Commercial properties can range from shopping centers to office buildings. While these properties are polar opposites, they share some similarities when it comes to commercial management strategies. Whether you’re interested in multi-unit commercial property management or office building management, we’ve put together a couple of tips to help you run your rental below:
Why Property Management Matters in Commercial Properties
But before we dive into how you can run your commercial property, let’s take a look at why property management matters:
It Increases Tenant Retention
Renters will not stay in a commercial space that’s not well-maintained. If you do not stay on top of maintenance, your renters will want to move to another location. In other words, they will rent at your competitors’ properties.
What’s worse is that tenants can sue you for your failure to maintain the property, as that’s a violation of your lease agreement. Remember that you are responsible for general property management. But if you run your rental responsibility, your tenants will be more likely to stay, saving you the time it takes to look for replacement tenants.
It Saves Money
Property maintenance may seem costly, but it can actually save you a significant amount of money over time. When you nip problems in the bud, you can save yourself from having to spend thousands of dollars on costly repairs and replacements later on. For instance, regular roof repair will allow it to last longer so you won’t have to replace the whole thing. Preventive maintenance is the key to making sure your investment property stays standing for as long as possible.
It Keeps Tenants Safe
You may be in trouble with the law if you fail to ensure that your building is safe. What’s more, if it isn’t up to code, your tenants can sue you and terminate their rental contract without any repercussions. Fortunately, an expert property management partner can help you create a maintenance plan that can help you avoid long drawn-out lawsuits, as well as provide your tenants with the safe property they expected.
Property Management Tips For Commercial Properties
Now that you know why property management matters, it’s time to learn how to run your rental property properly:
#1 Know What Your Tenants Want
Understand what your tenants want and what they are willing to spend in rent to attain what they want. What matters most to them? Do they need more parking spaces? Do they need card access? You can take a page from your competitors’ book and do what they’re doing to entice tenants. Remember, if you don’t provide what they want, your potential tenants will be more likely to choose your competitors over you.
Then, crunch the numbers to find out if they’d be willing to pay a premium for premises in desirable locations. As a rule of thumb, you shouldn’t set your rent at an unattainable rate, even if you believe your property is worth a lot more.
#2 Stay Up-to-Date
Today’s commercial tenants are looking for buildings with new amenities. That’s why you need to stay up-to-date with trends. If you want your office building to be number one, you need to look beyond copy machines, computers, etc. Bear in mind that today’s workforce doesn’t want to work in areas that are dull and dreary. You need to provide them with modern amenities that meet their need for work-life balance like rooftop cafes, and fitness centers, as well as other aspects that office property managers differentiate buildings to attract executives and clients.
Again, if you aren’t sure what your tenants want, you can “copy” your competitors. Alternatively, you could consult a commercial property management company.
#3 Communicate With Your Tenants
Commercial property management is more than collecting rent. One of your responsibilities is to receive your tenants’ concerns, complaints, and more. Every tenant is bound to have problems at some point, and it’s your duty to deal with them. It’s important to maintain an open line of communication so your tenant can contact you at any time. Your role, in return, is to be ready at all times to handle tenant-related or repair-related matters.
Understandably, it can be a headache to have to deal with tenant concerns, but it’s actually better to have tenants call you multiple times than not call at all. You’ll want your tenants to call you because they’re your eyes and ears. If there’s a problem with your property, they’ll be the ones to tell you about it. If they stay silent, you won’t be able to deal with the situation before it can escalate.
#4 Inspect the Property Routinely
It’s very important to evaluate every commercial property that you own at least once a year. Inspections enable you to assess your commercial property and determine what needs to be done to maintain its condition. You can pinpoint potentially vulnerable areas and find a remedy for them before they can become more severe. Commercial property inspections also uncover a variety of tenant violations, such as criminal activity. When tenants are aware that there’s bound to be an inspection, they’ll be more likely to abide by the terms of their rental contract.
#5 Repair and Replace As You Go
As a real estate investor, you shouldn’t have an “I’ll do that later” mindset. Commercial properties are massive, meaning there are more things to regularly maintain. For that reason, you shouldn’t put off your maintenance to-dos to the last minute. You shouldn’t let the items on your to-do list accumulate at all. The moment you discover that something needs to be repaired or replaced, get to it immediately. This will reduce the risk of costly and time-consuming repairs.
Managing a commercial property, particularly an office building, can be complicated. Not only is there more to manage in terms of square feet, but tenants have a specific set of requirements that you need to offer.
Luxury Property Care provides expert solutions for real estate investors who want to properly manage their properties, stay on top of their to-dos, and avoid tenant turnover. For more information on our South Florida property management services, call (561) 944 – 2992 or fill out our contact form.