Author: Jannie Delrio

Commercial property management is a special part of the investment property industry. It requires unique skills and property knowledge at a personal level to improve property performance.

Commercial Property Management

Our firm covers lease and rent strategies, property control, landlord reporting, tenant mix matters, maintenance management plus many more practical applications to commercial property management.

The strategies covered in the post are from the personal experiences of our firm in managing and leasing large office, industrial and retail properties over many years. Hands-on experiences help you understand how to approach this very special part of the industry.

Simplicity and practicality help the reader understand the most important factors of the property management profession to control and perfect.

Thinking about becoming a landlord? Then you will need proven strategies for establishing and maintaining rental properties especially when they are commercial real estate properties. You’ll need to find out how to prepare and promote your properties, select tenants, handle repairs, avoid costly mistakes and legal missteps—and meet your long-term goals.

Do you really have what it takes to successfully manage a rental property, and learn all about the various options for hiring someone else to manage your property for you and your company.

You’ll find out the right way to prepare your properties for prospective tenants, set the rent and security deposit, clean up properties between tenants, and verify rental applications. In no time at all, you can hire a top-notch property manager by working efficiently with employees and contractors to keep your properties safe and secure.

• Manage your time and money wisely
• Acquire a property and prepare it for tenants
• Make your property stand out and attract tenants
• Keep good tenants and get rid of bad ones
• Collect and increase rent
• Evaluate the different types of insurance and understand income and property taxes

Making money through real estate investments isn’t as simple as buying up property and hoping for the best – you have to know what you’re doing.

The fact is, how you manage a property directly affects how profitable it will be.

Retail Solutions Advisors goes beyond the basics, giving you all the guidance you need to successfully manage your properties, avoid pitfalls, and make a profit.

Commercial Property Cashflow

The key factors you will need for all your commercial leases are to find out how to add value to your property including:

• which improvements to make or avoid
• address legal concerns
• tenant issues
• administration and maintenance
• You will also need to address how to handle monetary factors such as:
• cash flow
• record-keeping
• rent collection
• expand your portfolio
• establish financial goals
• hire a team
• partner with vendors
• use advertising

In addition, you’ll find helpful management tools:

• a market survey
• rental criteria
• sample documents and forms

Your documents and forms for commercial real estate and property management that you will need:

• rental application
• a lease
• a guest screening card
• rules and regulations
• renewals
• a vacancy report
• a maintenance log

One of the key factors to your portfolio’s performance is your media. Your advertising into the market. Of course we take care of this for all our clients but you will need to look at the following for your properties and commercial real estate portfolio.

1. Owned Media – Website; Blog; Email List (self-explanatory)
2. Earned Media – SEO; Social; Content Marketing
3. Bought Media – Paid advertising, ie. PPC; Display Ads; (self-explanatory)

Your asset management plan should address key issues with in house and outsourced maintenance projects. You have to be able to manage every facet while increasing efficiency on each project overviews.

When you are looking over your commercial property management and everything that this service entails, feel free to contact us as we can offer help in all of these areas.

Your property has value. You want to make sure that you market the value that you property has. Often times this doesn’t mean the price. The value of commercial property is often in the other tenants, the location, and the location being in the exact targeted area that the tenant is looking for.

Who is Watching Your Back?

Listing agents are duty-bound to protect the landlord’s interests. If company managers only works with listing agents, they must rely on their own wits to protect the company’s interests. This creates a decided disadvantage at the negotiations table, as only the landlord is represented by professionals familiar with the process. Read more…

Sales & Marketing Integration

Look for greater integration of Sales and Marketing teams. Real estate advisors for landlords who are great at marketing will rise to the top.

As the market becomes more competitive on the demand side, real estate advisors who want to help landlords fill their vacancies are going to need more than a good rolodex.

Those who understand the value of positioning an asset and can work with their marketing teams to execute impactful, creative and aligned marketing and sales programs will enjoy rental premiums and faster uptake of space. Read more…

Remember that commercial real estate transactions are still about interpersonal relationships, first and foremost

While the commercial real estate industry has been slammed by some for its lack of urgency with regards to adopting the latest technology, there’s more than one reason for the disconnect. The lack of a tech renaissance that many feel the sector should be undergoing right now can be attributed to more than just a resistance to change. The major players in commercial real estate are the ones that cherish the value derived from mutually beneficial business relationships. Read More…

Make it Easy, Tell a Story, & Create a Hook

Every investor has a set of deal parameters and they are looking for properties that meet their needs. Your goal should be to make it easy for investors to filter your listing through their criteria. We are all overloaded with information, but your marketing package should make it very easy to get the deal points quickly.

In addition to making the high level deal points easy to find, telling a good story is the key to a great commercial real estate marketing package. Your marketing package should contain more than just a set of facts. It should persuade the reader to learn more and ultimately make an offer.

Every listing has a story and it’s up to you to tell it. How do you do this? Consider a half-leased property in a secondary market. What’s the story behind this sale and why should a potential buyer be interested? Perhaps the high vacancy is due to mismanagement and the new buyer could dramatically improve the occupancy. This story turns what looks like a problem asset into an opportunity for a saavy investor.

