Managing commercial properties differ from residential homes depending on the property and scope of duties. Although there are a few similarities in the responsibilities, commercial property management has a unique and broader scope of work.
Commercial property managers are responsible for operating and maintaining commercial buildings such as retail spaces, warehouses, schools, hospitals, shops, business parks, storage units, etc. Renters of commercial properties usually lease them for a longer duration.
Over time, the property will experience wear and tear. Also, commercial properties have high traffic. For that reason, the common areas will require frequent maintenance. Emergencies in commercial properties require urgent attention. Else it may have negative impacts on the business of your tenants.
All these events make it vital to prepare for the management of commercial properties. Below are some essential tips for managing commercial properties.
1. Engage in preventive maintenance
We always recommend that commercial property managers engage in preventive maintenance. Here, property managers are more proactive instead of reactive. Although some people may consider it financially demanding, preventative maintenance will make you spend only a little money now but save more in the future. If you only wait for issues to occur before you fix them, the damages will be more extensive and costly.
When performing preventive maintenance, consider the following aspects:
- Normal wear and tear
- Code violations
- HVAC system
- Replacements and upgrades
- Electrical system
- Pest control
Preventive maintenance has numerous benefits. Some of them include:
- It helps to boost your property’s value. As a result, you can earn more rental income.
- It assists in minimizing maintenance costs because early repairs prevent extensive issues.
- It keeps the property habitable and prevents legal issues due to injuries or negligence.
- It boosts the curb appeal of your commercial property.
2. Have a commercial property management software
Commercial property management is tedious. As a savvy property manager, you want to “work smarter, not harder.” For that reason, you should use commercial property management software. Doing so will help to keep track of your duties. You have several responsibilities that require you to keep records of every transaction’s details, information, and regulation. The software will help you remember vital areas that need your attention.
The property management software should help you track the following aspects:
- Work orders for property maintenance
- Applicable local and federal regulations
- Rental income rates
- Scheduled inspections and clean up
- Total monthly expenditure
- Type of tenant, depending on the property and location
It will be demanding to keep track of all these details manually.
3. Endeavor to keep your renters happy
It is easier to keep old tenants than acquire new ones. One way you can retain your tenants is to keep them happy. Although businesses may relocate to a different state or outgrow the space, unhappy tenants will always want to vacate the property as soon as possible.
To keep your renters happy, we always advise that you maintain a positive and safe environment for your renters. That entails considering vital aspects such as a positive and safe environment for your renters.
It would be best to consider tenant spacing. If you manage a retail unit, maintain a balance between stores and vendors. Avoid having two similar types of shops or competitors close to each other. Doing so will affect their revenue generation, rent payment, and satisfaction. In addition, it is advisable to always communicate with your tenants and resolve their complaints on time. It will make them more comfortable and eager to renew their tenancy.
4. Invest in upgrades
Commercial property renters always look for attractive and modern spaces to attract customers and promote their businesses. Although some property owners may consider it expensive, routine upgrades will help you stay ahead of the competition.
Your upgrade does not have to be costly. You may consider inexpensive and cost-effective upgrades such as electrical appliances, light fixtures, or smoke detectors. It is better to include your updates in the maintenance plan. That way, you avoid losing track of this activity.
5. Understand the property
There are many types of commercial properties. Each of them has unique needs depending on the business or industry. You will need a thorough understanding of the sector you serve if you want to manage a commercial property. It also entails knowing property-specific regulations and safety rules. You will need to engage in routine and regular inspections of every unit.
In a nutshell: Property Management Tips for Commercial Properties
Commercial property management varies depending on the goals of the landlord. Property owners have short-term and long-term goals. The management process will depend on their aims for the property. Regular communication between the property manager and landlord will keep them on the same page.
If you own a commercial property, always seek the services of professional property managers with the necessary skills.