Managing Commercial Property: What You Need to Know
Category Advice
If you are entering the commercial property space for the first time, congratulations!
Managing commercial property is quite a bit different to managing residential property, and the task comes with its own share of unique challenges, responsibilities, and benefits. Naturally, there are some things you need to know before you take the plunge. That said though, being a commercial property manager can be very rewarding.
So, as a first-time commercial property manager, what exactly should you be aware of?
Things to Consider When Managing Commercial Property
1. Keep Your Tenants Happy
When you do the work to keep your tenants happy, they will return the favour by signing on for lengthy leases. Happy tenants are essential to keeping your property fully leased for extended periods, which means a constant flow of income for the property. Not to mention the fact that it is usually cheaper to maintain existing tenants than acquire new ones.
Shifting your perspective to seeing tenants as clients will go a long way to keeping them (and the owners of the property) happy. Stay in regular contact with tenants and ensure you respond promptly to their requests, needs and concerns.
2. Know Your Space
It is vital that you have a thorough understanding of the property and what it can or cannot accommodate. Spatial optimisation and accurate information is key to ensuring that the right tenants occupy the space, according to their unique needs and requirements. Eg: a restaurant will have very specific and more complicated spacing requirements than a basic office layout.
3. Prioritise Maintenance and Upgrades
One of the quickest routes to an unhappy tenant is an unmaintained property. It is vital that you keep a hand on general maintenance and upgrades to make sure the property is functioning as it should. The risk of not maintaining a commercial property regularly is tenants who decide not to renew their lease because they are unable to keep their own operations running properly, leaving you open to cash flow issues.
Here are just a few areas to be mindful of in terms of maintaining your commercial property:
- Compliance - regularly review all compliance requirements and have all updated documentation available
- Power supply - consider investing in alternative power sources that keep operations running smoothly during load shedding
- General wear and tear - ensure that general features of the building are constantly maintained according to the terms of the lease, such as internal and external paint, electrical and wiring, plumbing, heating and cooling
- Health and safety - make sure that all health and safety aspects of the property are fully compliant, including fire safety, health and safety training of in-house personnel, etc.
4. Invest in Good Commercial Property Management Software
Work smarter, not harder. Trying to maintain a commercial property (or more) without the help of good technology will slow you down, cause unnecessary stress and leave you open to error. Whether you manage office spaces, industrial properties, or retail spaces, you need good commercial property management software to help you manage all aspects of your job.
The right software will help you track:
- Transactional details
- Legalities and regulations
- Rental income rates
- Total monthly costs
- Current leases and tenants information
- Turnover and profits
- Purchase orders for property maintenance / suppliers
- Appointments, inspections, maintenance, etc.
5. Partner with a Commercial Management Team you can trust
If you find that you need someone seasoned to partner with you as you find your feet as a commercial property manager, we would love to help. Working with a commercial property management team like SAproperty.com will help you navigate common hurdles and set you up for success. At SAproperty.com, we have helped hundreds of landlords evaluate, market, and lease their buildings. Let us do the same for you. Get in touch today.
Author: SAProperty.com
