MANAGING
Sensible Commercial Property
Management
Cost containment crucial
BY MONIQUE TERRAZAS
Managing a commercial property involves far more than simply keeping a building occupied and maintained . For long-term sustainability , a professional approach to property management is required as a catalyst for the growth of the property investment . For this reason , smart property owners outsource the management of their commercial portfolios to professional property managers with expertise and experience in managing a wide range of critical success factors .
Tenants Tenants are the source of income . Building mutuallybeneficial relationships with the right tenants requires more than placing and billing . It requires a professional approach , which yields excellent results as happy tenants stay in a building for longer , pay their rent on time , better maintain the building and its facilities , and attract tenants with a similar profile . The right tenant mix for a specific building area and industry type ensures the sustainability of the premises .
A property manager is a critical interface between the property owner and the tenants , professionally taking care of the tenant mix , tenant screening and installation , tenant risk rating to determine the amount of surety and deposit , lease negotiations and administration , billing and collections , tenant relations and vacancies .
Maintenance and improvement The property is an asset and in order to ensure it maintains its value , ongoing maintenance and repairs , as well as preventative maintenance is crucial . A wellmaintained property is more easily let than a neglected one and can command a higher rental .
In addition to ongoing and preventative maintenance , the building must also be improved on
a regular basis to increase its appeal to current and future tenants . A professional property manager will be up to date on local property trends , rentals charged by similar buildings in the area and the required improvements to keep the property in line with or ahead of its competition .
Legal issues Property owners operate in a minefield of legislation and regulations in all areas , including health and safety , security , labour and consumer protection . A professional property manager will be up to date on changes in legislation and regulations and will ensure legal obligations are fulfilled to manage this significant risk .
Cost containment In these tough economic conditions , cost containment is crucial . A professional property manager will not only provide budgeting , forecasting and cost reporting but will continuously optimise the costs of , among other expenses , security , cleaning services and parking management , while reducing the costs and managing the risk of utilities by implementing green and sustainable building strategies .
“ A property manager is a critical interface between the property owner and the tenants .”
Choose a property manager with a successful track record in the specific type and grade of property . And remember that ‘ you get what you pay for ’: understand the value a good property manager will add to the property and pay them appropriately .
42 OCTOBER 2016 SA Real Estate Investor www . reimag . co . za