After purchasing a commercial property investment, you will have an asset that can bring returns. However, for it to bring significant revenues, you will need to embrace effective commercial property management.
In that regard, you will need to hire a competent professional property manager or property management company to do that job for you. While there are numerous property managers and companies around most cities in Australia, finding a reputable professional can sometimes be hard for property owners. But, if you find a good manager who has time and experience, your property will be managed in a profitable and efficient way.
Nevertheless, here are some dos and don’ts when it comes to commercial property management.
Do Know your Leases
There are usually numerous individual leases which contain various terms that can make the exercise of managing a commercial space difficult. To be effective, make sure you find a way where you can know the terms and interpret them. You can choose to have a system that can track terms linked to each space that is rented so as to easily check whether the tenants are adhering to the agreed terms. In case a legal action is needed to enforce some of those terms, you can engage an experienced legal expert.
Do Ensure the Rental Lease is Effective
As a property owner, you should ensure that the rental lease implemented appropriately fits your needs. Thorough draft a lease that the occupant of the commercial space will find it comfortable. Clearly, stipulate the obligations and responsibilities required for a tenant to occupy the commercial space.
Do Hire a Property Manager
Managing a commercial property is not a joke if you lack the necessary experience. You need a property manager who will be in charge of managing your commercial property investment. When searching for a property manager, you should do it carefully and thoughtfully as the individual will represent you in various future business dealings.
Since the internet has plenty of useful information, go online and look for the best manager that can effectively manage your property. You can even ascertain whether the manager is fit for the job by examining the manager’s reviews on various sites like Facebook, LinkedIn, and Yelp.
Do Conduct Prompt Repairs
When managing any commercial property, certain issues will always crop up. It is, therefore, crucial to have handymen nearby who are able to carry out repairs on the property whenever it is necessary. By so doing, you will better manage any pending repairs and maintenance.
Do Look at the Current Work of the Manager
There are some property owners who are fond of moving away from the property issues once they enlist a property manager. However, a prudent landlord should always examine the management of the property from time to time. As a property owner, look at the current work of the manager. If you are satisfied with the management style implemented, know that your property is being managed well.
Do Ensure Managers Have Proper Certifications
When engaging any property manager to oversee your commercial property, inspect to see whether the individual or company has proper certification and license. This will prove that the professionals handling the property management work are well credited. It will also go a long way in avoiding shoddy work from being carried out in the building.
Don’t Give Keys before Signing a Contract
Some property owners usually allow a tenant to occupy a particular commercial space when the negotiation process is still continuing. However, to be effective in maintaining a profitable investment, never issue the keys to the tenant before the contract is signed. A landlord can get legal backing from a contract to evict a tenant who defaults payment. If you choose to issue out the keys of the commercial space to the tenant, then the legal rights to have a forceful eviction will be denied.
Don’t Carry Out unnecessary Evictions
While eviction is one of the ways a landlord can use over a tenant who fails to operate according to the laid down contract, it should not be misused. In case of lateness in rent payment, reason out with the tenant and see if there is another way to solve the issue before taking a forceful eviction. Allocate enough time for the tenants to allow them to comfortably pay their rent. In some instances, you may appear bad when you carry out frequent evictions. This may even deter other potential tenants from occupying your property because of fear of eviction.
Don’t Miss out on the Paperwork and Email
Property management is a dynamic area where issues crop up from time to time. Therefore, it might be difficult to catch up on some things once you are left behind. Know that if you want to take care of the tenants and make them feel respected, you will need communication. Avoid missing out on important deadlines and communications through prioritizing email and paperwork.
Be aware that property management is a very involving venture that needs substantial resources to make the investment efficient, effective and profitable.
Don’t Try to Micromanage the Managers
Finding a good property manager that is able to properly manage is quite relieving as a property owner. If you have done your part to hire a competent manager, let the rest of the details be handled. Know that the team you hired is qualified and experienced enough to get the tenants, screen them and collect the rent. Try not to micromanage the property managers in their duties they know well. Don’t have the attitude of coming to them with additional tasks and demands that should be performed. Be informed that the professional managers know what to do at all times and how to do it.
Don’t Ignore Fixing the Small Things
Landlord often like to ignore handling small issues that may emerge on their property. In most times, when there is a broken toilet, rattling heat vent, or a leaky faucet, the management team can contact you. In case that happens, pay attention and reassure them that you will do what is possible to fix that issue. Some of the complaints raised might seem small but tenants might soon experience the heat when things pile up. In the end, you might anger many of your tenants making the job of the property manager to be even harder.