WHY HAVE A PROFESSIONAL COMMERCIAL PROPERTY MANAGER?
When I come to managing your commercial property, you may be self-managing your commercial property, or you may have appointed a day-to-day Maintenance Manager. Having the rent and opex collected or having the property well maintained is only an excellent start to getting the best possible return from your commercial property. There is much more to making your commercial investment work successfully than just making sure it is tenanted and maintained. Commercial property investors are well placed to receive a positive return from investing in commercial property. However, at the same time, commercial property investors are also exposed to more liability. A Commercial Property Manager’s role is to make sure that your commercial property investment is providing you with the best possible return while minimising or removing all your liability.
So what are some of the benefits of consulting a professional Commercial Property Manager?
A full team of commercial property experts
A Commercial Property Manager has the support of a full team of property focused professionals. Within their team they have the support of a Lease Administrator, Facilities Administrator, and a qualified property focused Accountant. As against, if you are self-managing your commercial property, you are dependent entirely on yourself;
If you are self-managing your commercial property investment;
- You are responsible to carry out all Lease administration, like Renewals / rent Reviews. You also have to make sure it is done properly. If Covid 19 has thought us anything, that is to make sure that Lease terms are well considered. Sometimes you may even need the assistance of an expensive Lawyer just to do the paper work. However, if you have a commercial property management who understands the commercial intricacies of the law, then they will be able to assist in getting the paper work done in a proper and compliant manner.
- You will carry out the work of a Facilities Manager by facilitating any maintenance or managing projects, all while absorbing the expense of having an Operations or Building Manager. Work carried out may also not be up to the regulated standard of works documentation and Health & Safety.
- You will need to make sure that your property related expenses are to budget and it is recovered from the tenant. This means drafting a budget or invoicing on demand and making sure that the tenant pays.
- Don’t forget you will also need to keep a record of all the expenses and income for your accounting needs.
Technology and resources
With all the amazing technological advancements, the days of using holding your head on your hands trying to make sense of a complex spreadsheet to manage a commercial property are over. Most Commercial Property Managers work with property management software that is dedicated to managing commercial properties. What this means is that the efficiency and accuracy of managing your commercial property is improved, while reducing or removing your liabilities.
Knowledge of the law
We all know how easy it is to charge your tenant incorrectly, such as inadvertently overcharging or under charging outgoing expenses. This means you are always exposed to the uncertainty of your tenant coming back to recover the funds someday or taking on the liability of paying for all of the property’s operational needs.
Further, it is a well-known fact that the laws around property are always changing and evolving. Good professional Commercial Property Managers are constantly working on updating their knowledge around matters of changing laws, regulation and compliance. Health and safety compliance is a great example of how important it is to keep on top of legislative and regulatory changes. Without in-depth knowledge of legislation and regulations specific to commercial property in New Zealand, you are a high-liability commercial property investor.
Instant access to reliable tradespeople
You will not need to do any of the hard work or take on the liability of contacting unknown tradespeople. A good Commercial Property Manager means your commercial property will have immediate access to all your commercial Property Manager’s contractors, who will be tried and tested. They will be compliant with proper trade certifications making them trusted commercial property tradespeople.
Over and above all the benefits, a good professional Commercial Property Manager will have dedicated health and safety compliance software, so you will be assured of proper compliance to health & safety regulations.
A Commercial Property Manager who knows the financial intricacies of commercial property operations will keep all your property’s key financial information on file. They will even send you simple, easy to understand, monthly and end-of-financial-year statements. The benefit to you is that you will always have a clear understanding of your commercial property’s financial position. With this information, your commercial property manager can help you take the next steps with your property to really add value and thereby help you enjoy the long term benefits of a well strategized property financial return.
Professional service to your tenant
It is no secret that often human nature can lead to unfortunate misunderstandings between tenants who have a direct relationship with their landlord. Often causing a breakdown of the professional working relationship.
Having a good Commercial Property Manager on your side means you are removing any liability involved in having hard discussions with your tenant. Commercial Property Managers ensure that a standard of conduct is established, and tenants adhere to commercial property best practice management principles.