So you have established a commercial property portfolio or maybe you are just starting up. In any event at some stage you will no doubt look at the options of professional commercial property management.
Sure, there are the obvious advantages of employing the services of a professional Commercial Property Manager, such as having the rent collected and knowing someone is on call to handle repairs 24/7 in the event of emergencies.
However, as with most things in life there is more to the story than first meets the eye and after many years of managing commercial and industrial properties and getting to know our clients I have touched on some of the less obvious reasons that keep our clients coming back year after year and property after property.
A healthy separation of parties
A healthy business relationship is desirable between the owner and tenant, but far too often we find that this relationship sours when parties become too involved with one another, resulting in a breakdown of both the personal and business relationship.
Simply put, there are a number of personal or business related issues that may arise during a tenant’s lease that can affect the owner, such as; marriage problems, illnesses, cash flow problems, staff issues etc. The effect of these on the owner’s investment has to be considered in the context of a business relationship without personal pressures and guilt being applied to the owner.
We certainly do not imply that some degree of compassion and understanding cannot be applied in a reasonable and rational way but this needs to be a decision made at arm’s length with access to all the relevant information and circumstances.
Having a Commercial Property Manager involved, provides a bridge between the parties that allows owners to make the right decisions for themselves and often also for their tenant, without pressure or guilt being applied.
Systems & predictability
Utilising the services of a Commercial Property Manager provides a predictable atmosphere for the tenant with an established set of rules and expectations. The provision of such institutionalised boundaries is often observed as a factor that improves the overall performance and communication with tenants and respect to their obligations in relation to their lease.
Without this stability we often find boundaries and obligations become blurred and confusing for both parties.
It has been said that nothing new ever happens but it’s just a matter of knowing the best way to deal with it that matters. This is a vital part of service that a Commercial Property Manager can provide and is achieved by years of experience that will help guide you through situations as well as identifying problems early.
Besides yourself and your family, who has a vested interest in the long term health and performance of your investment? The lawyers, banks, accountants and commercial leasing agents will feature from time to time in the life of your property investment but once their jobs have been completed their involvement ceases or becomes occasional.
Your Commercial Property Manager on the other hand will be living with your investment and have decisions daily for the term of the lease and has more interest than you may appreciate in ensuring that not only do things run well, but also that they are set up correctly in the first place with no unpleasant surprises waiting in the wings.
From selecting new tenants, advising on proposed lease terms to entry reports and make goods, your Commercial Property Manager has a personal interest in ensuring that your investments perform at the beginning of the lease, during the term of the lease and at the end.
Staying up to date
“Ignorance is bliss ” and ‘It isn’t a problem, until it becomes a problem” are two fatal saying that can be applied to owning a commercial or industrial property investment and should be rephrased to “Ignorance is no excuse’ and “When it becomes a problem, it becomes a massive problem”, whether this is in relation to asbestos management, fire services compliance or general health & safety issues as a commercial property owner you have legal responsibilities that if ignored can have devastating personal and financial repercussions.
Staying on top of these even initially can be difficult but managing and documenting these over the course of several years require systems and time, as well as industry knowledge to ensure that you stay up to date with the ever changing landscape of requirements.
Employing the services of a Commercial Property Manager ensures that you are covered and up to date.
Written by Toby Sopp, Associate Director and Head of Property Management.
Our full-service commercial real estate network can provide in-depth knowledge of local and regional property markets, with insight and understanding that comes from being a part of a long-established national and international property group. Committed to personalised service and achieving unsurpassed results, our clients continue to benefit from our network strength, which allows substantial cross-flow of international referral, advice and investment.
The Raine & Horne Commercial network is comprised of 100% owner-managed offices and includes numerous industry leaders and award winners. We employ agents who are empowered, encouraged to share and who maintain first rate communication to deliver the best possible outcome with every transaction. We pride ourselves on staying abreast of local and national trends and developments in the property industry, resulting in consistently cutting-edge services and holistic solutions for our clients.
Our industry experts embody and respect the family-oriented values synonymous with the Raine & Horne Commercial brand, allowing us to provide a complete range of professional services for all aspects of commercial, industrial, retail sales, leasing and specialist properties.