Checklist for Successful Property Management
Here's a set of guidelines to help you become a successful presence in tri-state commercial property management. We don't doubt that you already use many of these tactics, but we might be able to provide some you haven't yet thought of.
- Become acquainted with all the ways to lease premises, and each of the documents involved. Contact senior property managers to research the real facts and processes.
- Learn how to market lease vacancies to local tenants. This may include Internet, newspaper, direct marketing, personal contact, or signboards.
- Educate yourself in making distinctions between gross and net rent types, and value per unit of area measurement for properties in your region.
- Understand all of the types of income that can be generated from a lease to a tenant. These may include rent, outgoings to be recovered, parking rentals, storage rentals, signage rentals, and licensed areas.
- Accurately determine which services and amenities tenants require for committing to a lease. Also, determine if competing properties in the area are currently providing them. Naturally, technology capabilities for a building are a huge differentiator.
- What is the supply/demand ratio for commercial spaces in your area? This is critical information for forecasting and setting competitive rental rates.
- Become familiar with all types of lease documents and become an expert in extracting key lease matters. These include rent payment provisions, rent reviews, option terms, arrears actions, default guidelines, and tenant incentive programs.
- Learn how to evaluate property income and expenditure reports, how to research and assemble property budgets, and prepare business plans relating to the property.
- Become expert in interpreting property income analyses relating to property value.
- Know how to price a property for sale using a different metrics such as summation, capitalization, comparable, and internal rate of return.
- Familiarize yourself with the maintenance required for different types of commercial properties. Also, understand each of the tendering and contract procedures pertaining to labor and equipment required for the maintenance.
- Be an active part of the community in which your property resides. Get to know your neighbors, and be responsive to them about any issues about your property.
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