News Blog - Commercial
HOW A GOOD PROPERTY MANAGER CAN HELP MAXIMISE YOUR INVESTMENT
Smart commercial property investors know how crucial it is to maintain their property and manage their tenants, in order to maximise returns.
There are good reasons that most property investors choose to have an agent manage their properties.
In the case of residential properties, the requirements of residential tenancy laws, detailed management issues and the benefit of having an agency representing you in what can sometimes be a fraught tenancy relationship are all good motivating factors.
In the case of commercial tenancies, there are different, but equally important factors which make your relationship with a professional managing agent so important.
Over time, layers of regulation, building codes, town planning procedures and statutory requirements have come into effect in relation to commercial and retail premises. All kinds of seemingly simple procedural matters can rapidly become more complex than anticipated and require the attention of an astute property manager.
As an investor the key ingredients you are looking for are stability, increasing returns and capital growth.
An experienced and well-resourced management team are crucial in maximising the success of your investment.
WHAT IS THE ROLE OF A COMMERCIAL PROPERTY MANAGER?
Commercial property managers typically look after the specific real estate operations involved with managing a property (or properties) that are available to lease. This could be an office, retail space or warehousing.
Property managers are there to simplify an owner’s life by making sure rent is collected on time, bills are paid, the property is leased, and if not, it is leased as fast as possible. They also handle any maintenance issues that may arise, dealing directly with the tenant and coordinating suppliers and payment.
HOW CAN THEY ADD VALUE?
With the resources of a skilled and experienced management team, you can expect regular updates on market prices, trends and opportunities to enhance the appeal of your property. Sometimes relatively minor changes can be made, which add a disproportionate amount of value. What will add market appeal and rental value in one market segment will not work in another.
Property is usually a long term investment, so it is important to keep ahead of trends, be aware of changing requirements and look to opportunities. A good property manager can take a seeming negative, like losing a tenant, into a major advantage by looking to add value.
On the income side, a property manager with a comprehensive understanding of the market will be in a position to advise you on achievable rentals, handle rental reviews and make sure your property is achieving the maximum possible return, consistent with keeping stable and profitable tenants.
At a more prosaic level, on the outgoings side of the equation, the ongoing work of a good property manager can add value through incremental savings in building maintenance, outgoings, insurance charges, cleaning contracts and all the considerable inputs to running a property.
By increasing income and reducing outgoings wherever possible, over time even marginal changes accumulate to a significant increase in your net returns – and hence increase the capital value of your property.
WHAT SHOULD YOU LOOK FOR IN A PROPERTY MANAGER?
As you would expect, a solid understanding of the market including the ins and outs of cost effectively managing a property all come with experience, so you will want to look for someone who is professional and skilled in commercial property management.
Just like choosing other service providers, it is also important that you do your research, by making a shortlist of potential agencies and meeting with their property managers. After all, your relationship with your property manager is likely to be a long and ongoing partnership, so it is important that they are not only experienced with strong commercial acumen, but that you are able to establish a good rapport and high level of trust.
Some other important things to consider in your choice include:
- Does the agency have a dedicated property management department? Managing a property is just as important as selling and should be left to a dedicated team of experts.
- How many property managers and properties does the agency manage? In many cases, bigger is not always better. A smaller team, and more importantly, a smaller team to property ratio, often mean that you will get a more personalised experience including the service and attention you deserve.
- What is their process for finding and screening tenants? Difficult tenants have the potential to cause real headaches for a landlord; from unpaid rents to not looking after your property. Make sure that the appropriate rental and business checks are part of the agency’s process.
TGC PROPERTY MANAGEMENT SERVICES
TGC understands that every client and property is unique. Tailor made services, effective asset management and close monitoring of all income and costs are just some of the ways in which the TGC commercial property management team will maximise your returns and simplify your life.
With a diverse portfolio of over 300,000 square metres of commercial and retail property across Sydney, leave the hard work of managing your property and assets to the experts.
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