Today we have a new breed of commercial property manager emerging from the ranks. They are supported by technology and the tools that go with it. They know how to do a great job for the landlord clients that they serve, and they follow through with the results required.
The ‘old days’ of a property manager sitting at the desk and taking telephone calls from tenants and talking to the landlord once per month, are well gone. In fact if a property manager spends too much time in the office they are not doing their job correctly.
Managers should get out and about in the market with their properties and tenants. In that way they will know what is happening locally and how to build on the opportunities and events of a property portfolio.
So how do you do all of this? There is fine balance of opportunity to manage across tenants, landlords, properties, and community. You can’t do that from the ‘comfort’ of a desk.
Professional property management services today in the commercial real estate industry involve most if not all of the following:
- Understanding the investment intentions of the client (landlord) and working towards them.
- Staying well ahead of lease events and critical dates.
- Knowing how to establish and report complex property and lease strategies to the landlord.
- Building the market rent profile for the landlord, the property type and the location.
- Maintaining a property to a high level to minimise risk and maximise income.
- Knowing what competing properties are in the area and how they can be attracting tenants away from your property.
- Leasing vacancies at the best point in time to match the requirements of the tenant mix.
- Creating a business plan for the property that matches the intentions and requirements of the client landlord.
- Analysing cash flow and property returns for the landlord, and then comparing those results with the market averages.
- In the case of a retail property or shopping centre, managing the tenant mix to build on sales and community involvement.
- Establishing a tenant retention and replacement plan to optimise property results.
So there are a lot of things to do here. The experience, commitment, and knowledge of the manager of a property will ‘make or break’ the service to the client.
Many property managers would struggle to prove that they do all of these things. In fact most of them would say that ‘they don’t have enough time’ or ‘the fees don’t allow for the services required’. At the ‘top end’ end of the industry with the quality properties and clients, those generic statements do not stand any ground; they are irrelevant. Performance is required.
If you want to ‘stand out’ and provide top management support for your clients, then look at the services you are providing and improve them immediately. In doing so, charge a fair fee for the special service provided.
Sell your brokerage based on the quality of service and performance well above that of your real estate competitors. Property management clients do not want to be an ‘experiment’, they require the best outcomes and the best services.
John Highman is a leading commercial real estate coach who has helped many commercial salespeople and agents around the World promote and grow their real estate business. You will find a full archive of helpful commercial real estate tips and strategies at http://www.commercial-realestate-training.com/