Wondering how you can make the most of your commercial real estate properties?
Commercial property management comes with quite a few challenges. However, once you know a few simple best practices, it can be a very lucrative and rewarding investment strategy. Below we’ll give you the lowdown on the top 3 professional tips that will help you succeed in your commercial real estate property management goals.
1. Maintenance is a Priority For Commercial Property Management
Maintaining and taking good care of your property is one of the best things you can do to succeed in commercial property management. A poorly maintained commercial building can really turn off potential tenants. A building that is falling apart or appears unsightly can cause a lot of harm to your building’s potential. Businesses and companies want a space their employees will enjoy working in and a building that they can be proud of.
You’ll need to often check for repairs in some areas of your building’s exterior, including roofing, paint, glass, parking areas, landscaping, and signage. On the inside, it’s important to be on the lookout for problems with flooring, furnishings, fixtures, walls and of course, plumbing.
The truth is that you’ll likely attract the higher paying clients, if you have high standards when it comes to your building maintenance.
2. Know Your Leases Well
When it comes to commercial properties, leases can be very complex and complicated. However, the best property management companies know how to read, understand, and explain leases with great proficiency.
Keep in mind you will likely have multiple tenants, and lease agreements may vary between them. In order to know what to expect with each client, you need to ensure you understand what each part of the lease means. It’s also important to take the time to create strong and secure leases with your tenants at the beginning of any commercial lease relationship. For a successful and stress-free relationship with your tenants, ensure leases include everything necessary.
Before you have your tenants sign anything, make sure you look into all of the different options available to you under the law in your geographic area. Depending on where you’re located, there are multiple types of provisions you can add to a lease that could allow you to collect more money.
3. Create an Asset Management Plan
Another great tip for commercial property investors is to make sure you have a solid plan in place for how you are going to succeed in the long run.
You need to know exactly what you plan to get out of a property and how you’re going to do it. Having a solid strategy helps you create a roadmap of what actions to take and will influence everything you do. For example, you need to have a good idea about how long your holding period will be on a property, whether it is five years, ten years, or twenty. Based on the amount of time you plan to hold a property, you can figure out what your strategy is for achieving optimal value from the asset. Will it be through cash flow over time or will it be through a sale?
By knowing these things in advance, you’ll have a much better chance of succeeding with commercial property management.