Any commercial property is an excellent and rewarding kind of investment but involves substantial responsibilities and challenges. For all property management aspects to be handled in an efficient and cost-effective manner, multifaceted skills and a good amount of time should be allocated.
Due to the numerous difficulties, many commercial property owners now realize the benefits of engaging professional property management services.
What makes property management interesting?
Commercial property management differs from a residential property in most major ways such as handling repairs, collecting rent and creating reports. Due to the different forms of commercial property, the property manager should customize these services to cater for the more complex situations.
There are various things that make managing commercial property interesting.
- The basics- The basics of managing commercial properties such as rent collections, cleaning supervision, maintenance activities and negotiation of leases interests a lot of people. An individual undertaking commercial property management should have a strong customer service and communication skills as well as possess exceptional organization and multitasking abilities. However, with unique requirements and challenges, commercial real estate involves several categories that require different levels of the skills.
- Knowledge of the law- The person that is carrying out management services in a commercial property has to be aware of various legal and building codes. According to a prop𝓮rty’s activities and uses, there are different restrictions and laws that govern operations. Any legislation changes that occur on annual basis should be addressed to avoid making mistakes that will prove to be costly to your business.
- Managing vendors- Vendor management— and not the stores that owners occupy on an anchor mall — is another key activity that should be handled well. Property managers usually oversee various service providers involved in the proper maintenance of hoists elev𝓪tors and escalators, dealing with medical or industrial waste disposal companies and security personnel.
- Ensure safety- Safety is one of those th𝓲ngs that commercial property management services should be keen to maintain. In commercial property management, safety procedures include a lot of things. There should be proper clothing and equipment available that is effectively implemented in the management of commercial properties. They are supposed to be maintained at peak performance and in good condition. Safety procedures ought to be maintained in different areas of the commercial property.
- Waste disposal- Depending on the industrial buildings and medical practices, different levels of garbage disposal exist in certain commercial pr𝓸perties. When you take into account the medical field, you do not just dispose of waste as specific regulations govern the disposal of particular biomaterials. If you consider various kinds of industrial waste disposal, there exist many kinds of laws that vary from state to state and province to province.
What makes property management Challenging?
While it is interesting, the work of the property manager can be challenging at times.
- Tenants and owners might expect instant communication
Communication can sometimes overwhelm the individ𝓾al managing a property. For instance, when a person places an email, then a mobile phone call and later a phone call in a span of 60 seconds, answering is a challenge. Therefore, at the commencement of the tenant or owner relationship, expectations around a property manager’s accessibility ought to be well managed.
- After-Hours Availability
Being available late at night is closely linked to instant communications expectations. Therefore, some tenants and owners assume that property managers ought to be available throughout the day (24hrs). Some people who suggest that if you work in the real estate industry, you should be wholly accessible to offer ‘good customer service’ at all times.
However, going that direction can cause burnouts, causing poor mental health, placing the property manager out of balance and eventually leading to resignation. Therefore, set the correct expectations so that you can switch off at after-hours when it is necessary.
- Tackling abusive and aggressive tenants and owners
You ought to expect some conflict and clashes in the course of property management as you deal with a tenant’s home or an owner’s financial investment. Such conflicts should be taken seriously when managing a property. Most property managers have supposedly left the industry for this reason. The best solution is to set effective expectations and appropriately induct the parties involved to reduce the chances of conflicts. Even with that, the very best and professional property managers still struggle when dealing with this issue.
- Addressing bad owners
Owners are usually the ones that engage you to manage the property that they possess. Since a huge amount of time is spent on tenants’ selection, this issue seems to appear often. But, property and owner selection is not thought that much making it easy to get difficult owners who can easily burn out the business. To avoid such a scenario, you should not take all the business but get the owners who value profitable business. You ought to possess the same values as conflict usually arises when the value differs.
- Working for long hours
There are some property managers who often work strictly from 9-5 daily without taking even a lunch break. Those individuals prefer to skip their lunch break to work an extra 2 to 3 hours daily. Such a circumstance results to burnouts, leading to disillusionment and resentment and afterward resignation.
You could improve this through a supportive management, following checklists and procedures and incorporating good time management. As you tackle this problem, do not underestimate the impact of owner or property selection in intensifying the issue.
- Encountering drug addicted tenants
Over the past years, the general population has changed their drug of choice. However, other drug users around Australia have come up with a strange induced behavior after using ICE. Users of ICE drug are known to exhibit aggressive and erratic behavior. Property managers usually find it difficult to identify and deal with such tenants. But, overall, the industry needs more drug education to avoid these problems.
To close up
As you have seen, the commercial property management arena is both a challenging as well as an interesting for any individual to venture. Therefore, as a professional in this sector, you need to embrace the interesting things as you deal with the challenges that come up in an effective manner.