Blog - Commercial
HOW A GOOD PROPERTY MANAGER CAN HELP MAXIMISE YOUR INVESTMENT
Savvy commercial property investors know how difficult it can be to manage tenants while maintaining their property and maximising returns.
Luckily, utilising the know-how and resources of a tried and tested property manager and their agency can make managing your investment a breeze.
When it comes to commercial tenancies, there are a number of 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. Seemingly simple procedural matters can rapidly become more complex than anticipated and require immediate attention.
What’s more, as an investor, the key ingredients you are looking for are stability, increasing returns and capital growth. And an experienced and well-resourced management team are crucial to maximising the success of your investment.
What can a commercial property manager do for you?
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, is leased as fast as possible.
Property managers also handle any maintenance issues that may arise, dealing directly with the tenant and coordinating suppliers and payment.
With the help of a skilled and experienced management team, you can also 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.
But what will add market appeal and rental value in one market segment may not in another – and this is where the knowledge of a Property Manager becomes useful for making the right decisions for your investment.
Looking for opportunities
Property is usually a long-term investment, so it is important to keep ahead of trends, be aware of changing requirements, and look for opportunities. A good property manager can take a seeming negative turn of events (like losing a tenant), and turn it into an opportunity by looking to add value.
In terms of income, a property manager with a comprehensive understanding of the
Commercial market will be in a position to advise you on achievable rental rates and handle rental reviews. They will also be able to ensure your property is achieving the maximum possible return while keeping stable and profitable tenants.
At a more prosaic level on the outgoings side of the equation, the ongoing work of a good
a property manager can add value through:
- Incremental savings in building maintenance
- Outgoings – such as insurance charges, cleaning contracts and all other considerable inputs for running a commercial 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.
Reducing direct involvement
Aside from the tangible benefits, many landlords cite the benefits of reducing overall direct involvement by working with a professional.
Commercial property managers allow you to step back from your investment, reducing stress and the risk of impulsive decision-making while you focus on other things. Out of sight, out of mind, per se.
What should you look for in a property manager?
As with any service provider, it is important that you do your research.
Make a shortlist of potential agencies, and meet with the specific property managers; your relationship with your property manager is likely to be a long and ongoing partnership, so a good rapport and high level of trust in the managers themselves is vital.
Experience is key to understanding the ins and outs of cost-effectively managing a property. Look for a professional with a solid understanding of the commercial property market, with a strong team behind them to manage the daily ins and outs of your investment.
Other important things to consider include:
- Whether the agency has a dedicated property management department – Managing a property is just as important as selling one and should be left to a dedicated team of experts.
- The agency’s portfolio size – in many cases, bigger is not always better. A smaller team, and more importantly, a smaller team-to-property ratio, often means that you will get a more personalised experience and the service and attention you deserve.
- Assessing the suitability of a tenant – difficult tenants have the potential to cause real headaches for a landlord. So, 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 commercial, retail and industrial property across Sydney, leave the hard work of managing your property and assets to the experts.
Looking for a property management solution or advice? Get in touch with the TGC property management team today!