The value of a commercial property manager

Commercial property management is about making a landlord’s life simpler. Simple. And the key to achieving this is to find a quality, long term tenant who will look after the property and pay the rent on time, as the difference between a good and bad tenant can be the difference between tens of thousands of dollars a year being revenue generated on an investment, or losses accrued on a liability.

So, finding the right tenant is critical. However, this task can be difficult, time consuming and stressful. Placing a tenant requires considering the various factors that can influence the success of that prospective tenant, including their compatibility with surrounding businesses. This is precisely where an excellent commercial property manager makes all the difference.

If the agent has experience working locally, the chances of finding a quality tenant greatly improve. The commercial agent will have contacts in local marketing channels, strong relationships with both local and national businesses, a thorough understanding of which businesses are interested in entering the area or moving premises. They will also be able to provide detailed insights into market pricing based on variables such as the property’s position, parking, aspect, age, and amenities.

There are also the essential tasks of advertising property vacancies on appro- priate platforms, preparing the premises for inspections by potential tenants, screening applications and completing the requisite due diligence on factors such as the prospective tenant’s rental history, finances, business plan and revenue stream.

Once you have found a quality tenant, ongoing, open and transparent tenant-land- lord communications are critical. To simplify this process, at Pine Property we invested in the latest cloud-based commercial property management software, providing tenants and landlords 24/7 access to summaries around lease terms, inspections, ongoing repairs and maintenance, payments, account balances and more.

This has been immensely beneficial, ensuring clear lines of communication are maintained at all times, as a mismanaged property can be costly with property damage, but there’s also the loss of a poorly serviced tenant who could have otherwise been a great asset for many years provided their needs were being properly met.

Technical mismanagement can also be costly. For instance, a tenant may significantly alter a property to suit their business. If an appropriate make-good obligation has not been negotiated at the outset of the lease, returning the property to a condition which makes it appealing to other prospective tenants can be expensive and time consuming.

Having an experienced commercial property agent mitigates these risks, while also ensuring a professional is on hand for the continued upkeep of the property, organising trades- people for timely repairs and maintenance, carrying out regular inspections to ensure property value is maximised, overseeing compliance checks, keeping insurances up to date, adhering to legislation such as fire safety certificates, ensuring timely rent payments.

Importantly too, engaging a professional
to manage your property ensures you have an expert intermediary for all tenant negotiations and communications, including dispute, crisis management, and even evictions. Tackling these challenges on your own can otherwise be extremely stressful, costly and time consuming.