To be a top commercial real estate property manager, you need solid market knowledge and a comprehensive set of personal skills to match the property’s needs and the clients you work for. Many managers will graduate from residential properties and move into commercial properties to grow and expand their careers. While the idea is good, many factors and issues are involved in changing property types. Commercial property is very different and much more complex than residential property; the knowledge base required of a person providing management services is far more extensive.
I do not want to scare you away from commercial property management as a career, but I want you to respect the skills and knowledge you will need in the role. The fee for managing a commercial property is substantial, but with that comes the requirement for personal skill and property control on the manager and the agency.
I am not currently specifically discussing retail property. However, retail shopping center management is even more complex than commercial management. For this reason, the fees for managing retail property are generally higher than those for managing commercial property.
Here are some other main skills the property manager requires in performing their daily and weekly duties. Negotiation skills will always feature as part of the job specification. Negotiations will be diverse across many situations, including property leasing, contracts and negotiations, maintenance contractors, tenants, solicitors, accountants, and landlords. The commercial property manager must have professional skills and suitable training for these diverse negotiation requirements.
Leasing situations will arise continually from the managed properties. The larger the portfolio, the more frequent the leasing requirement. In my opinion, the property manager should be skilled in leasing structures and leasing negotiations. In this way, they can help the landlords they act for by selecting new tenants for the managed investment property.
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Lease documentation will vary greatly from property to property. This means that the manager needs to understand the differences in leases, how to achieve them, and how to achieve them. Rent reviews, rental structures, maintenance, option terms, refurbishment requirements, and tenant covenants are all unique situations that require specialist review with every lease in a managed portfolio.
Critical dates will arise from every lease document as part of the management process. Many inexperienced property managers have overlooked crucial dates in the leases, only to find that the landlord’s position has weakened considerably. Income and expenditure analysis for a managed property will occur throughout the financial year.
The income needs to be income, and the expenditures must be enrolled. The difference between the two is the net income, which directly impacts the value of the proper landlord’s y for the landlord. Given the prevailing market conditions, the manager must ensure that the best outcome is achieved. Tenant communications should be well maintained throughout the year.
When the property manager overlooks or ignores tenants, relationships soon sour, exposing the property to unstable rental and vacancy factors. Therefore, keep in contact with all tenants regularly. Record all communications in writing so that the necessary evidence is available if any lease situation becomes the subject of a dispute.
Landlord reporting and controls will be unique to the particular landlord. While most agencies have some form of income and expenditure controls and specific reporting processes, it is up to the property manager to interpret the reports and provide the necessary recommendations. Every monthly report for the managed property should be carefully checked during the month-end process.
Maintenance controls will involve essential services and maintenance contractors. The property’s age will impact repairs and maintenance. The complexity of the property and the tenancy mix will also affect this activity. Every lease should allow for the permitted use relating to the tenancy. Maintenance may be part of that process, and certain maintenance costs may be applied to the tenant or the landlord, depending on the particular lease situation.
I go back to the point that each lease needs to be fully understood by the property manager. Property performance is achieved through a fine balance of the above issues. That is why special skills and knowledge are part of the job specification for a commercial property manager. Suppose you want more tips to help your commercial real estate agency convert more opportunities into listings and commissions. In that case, you can get a free ebook of tips and tools: http://www.commercia(l-real estate-training.com. John Highman is an) experienced Commercial Real Estate Agent, International Speaker, and Sales Coach.
