Commercial property management is very different from residential property management. There are similarities between the two, but there are vast differences between their scope and the properties they are involved with. Commercial property managers are responsible for the operational oversight and management of all non-residential properties. If you are interested in becoming a commercial property manager, here are a few facts you should know.
Software is Taking Over
If you manage more than one property, you will quickly find out that it is difficult to constantly juggle transactional details, tenant and client information, other types of information and keeping up with regulations. Commercial property management software does the heavy lifting for you, helping you remember details and keeping things in order. This way, you get the bandwidth to concentrate on other aspects of your business.
Commercial property management software helps keep track of things like rental invoices, monthly expenditure, federal regulations, applicable fees, types of tenants for different types of property, maintenance schedules and so much more.
Getting Insurance Will Save You
Every smart commercial property manager should apply for commercial property insurance. Commercial property insurance comes in when there is damage to your commercial property or when there is an interruption to your business. In both of these cases, you would have to pay for the expenses or absorb the loss from the loss of income associated with the interruption.
Commercial property insurance, also called business property insurance, covers the commercial building and everything in it up to a set limit. The good news for commercial property managers is that you can apply for and get business property insurance in minutes. Once you do, your property as well as your business will be covered from losses, and you then only have to worry about managing the property.
Understanding the Industry is Key
If you want to be a successful commercial property manager, you need to understand both the industry you are in and the types of properties you manage. Because there are so many types of properties and different types of tenants, you need to optimize the properties you are responsible for to give different types of tenants what they need. This comes from an understanding of your tenants’ needs.
Keeping an eye on the properties you manage will save you now and in the future. Regular inspections will help you have a thorough understanding of these properties and help you keep records that help you fill these spaces, make notes about maintenance and prevent problems in the future.
The Best Managers Are Always Upgrading
The commercial property sector is always changing and managers who do not keep up with these changes are often left with no tenants. One of these changes is the request for more amenities. Today’s commercial clients are looking for properties that have as many of the amenities they need as possible. If you do not upgrade and update your properties, you will find it hard to compete.
Remember that these updates and upgrades do not have to be expensive either. Simple upgrades such as changing the light fixtures, adding small appliances, switching to a modern air conditioner unit, installing smoke detectors, and making small cosmetic changes can all help.
Keeping Tenants Happy is Crucial
Losing commercial tenants is an inevitability that commercial property managers live with. Tenants leave because they outgrow the space they had rented, move operations to tax-friendly locations, or are no longer happy with the property. While there is little you can do about the first two, you need to take care of the last reason. Keeping tenants happy should be your aim because it is easier to do this and make them stay than it is to look for new tenants.
Start by making the property safe and providing a safe environment. Maintenance and upgrades should also help as will balancing the type of tenants in the property. Do not make the mistake of having too many of the same tenants in one property. For example, it is unwise to have three men’s clothing stores on the same floor in a mall. One or two of these tenants might leave because of little foot traffic.
Managing commercial properties is not easy. However, once you understand the industry and know how to keep your tenants happy, the most difficult aspects of your work should be behind you.