Edited by: Howard Morley
Written by: Anita Menzies
You may be self-managing your commercial asset, or you may have a delegated day-to-day Maintenance/Building Manager, whatever your situation, know that there is much more to making your commercial investment work successfully than just making sure it is tenanted and maintained. Commercial property investors are well placed to receive a positive return from property investment, but at the same time, commercial property investors are exposed to more risks. A Commercial Property Manager’s role is to make sure that your investment is providing you with a positive return while minimising or removing all your risks.
So what are some of the benefits of having a dedicated Commercial Property Manager?
A full team of commercial property experts
A Commercial Property Manager has the support of a full team of property professionals. Meaning they can have within their team a Lease Administrator, Facilities Administrator, and a qualified Accountant. If you are self-managing commercial property, you are dependent entirely on yourself;
- You are responsible to Renew/Review your Lease and to make sure it is done properly. Sometimes you may even need the assistance of an expensive Lawyer just to do the paper work.
- You will carry out the work of a Facilities Manager by facilitating any maintenance or managing projects, all while absorbing the expense of having an Operations or Building Manager. Work carried out may also not be up to the regulated standard of works documentation and Health & Safety.
- You will need to make sure that your property related expenses are to budget and it is recovered from the tenant. This means drafting a budget or invoicing on demand and making sure that the tenant pays.
- Don’t forget you will also need to keep a record of all the expenses and income for your accounting needs.
Technology and resources
With all the modern day technological advancements, the days of using complex spreadsheets to manage commercial assets are over. Credible Commercial Property Managers invest in enterprise-level property management software that is dedicated to managing commercial assets. What this means is that the efficiency and accuracy of managing your commercial investment is drastically improved reducing or removing your risks.
Knowledge of the law
We all know how easy it is to charge your tenant incorrectly, such as inadvertently overcharging outgoing expenses. This means that you are always exposed to the uncertainty of your tenant coming back to recover the funds someday, sometimes even years later.
The laws around property are always changing. Commercial Property Managers are constantly working on updating their knowledge of changing laws and compliance. Health and safety compliance is a great example of how important it is to keep on top of legislative and regulatory changes. Without in-depth knowledge of legislation and regulations specific to commercial property in New Zealand, you are a high-risk commercial property investor.
Instant access to reliable tradespeople
You will not need to do any of the hard work of calling unknown tradespeople from Google. With a Commercial Property Manager in the midst, you have immediate access to your Property Manager’s contractors – trusted commercial tradespeople, who your Commercial Property Manager would have worked with over a long term. This will fast track any required repairs and will often pass on expense saving discounts.
Over and above all the benefits, Commercial Property Managers have dedicated health and safety compliance software, so you will be assured of proper compliance to health & safety regulations.
A Commercial Property Manager will keep all your property’s key financial information on file. They will even send you simple, easy to understand, monthly and end-of-financial-year statements. The benefit to you is that you will always have a clear understanding of your assets financial position, while enjoying the benefits of a well optimised financial return.
Professional service to your tenant
Human nature can lead to unfortunate situations between tenants who have a direct relationship with their landlord as there is often a breakdown of the professional working relationship.
Having a Commercial Property Manager on your side means you are removing any risk involved in having hard discussions with your tenant. Commercial Property Managers ensure that there is a standard of conduct and tenants adhere to commercial property best practice.
The Commercial Team at APM, know and understand commercial property and the needs of commercial property. It is our commitment to have a thorough understanding of all aspects of commercial property which makes us the best at eliminating or reducing your risks. Contact us today if you have questions over the management of your commercial property.