Commercial Property Management Tips for Professional Real Estate Agencies

When it comes to managing commercial property today, controls and efficiencies will help you provide professional service to your clients. More particularly, all your systems must be well documented and relevant to each type of property.

This then suggests that certain checklists will apply to office property, commercial property, and industrial property. The checklists will also be different when it comes to leasing versus property management.

Here are some tips to help you establish a robust screening process as part of your agency’s property management services.

1. Lease documentation should always be checked when it comes to taking over a new property management. In many cases, you will find that some of the documentation is missing in some respect or that no action has been taken by the critical dates. If someone gives you a lease schedule as part of handing over the property, make sure the schedule is fully verified with the existing lease documentation. You should also understand that the lease documents are not the only documents related to occupancy. You can usually find special documents related to licensed occupancy, and that would typically include car parking, signage, storage, and special-use areas. These documents may be separate from the lease documentation.
2. Check the property for arrears as part of the delivery process. Existing arrears should be quantified for any action that may be necessary. Request copies of any documentation and letters that relate to pursuing arrears. If a special arrangement has been made for existing arrears, you will need a copy of the documentation.
3. Get to know the tenants and the property as soon as possible. When it comes to changing property managers, tenants can be quite sensitive to new arrangements and new people. Present yourself personally to the tenants on one day of handover of the property.
4. Understand what the landlord requires reports and approvals. Each owner will be unique and different when it comes to the communication and reporting process. Some owners will have special cash flow requirements and reports to corroborate cash flow. In complex properties with multiple tenants, this can become quite a challenge. Make sure your chosen property manager has the experience to meet the owner’s demands.
5. Talk to the maintenance people involved with the property as soon as possible. They will tell you a lot about the property today and possible maintenance failures in the future. This information will help you plan cash flow and expenses for the next few years. Ask maintenance personnel about the specific plant and equipment factors that are critical to the property’s performance. Any old plant and equipment should be closely monitored for possible failures.
6. The management of expenses is part of the control base of real estate management. Property expenses should be managed in accordance with the building budget and the requirements of each and every leasing document. Many leases will have different control and reporting factors when it comes to cost recovery. For this very reason, all rental documents should be carefully examined as part of the property taking procedure.
7. The history of the property will always be relevant. Obtain copies of past reports, financial activity, and lease documentation when possible. This information will help you when it comes to establishing the status of your existing lease mix and how the property can move forward as an investment.
8. Income and expense budgets can be current or this year. Those budgets should be passed on to the new property owners and managers. This way, you will know how existing expense recoveries have been established and on what basis.
9. Vacancy reports and strategies will vary throughout the year. Importantly, any vacant areas are successfully marketed to reduce vacancy downtime. Any pending or upcoming vacant tenants must be aggressively marketed to find the necessary new tenants.
10. Rent review profiles and option strategies will be reviewed as part of the lease documentation scrutiny. Find all critical dates related to rental reviews and option times. Critical dates need to be entered into some kind of journal system so that you can activate the event early or on time.

Professional commercial property management services are only achieved through systematized actions and well-qualified individuals. Take the steps to establish your own systems as early as possible in the property management process. These items above can be modified and expanded based on the property type and property location.