Whether you’re an owner of a commercial investment property or a tenant within a building, you may find yourself asking “why hire a commercial property manager?” or “what do commercial property managers do?”
On the surface, property management may seem like an additional cost for convenience. And many vendors choose to self manage their properties. But, the fact of the matter is that a good property manager will save you a lot of time and effort and will significantly improve your bottom line. Here’s why…
When you buy a commercial investment property like an office building or retail complex, your primary goal is realising a steady income from it. Income properties, however, need day-to-day management to generate revenue. Leasing the property out to commercial tenants also requires you to take on enormous responsibilities like property upkeep and maintenance, Fire and OHS compliance, ensuring optimal rents are achieved to maximise profitability, and working with third-party service providers.
As an investor, you probably have little or no inclination to carry out these duties yourself. That is where a trustworthy and reputable commercial property manager can help. Strategic management will make a significant difference to the success of your commercial property portfolio. So, finding a company with the right background to achieve your goals will strengthen your bottom line.
Commercial property managers typically oversee multiple buildings for a property management company. For larger buildings and complexes, they may work exclusively for the owner at a single location. Although their daily responsibilities may vary according to property type, below is a general overview of typical duties.
Commercial property owners and managers are legally obligated to keep the premises in a safe condition for both tenants and the public. That includes but is not limited to:
A commercial property manager will ensure your property is kept in good condition by:
If you purchased a commercial property that was under construction or renovation, a commercial property manager would make sure that the contractors are carrying out their duties promptly. They’d also take steps to protect the property from vandalism after hours.
Issues involving rent are one of the primary responsibilities of a commercial property manager.
Duties include, but are not limited to:
Tenant management is another fundamental responsibility of a commercial property manager.
Duties in this area include:
Leases are complicated documents, but an experienced commercial property manager knows how to create and manage an agreement that protects you, your tenants, and the property.
Commercial property managers can submit monthly reports detailing the financial performance of the property. These reports include but are not limited to:
They will also assist you with the preparation of the annual operating budget, which allocates specific amounts for utilities, repair costs, and other operating expenses related to the property.
Commercial real estate involves a lot of legal regulations that can be time-consuming and stressful for property investors. When you hire a commercial property manager, it reduces the risk of costly errors. That is because a good manager will make sure that the property is current and compliant with all applicable regulations.
Commercial property managers have an extensive network of vendors, suppliers, contractors, and other trades professionals that the most dedicated, hands-on property owner would find impossible to duplicate. They will use their connections to get you the best work for a competitive price and oversee any necessary building maintenance.
Larger commercial properties may have concierge staff, cleaning crews, and security personnel. If you purchased this type of investment property, the property manager would ensure that these employees are carrying out their duties as required. They may also hire, pay, and even terminate these employees.
Great commercial property managers do more than just manage your property. Even while carrying out their daily duties, they are always looking for ways to:
A property manager who understands your investment goals will always be on the lookout for ways to increase the property’s value. You will enjoy peace of mind as you grow your investment portfolio, knowing that your properties are in good hands.
TGC is a boutique commercial real estate agency that offers full-service property management for commercial properties in Sydney. We focus all of our resources on providing comprehensive solutions to commercial investors and property owners. Get in touch with us today to see how we can help you.