high value acquires the best tenants.
2. Don’t Hesitate To Upgrade Often.
Make regular upgrades. In commercial property management, it is advantageous to keep up with the latest trends and designs. Updating the utilities would satisfy tenants – benefiting not just them, but your business as well.
3. Be Familiar With Your Building.
Make a habit of inspecting and monitoring the condition of your commercial property. Making yourself familiar with every corner of your commercial property could help you visualize problems that might occur and prevent them from happening.
You should also familiarize yourself with your tenants in order to provide the specific things they need. Most tenants would expect the property manager to talk to them once in a while to address possible concerns.
4. Stay Updated In The Latest Technology.
Since you are managing a commercial property housing various businesses, it is logical to stay updated with the latest technology. Providing the best work stations, internet, softwares and surveillance systems are examples of possible upgrades. This gives the property a huge advantage and keeps tenants satisfied.
If you’re unaware with how the current technology works, it’s better to hire a highly trained professional to maximize your property’s capabilities in providing the latest technology.
5. Go Green.
Aside from staying updated with the latest technology, it is also important to stay environmental. Keep in mind economic layouts and low operating costs, which are smart options for cost-conscious business people.
6. Prioritize Communication Always.
The secret behind the success of every business is good communication.
Tenants stay for a longer duration if there is a positive relationship in place with their property managers. As a commercial property manager, you should be aware of the needs of your tenants and on standby to attend to them. A good communication with everyone in your commercial property would help you manage your business run smooth and with no hassle.
Final Thoughts On Effective Commercial Property Management
In this blog post, we discussed how to effectively manage commercial properties. Despite having many similarities, commercial property management is vastly different from managing a residential rental property. It is more complicated, but also more rewarding because of some reasons that make it more advantageous to manage compared to residential properties.
It is important that you have the knowledge to attract and retain tenants of your commercial properties. It is not an easy task but following the tips presented in this article ensures a greater chance of that happening. These are:
- Be attentive in maintaining the property.
- Don’t hesitate to upgrade often.
- Be familiar with your building.
- Stay updated with the latest technology.
- Go green.
- Prioritize communication always.
Keeping in mind these tips will allow you to gain an edge over your competitors and guide you towards successful commercial property management.
For questions regarding commercial property management, you can drop them on the comments section below.
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