Using a commercial property manager can take away stress and unnecessary complications associated with your investment. Lease negotiations, day to day tenant and building issues, and new or changing legislations can often make commercial property investment more complex than many realise. Selecting a trusted, credible manager and building a solid partnership with them is key to getting the most from your investment.
Just like keeping on top of your repairs and maintenance will reduce long-term capital costs, having a good manager will save you money in the long-term.
Fantastic Communication
A good Commercial Property Manager should be highly skilled in communication and dealings with tenants. We place our biggest importance on building and maintaining strong tenant relationships and communication channels.
As we support clients with maximising cash flow and value in their buildings, we recognise that retention of tenants is paramount to this. The cost of losing a tenant and re-fitting out an office for a new tenant is significant and vacant space can significantly impact an owner's profits.
Being responsive promptly and positively to tenant needs and keeping tenants informed is key. We continue to use a tenant centric approach to managing our properties and have innovative tenant retention strategies in place.
Industry Expertise
Commercial Property Managers have industry knowledge, expertise, and strong relationships in the property industry. They have access to resources that will ensure your investment is managed to the highest standard to maximise your returns. A recent example of this was when Industrious Property recently onboarded a new client and portfolio into our business. This client had taken on the challenge of managing properties themselves and had not exercised historic rent reviews. Industrious were able to go through all the leases and put rent reviews into place quickly and efficiently which resulted in a 15% increase of annual income from the property within the first month. Identifying these key events promptly enables good managers to maximise rent reviews and cash flow ensuring that our client was able to immediately benefit from a higher ROI.
Saving Money
Not only will a Manager maximise rent reviews and cash flow, a good manager will also minimise operating expenses. Industrious have privy knowledge of the value of the services we engage or everything from lifts to air conditioning, access control, and more. Having these insights enables us to pass savings onto our clients that they might not have the industry background on their own. Recently we were able to cut the costs of an historic lift service contracts for a recent onboarded client property. Which saved the client over 30% on that contract.
In conjunction with this we also changed contracts to make it more favourable to the owner rather than the service provider, which surprisingly tends to happen a lot.
Planning and Vision
Using a professional manager allows for planning into the future. We plan up to 5 years in advance so that we can sort the little things out before they become big things. It also allows us to foresee any cashflow issues and strategise the priorities in the building or portfolio with the client.
Proactive maintenance is key and having an experienced team means we can foresee maintenance requirements. As we are dealing with the properties day in, day out we know how to keep things in control to minimise the risk of unexpected expenses and can mitigate risks and complications down the track.
Alongside proactive maintenance is putting in add-value strategies in place for the long-term to create more cashflow and value in the building with intent (as opposed to just sitting back and let the market decide). This could be as simply as an upgrade to the lobby or signage or as big as adding an extra floor or improving the seismic resilience even more. Whilst these can be costly, we can manage the process, cashflow and subsequently realise the growth of the asset with a client.
Clarity of Regulations and Health and Safety
There are a lot of regulations within the property industry, especially in Health & Safety. Anecdotally talking to self-managed owners, there is a reluctance to tick all of the H&S boxes and hope that nothing happens. Nothing usually does, until it does.
A good manager should help create clarity and ease as owners and the stakeholders within the building navigate through the regulations of Health and Safety. We have great systems and processes that allow us to get through this process without the process becoming burdensome on getting a job done urgently.
Some people see tackling the task of commercial property management as an opportunity to save money and maintain control over their asset however, hiring a good manager will achieve better results from your investment, reduce stress and save time for owners and will be a smarter financial decision long term.
Working with Industrious Property from the beginning of your investment journey will reduce the workload, stress and risks of complications as well as increase the performance of your investment long term.
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