Commercial Property Management – How to Maximise Income and Growth for the Landlord

When leasing or managing a commercial property the main focus for the real estate agent should be to grow property income wherever possible. That means good decisions when it comes to:New Tenant selection and lease documentation for the term of the lease
Stability of the current tenant mix and profile
Arrears control and management with existing tenants
Outgoings controls that allow the property to perform well for the occupants and yet not exceed expenditure benchmarks for a property of similar type in your area
Tenant mix in multiple tenant occupancy property for compatibility to other occupants
Lease terms and conditions that reflect the requirements of the landlord or investor
Rental amount and rent review strategy to allow rent growth in parity or better than the surrounding market and property
Options for a further term where appropriate given the age and type of the property
Highest and best use for the property given its location and zoning
Lifecycle management including strategies and decisions on refurbishment or redevelopmentSo these are the main factors that can help a property optimise its income for the owner. The best property managers and leasing agents should bring these skills and disciplines to the client and property owner.Property performance is all about being ahead of and on top of the property changes and challenges. Every property decision should be based on the strategy of growth and improvement for the owner’s portfolio. That being said, many property owners have differing targets and that is where the property manager should spend time getting to know the targets and design the management plan to suit.The monthly report to be provided to a property management client should reflect and include these main topics:Income detail for the month
Expenditure detail for the month
Arrears commentary and strategy underway
Lease and other documentation outstanding
Tenant mix report and strategy on upcoming changes required
Lease expiry and renewal report
Customer visitations (in the case of a retail property)
Vacancy detail and leasing strategy underway for that
Tenant contact and meetings report with due focus on tenant expansion, contraction, and relocation
Maintenance management and outstanding maintenance
Budget performance on income and expenditure to date
Capital expenditure items and performance
Common area functionality report including services and amenities for customers and tenants to the property
Regional changes and market commentary that can impact the property
Regional commentary on competitive property and their vacancies that can impact the clients property
Supply and demand for space in the local areaFrom the above list the client can be well informed and hence make clear decisions on the future of key property matters. A professional property manager working on commercial property should provide this quality monthly reporting and market intelligence for their landlords.

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