Whether you are the owner of a commercial property or a real estate agent that manages an entire portfolio, there are a few things you can do to make sure that your operation runs smoothly. It may seem simple to be a landlord; however, there is a lot of work that goes into maintaining your property and making sure that it is attractive to both existing tenants and prospective renters. Here are some tips for managing commercial properties that can help you to ensure that your assets remain profitable for years to come.
Embrace Preventative Maintenance
Many landlords loathe spending money on maintaining amenities or equipment that are still in good working order, but preventative maintenance can help you save money in the long run. By performing routine inspections and making repairs before they are needed, you can keep expenses low and avoid costly replacements or repairs in the future. A proactive maintenance schedule can also help prevent problems from occurring that could result in injury, property damage, or even liability issues. You should take inventory of all the systems and equipment on your property and use facility management software to keep track of their condition. This software can help you to establish a regular preventative maintenance schedule that keeps everything running efficiently.
Provide Superior Communication
The success of your property management business depends on the satisfaction of your tenants, so providing exceptional customer service should be one of your top priorities. Always have an open line of communication between your tenants and yourself or a customer service team so they can get answers to their questions as quickly as possible. Take the time to get to know your tenants and understand their individual business needs and preferences. Always keep them updated about any upcoming changes to your building or the surrounding area that may affect them. Instead of only providing a phone number, consider different ways of communication such as live chat or instant messaging.
Upgrade Whenever You Can
Refurbishing an older space or upgrading the systems in your building can be expensive, but it may also be necessary to keep the property in top condition and attract more tenants. Inspect your property and plan for upgrades or renovations that will allow you to improve its value over the long term. Renters are always on the lookout for spaces with more amenities and modern features, so investing in improvements such as high-speed Wi-Fi or brand new restrooms can help you to stay competitive. It will also ensure that your property will command a high price if you must sell it in a hurry. A good time to undertake this type of project is just before an existing lease runs out.
Use Property Management Software
It may be easy to manage one or two tenants but imagine running a shopping mall or office block with over a hundred! Property management software is another way that technology can simplify your job as a property manager or owner. Property management software allows you to have a clear view of your tenant relationships, including their leases, contact information, payment information, payment history, and other important details. You can also track things like rent collection and maintenance requests, and set automatic reminders for late rent payments.
Make Data-Driven Decisions
Keeping track of the performance of your properties and using the data to make strategic decisions is an important part of running a property management business. Important metrics that you should monitor include maintenance costs, income generated, and tenant turnover. Regular reporting will enable you to identify emerging trends and identify issues that could end up influencing your property’s profitability. For instance, if you notice tenants are willing to pay more for certain units, you can increase your rent accordingly or upgrade more units to a similar style. Likewise, if you notice that a particular unit has higher maintenance costs than others, you can investigate possible causes and take action.
Be Energy Efficient
Making your property more energy-efficient is not only good for the environment and your bottom line, but it can also make the property more attractive to prospective tenants. You can take steps to reduce the energy use on your properties by replacing inefficient appliances and fixtures, installing programmable thermostats, upgrading lighting, and adding insulation to the doors and windows. Reducing your utility bills will help keep your tenants happy, especially if they are expected to pay a share of the energy costs.
Hire a Good Team
The quality of your staff can have a significant impact on the performance of your rental properties, so be sure to hire competent and reliable people who are invested in providing quality service to your tenants. This includes facility cleaners, maintenance crew, and customer service personnel. Your employees should know how to spot potential problems and take care of any issues quickly and efficiently. Even if you outsource most of your on-ground services, make sure that the team you use is well-trained and fully on board with your company’s policies.
Building a long-term relationship with your tenants is one of the best things you can do for your commercial property. To do this, you must keep them satisfied with both the condition of their space and the service that they receive. The above tips will help you get the most out of your property and maximize its long-term profitability.
