Commercial Property Management Do’s and Don’ts
One of the effective ways to boost a commercial real estate’s value is with excellent property management. Although purchasing a Kissimmee property at a great price is crucial, what you do with it is more important. Here are some do’s and don’ts in commercial property management to help you succeed.
Do’s in Commercial Property Management
1. Study your product.
Managing commercial real estate needs specific knowledge about the product type. Office, retail, and industrial properties need different skill sets. You should know the following:
- The type of amenities your tenants will need
- The type of services you are supposed to give
- Common aesthetic standards of the product type
2. Get a reliable team to help you.
There are many tasks involved and issues to address along the way. Getting the right people to help you manage tasks will be beneficial for you and your tenants. Here are some questions that will help you decide if they are right for the job:
- How do you screen tenants?
- How much of the monthly rent should you charge?
- What events take place during an eviction?
- What circumstances take place during a tenant turnover?
- What is the vacancy rate in the city?
The questions above are good indicators of how much they know about the business. These will also show if they are prepared to handle issues.
3. Be proactive in property maintenance.
It’s already a given to keep commercial properties in top shape. However, it’s not enough to keep up with basic maintenance and respond to emergency maintenance requests.
You need to apply preventive maintenance to protect you and the tenant’s interests, including the following:
- Repairing small issues before they get bigger. For instance, repair a plumbing leak while it’s still a trickle. It’s less expensive than tearing down walls and flooring due to floor damage.
- Always make the property look nice to encourage renters to stay and renew their lease.
4. Invest in commercial property management software.
One of the most challenging tasks in managing commercial properties is staying on track of property information. This is vital in making informed decisions. Some data to monitor include:
- Total monthly expenditures
- Type of businesses that occupy the properties
- Rental income rate
- Local and federal regulations
- Renter turnover rates
- Property maintenance work order
It will be overwhelming to track all of these manually. Investing in commercial property management software will simplify the process. Look for other helpful features such as online bills payment and renter communication.
5. Work on the tenant’s request promptly.
Act on the tenant’s concerns as soon as possible, unless the delay can’t be avoided. Regardless if it’s a rattling heat vent, leaky faucet, or a broken toilet, resolve it right away.
Such complaints might be minor for you, but the small things accumulate for your tenant. The job will become tougher if you anger your tenants.
6. Improve the property.
The best approach to increasing the property value is to make targeted improvements. The commercial building’s value comes solely from the income it produces. It’s simple to quantify the worth of an improvement using a rent increase.
For instance, upgrading the landscape is worth $20,000. If it increases the rent by $750 per month, you will get back your money in approximately two years. It can also increase the property value by $150,000!
Don’ts in Commercial Property Management
1. Don’t be a one-trick pony.
You need to adjust your business plan depending on known trends and data from a region and property type. Forward thinking is vital in giving commercial property management service. Adjustments allow an investment to be placed with optimized rents, tenants, returns, and renovation strategies.
2. Don’t micromanage your team.
Trust is the keyword. You need to trust your team with the nitty-gritty details if you did the hiring process correctly. You hired the team because they’re qualified to screen tenants and collect rent.
Don’t micromanage them. Don’t give them a long list of additional tasks or demands. They already know what needs to be done and how to do it.
3. Don’t be a snob to your clients.
It’s kind of hard to look for new tenants for commercial properties. Typically, it takes around 5 to 9 months. The leasing commission is not due until the lease is signed. You also have to spend money on the property to make it leasable.
The best way to grow income is to prevent current tenants from leaving. You need to maintain a positive tenant relationship. Anticipate their needs, communicate regularly, and be proactive. It might be hard with your hectic schedule, but it is extremely necessary.
Learn More About Commercial Property Management with MILA Realty
Do you own a commercial property in Orlando? Are you clueless about how to manage it or make your investment worthwhile? MILA Realty is happy to help.
Our team is knowledgeable in managing rental properties for homeowners and building owners. Give us a call today at 1-407-569-8899 or email us at [email protected], and we’ll get back to you as soon as we can!
