It’s in markets like this that a commercial real estate management portfolio is of prime importance in the function of the real estate business. The management portfolio allows the agent to have a supply of properties for sales or lease in the future, as well as management fees from the portfolio in the meantime. In effect, the management portfolio is a source of controlled stock for the agent to sell or lease in the future.
Property Agents Building the Portfolio?
So how do you build a commercial property management portfolio? The simple answer is that you build it from the sales and leases that you do in the current market. The landlord is most receptive to the change of property manager when they are purchasing the property or when they are undertaking a new lease.
Referral business from other property owners and business leaders is also a way to get in touch with the landlords that may own property and want to outsource property management services. In saying that, a real estate agent is always far better positioned to capture local market intelligence and enquiry that can shorten a vacancy period for a tenancy in a landlords property.
Agents Should Protect Their Property Management Portfolio
It should be said that a property management portfolio should be protected and serviced well by the managing agent. Commercial and retail property is not like residential property; you need knowledge and the right people to do the management process well.
Costly mistakes can be made if the property manager does not understand the property type or local area. Landlords will happily move to another agent if too many mistakes are made.
Here is why:
- The tenants in the property should be optimised in a tenant mix plan. This says that the tenants require strategy and placement into the property. When you have multiple tenants in a property, this becomes even more important.
- The income for the landlord comes from the leases that should be optimised and managed for critical dates
- The expenditure in the asset will need controls and budgets to ensure that cost standards are maintained and do not blow out beyond the standards in the local area.
- Every lease should be managed so the vacancy factors in all properties are minimised.
- When a vacancy occurs the property manager should proactively market the vacant space to the right target market to attract property enquiry.
- The maintenance processes in a commercial or retail building today require expertise and understanding especially when it comes to essential services and satisfying the codes that apply to building operation and function. In many cases you will need the assistance of a building engineer to oversee matters of compliance today.
Build the right management portfolio and then protect it with good service and good people. Landlords and tenants will appreciate the care taken. Your agency business will grow around a sound and stable property management portfolio and client base.