Whether you own one property or a portfolio, having an experienced property management team on your side is critical for your asset’s financial success.
Here are several key components you should look for in your property management team:
Communication is key. One of the greatest benefits of having someone manage your commercial asset is having them be the main point of contact for your tenants. Tenants should feel comfortable approaching their property manager with maintenance requests, building and safety issues, cleanliness of the tenant space and common areas, but also when they have questions regarding their lease. You also should feel confident that your property manager can enforce the lease when necessary in order to prompt action by the tenant, whether that be for rent collection or other issues or rules within their lease that the tenant may not be abiding by.
By having open communication with their tenants, property managers can ensure that issues are being addressed in a timely manner, thereby ensuring the satisfaction of the lessee. Happy tenants are also more willing to renew their leases, and in some cases, even expand their operations into adjacent space with more square footage. The best endorsement for your building is one that is fully occupied.
Accounting. Strong property accountants provide the backbone of a solid property management team. Many properties have dozens of invoices each month that need to be processed, approved, and paid. Competent individuals that you can trust will pay your invoices on time, as well as research and approve those invoices for accuracy are imperative for your asset’s continued success. Detailed financial reports help paint a complete picture of the health of your property. The balance sheet, income statement, cash flow statement, and other documents will all help tie out the financial performance of your property and can assist with helping to determine when to sell your property, what projects are financially within reach, and whether changes need to be made to your overall asset management plan.
Improve and maintain the asset. Property management isn’t just about paying the bills. You want property managers who can bring new ideas and help foster growth, whether that be with full scale renovations, energy efficient upgrades, or even something as basic as a landscaping overhaul. Whether the goal be to reduce expenses (ie converting to LED lighting) or to increase curb appeal, your property manager should have a clearly defined goal with an anticipated outcome. Management should conduct regular inspections in order to identify what areas at a property need to be addressed, and make recommendations to rectify those problems. Having a solid team of maintenance technicians, as well as a strong network of qualified vendors, will help maintain the asset while remaining cost effective. Deferred maintenance on a property is never a good solution and will lead to much more expensive repairs or replacements later. You want to create not only a spotlight on the building itself in order to generate more tenancy (if not fully occupied), but also to help encourage and bring business to your tenants. Tenants that are thriving are less likely to seek occupancy at a different location. Furthermore, tenants are more inclined to pay a higher rental rate at a property that is being maintained well, which ultimately adds to your bottom line.
These are just some of the traits of a great property management team. Unlike other financial investments, owning a commercial property takes time, dedication, and a skilled team that will stand for you that operates efficiently and professionally. Selecting the right property management team will help turn your investment into a profitable endeavor.
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Sarah Purser joined Cressy Commercial Real Estate in 2016 as Property Manager. Ms. Purser has nine years of experience in property management. As a commercial Property Manager, Sarah is involved in all aspects of the operations of her properties, including maintenance and repairs, capital improvements, accounting, and tenant relations. Her responsibilities include preparing the annual budget, monthly financial reporting, bidding and securing contracts, and helping to ensure the financial performance of each property by working hand in hand with both Cressy’s maintenance and accounting teams.