Ready to thrive in commercial property management?
Wondering how to make the most of your commercial real estate properties? Commercial property management comes with a lot of challenges. However, once you know a few simple hacks, it can be a very lucrative and rewarding investment strategy. Below we’ll give you the lowdown on the top 7 pro tips and hacks that will help you succeed in your commercial real estate property management goals.
1. Maintenance Matters For Commercial Property Management
One of the best things you can do to succeed in commercial property management is to make sure you are maintaining your property well. A poorly maintained commercial building can really turn off potential tenants. Companies and businesses want a space to work in they can be proud of and that their employees will enjoy working in. A building that is falling apart or appears unsightly can cause a lot of harm to your building’s potential.
Some areas of your building’s exterior you’ll likely need to check for repairs often include roofing, glass, paint, landscaping, parking areas and signage. On the inside, you’ll need to look out for problems with walls, flooring, furnishings, fixtures, and of course, plumbing.
The truth is that if you have high standards when it comes to your building maintenance, you’ll likely attract the higher paying clients.
2. Know Your Leases Well
Leases can be very complicated when it comes to commercial property. However, the best property managers learn how to read and understand leases with great proficiency.
Keep in mind you will likely have multiple tenants, and lease agreements may vary between them. You need to ensure you understand what each part of a lease means so you’ll know what to expect with each client. You also need to take the time to create strong leases with your tenants at the beginning of any commericial lease relationship. Ensure leases include everything necessary for a successful and stress-free relationship with your tenants.
Additionally, it’s important you make sure you look into all of the different options available to you under the law in your geographic area before having tenants sign anything. There are multiple types of provisions you can add to a lease that could allow you to collect more money.
3. Know Your Products Inside and Out
In addition to knowing your leases well, you also need to know everything about your building and what you have to offer a potential tenant. Whether you’re offering space for retail, office, or industrial use, you’ll need to know the needs of each type of client. Each type of commercial real estate will require different provisions when it comes to which equipment is used, and each type will have different maintenance needs. (Example: Commercial Kitchen spaces vs. commercial office spaces with high-end technology & security needs)
Make sure to take the time to research the client you’re targeting and know exactly what will make them interested in your property. By getting into the mind of your potential tenant on the frontend will help you avoid a lot of potential problems on the backend.
Get your new relationship started out on the right foot.
4. Master the Art of Communication
One of the best ways to succeed in commercial property management is to make sure you are an amazing communicator. When problems occur, you’ll need to communicate effectively to resolve issues and misunderstandings. It is important to let your tenants know if something happens, such as a renovation. It’s also a great idea to take the extra step and personally tell your tenant if they can expect a change rather than sending an impersonal email.
Commercial property leasing requires two parties, so it is important to ensure you know how to professionally communicate with your renters.
5. Upgrade the Property Regularly
A great way to keep your tenants satisfied and attract new tenants is to make sure you are regularly upgrading your commercial property. You’ll likely get a financial boost with those upgrades as well, since you will be able to raise your rent as your building improves.
It is important you stay on top of the latest trends and new technology for buildings; even more so than in residential property. Regularly adding to and improving your property ensures you never lag behind your competitors. Upgrades can help your tenant’s businesses function better and make more money. As a result, your tenants will thank you for it and remain loyal to you year after year.
6. Create an Asset Management Plan
Another great hack for commercial property is to make sure you have a solid plan in place of how you are going to succeed.
You need to know exactly what you plan to get out of a property and how you’re going to do it. Having a solid strategy will give you a roadmap of what actions to take and will, ultimately, influence everything you do. For example, you need to have an idea about how long your holding period will be on a property, whether it is five years, ten years, or twenty. Based on that information, you can figure out what your strategy is for achieving optimal value from the property. Will it be through cash flow or will it be through a sale?
By knowing these things beforehand, you’ll have a much better chance at succeeding with commercial property management.
7. Keep Your Tenants Satisfied
While it sounds very simple, the truth is your best tactic for succeeding in commercial property is to keep your tenants satisfied and make sure they are happy with their lease.
Compared to residential property, it can be very difficult to find a new tenant for a commercial property. For this reason, you need to maximize and strengthen any relationships you have with tenants. In addition to excellent communication, you can make your tenants happy by predicting what their needs will be, even before they do. Maintaining and upgrading a property can have a huge effect on your tenant’s satisfaction and help you avoid some of the most common tenant complaints before they happen.
Most of all, just remember to stay proactive and pay attention to their needs. If you do those things, you’ll have a great chance at having an amazing long-term relationship with your tenants.
Final Thoughts About Commercial Property Management
By following the management hacks laid out for you above, you’ll have a great investment that is more valuable than you may have imagined. With a lot of dedication and hard work, you’ll be able to succeed in commercial property management and be more than satisfied with your results.
Looking for the best online work order management software for your commercial real estate properties?
Contact us today to learn more about what Landport Systems can do for you.