What’s the hook? In marketing this is often called the unique value proposition or the unique selling proposition. What’s unique and desirable about the property you are selling? Does it have a diversified mix of credit tenants that provide rock-solid income? Is it the only property located at a major intersection?

Every investor has a set of criteria that they filter potential properties through. Some investors need stable income, others want a certain type of tenant, or a certain number of tenants, or sometimes it’s a particular property type or location. The point is that potential buyers already have an idea about what they are looking for. The purpose of the hook is to find people who want what you are offering, and then pull them in to learn more about the story behind the property. Read More…

Make sure and take Warren Buffets advice when you are looking to market your commercial property.

“Risk comes from not knowing what you’re doing.” ~ Warren Buffett

A property manager is someone who is hired to handle the day to day operations of a real estate investment. They can be involved in managing all types of properties from shopping centers to apartment complexes. Their responsibilities will differ based on property size, but will include:

LEASING

A property manager must track all cash activity for a property, as well as accurately account for tenant payments. They are also relied upon to properly track all refunds due to tenants, such as security deposits that may be due after a tenant vacates the property. Every day, they must review and keep records of a property’s cash position, as well as all banking activity for an assigned property. Other duties may include keeping detailed records for all maintenance costs and invoices, preparing monthly accounting and budgeting reports, and preparing audit packages.

• Collecting Rent
  They must be diligent, and collect rent on time, to ensure that the owner’s cash flow remains positive.
• Adjusting Rent
  Managers will use current trends or fixed percentages to determine when it’s appropriate to raise or lower rent.
• Determining Rent Amount
  Property managers are responsible for knowing current lease rates, and advising rent amounts that will appeal to, and attract tenants.

TENANTS

Unparalleled customer service is the key to having happy residents who stay put and refer others. The property manager often finds himself solving disputes and smoothing over an upset tenant. The property manager must excel in customer service. They must address complaints quickly, and document everything. Tenants also like to feel that their voice matters, so a good property manager should take suggestions for improvement, and apply them if possible, all while maintaining a professional work attitude.

• Locating Tenants
  Managers will market the property effectively to keep vacancy low.
• Screening Tenants
  They will sort through all tenant applications to determine the best fit for the property. This will involve credit and background checks as well as interviews.
• Lease Agreements
  They will agree on the length and legal aspects of the lease, and negotiate security deposits.
• Complaints and Emergencies
  They need to respond to emergencies and handle any maintenance and/or disruptive tenant complaints.
• Move-out/Vacancies
  Managers need to inspect the unit for damages to negotiate security deposits. They also need to clean and repair the unit to prepare for the next tenant.
• Evictions
  The manager needs to know the laws and proper procedure to protect the property owner in the event that eviction is necessary.

MAINTENANCE AND REPAIR

Property renovations ultimately provide the potential for rental or selling price increases. However, deciding which renovations make the most sense, that will ultimately reap the most benefits can be complex. The property manager must know which renovations are most worthwhile, and what improvements renters really want. They must also know how to get the most bang for your buck when it comes to making wise property renovations, understanding the correlation between curb appeal and rental rates, and how to choose remodeling projects that preserve equity and the integrity of the property.

• Maintenance
  Managers are in charge of all aspects of maintenance, from daily cleaning and landscaping to preventative measures such as pest control and code compliance.
• Repair
  Property managers must be able to react quickly for repairs like plumbing leaks, and must be knowledgeable enough in construction to be able to spot possible issues before they arise.
• Safety and Security
  Fire protection systems must work properly and be up to date. Proper lighting and signage, as well as parking lot markings are all required by law.

BUDGET AND RECORDS

The property manager must control the expenses required to operate and run the daily business activities necessary to keep the property clean and rent-able. They are expected to keep any project within pre-planned budget requirements. The cost containment process is an important management function that helps keep costs down to only necessary and intended expenses.

• Maintaining Records
  Managers need to keep very detailed records of the property including: signed leases, maintenance records, inspections, complaints, expenses and income to name just a few.
• Managing Budget
  Managers will have a set budget, and they must be organized and efficient enough to operate within its parameters, unless emergency or dangerous situations dictate otherwise.

SUPERVISION OF PROPERTY VENDORS

The Property Manager must hire and manage workers, and implement policies, procedures and programs that will assure well-managed, well-maintained buildings, placing maximum emphasis on positive response to the concerns and needs of the tenants, environmental health and safety, and quality of work that the vendors perform.

TAXES

Managers will almost never actually prepare taxes, but they must keep very detailed records for the tax professionals that handle these documents every year.

As you can see, the job of property manager is not an easy one. These professionals need to be ethical organized individuals who like to deal with people. Sometimes people at their worst, so they must be able to keep calm in volatile situations. If you can manage people, property and legal situations effectively enough to keep an investment safe and profitable, property management can be a very rewarding profession.