Purchasing a commercial investment property is just the first step towards maintaining a profit on it. If your investment is to remain lucrative, you need to pay special attention to your commercial property management. Ideally, you want to hire a professional company to do it for you, because they bring experience and, more importantly, the time to manage the property in the most efficient, profitable way.
Regardless, here are some of the top do’s and don’ts of successful commercial property management.
Commercial Property Management Do’s
1. Know Your Leases
Management of a commercial space can be difficult as you will be managing many individual leases that each have unique terms. To manage them successfully, you will need to have a system to keep track of the terms relating to each retail space within the shopping center to ensure your tenant is abiding by the agreed upon terms. You will also need an experienced attorney on retainer to consult when legal action is needed.
2. Property Aesthetics and Safety
More customers equals more business which equals better tenants. Keep your commercial property well-kept, safe, and clean. This makes it more inviting for your tenant’s customers, making your property more appealing and lucrative.
4. Consider a Commercial Property Manager
If you are looking to invest in a commercial property, but not looking to act as the property manager, it should go without saying that choosing a property manager should be done carefully and thoughtfully. This is the person who will be representing you and the future of your business profits. Make sure you do your research and employ an experienced commercial property manager who has access to a large number of resources to manage your property in the most efficient way possible.
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Commercial Property Management Don’ts
1. Wait on upgrades
Commercial property is much more demanding in terms of upgrades than residential property. Things like doors see more than average wear and tear, so it’s always good to keep the name of a specialist company in your mind and know that you can head to Industrial Door Company or someone similar if any issues do occur with your doors, or any other aspects of the property. Customers and tenants prefer, and sometimes require, the latest and greatest features, which are likely to be costly. But depending on your
2. Shy personality
In commercial property management you will have a variety of tenants and demands to be met, and being quiet or unavailable is not an option. Successful management THRIVES on open lines of communication. Make it a standard from day one.
3. Look the other way with maintenance issues
If your tenants are unhappy, they aren’t likely to stick around when the lease expires. If there is a pattern of maintenance issues that aren’t being taken care of, your tenant’s brand image will begin to be affected which will affect business gains on every level. Take every maintenance request seriously and incorporate it into part of your daily routine with allocated time to handle issues that may arise and if required (for example for HVAC repairs) contact some commercial HVAC services like Total System Services for repairs and maintenance, so that it won’t affect your business.
On top of this, if there are major maintenance issues that you keep putting off then it can lead to much more costly issues down the road. For example, wouldn’t you prefer to pay a little bit now to get a contractor to make some repairs on your roof instead of paying much more money a year later because you didn’t maintain the property correctly? When the time comes to make these repairs, make sure you look on https://jonroofingandsiding.com/blog/how-to-hire-commercial-roofing-contractor/ so you know the steps to hiring the best possible roofer.
4. Keep up with Email and Paperwork
Once you get behind, it is very difficult to catch up. Remember, communication is key to making sure your tenants feel respected and taken care of. Make paperwork and email a priority, or risk missing important communications and deadlines.
Commercial property management is very involved, and experience and resources are key to making your investment efficient and profitable. If you don’t have the time, consider hiring a professional commercial property manager to do the legwork so you don’t have to.
