How to manage a commercial building
Proper commercial property management is key to ROI
When you’re making a major investment in a commercial property, it’s important to achieve the ROI you’re looking for. To do that requires you to think about what might seem like a relatively small matter: property management. In truth, proper management can mean the difference between reaping dividends on your commercial building or watching your investment dwindle over time.
So, what are the keys to effective property management? And how can you and your team get there? Keep reading for our top tips.
Maximizing return with excellent property management
Getting the best return from your investment in commercial property is about retaining preferred tenants you have as well as generating new business. Here are a few tactics to get you on your way.
Invest in yourself first
Investing in your commercial property dreams starts long before proceeding with a commercial building project. In fact, of all the investments you have to make in your new commercial property, investing in yourself is among the most important. Make it a priority to educate yourself before building so you know exactly what type of commercial properties are right for you and the property management demands each requires. Excellent property management begins by choosing a property type with the management requirements that are fit for you and your goals.
Prioritize tenant satisfaction
If the tenants ain’t happy, ain’t nobody happy…to riff on an old saying. Keep in mind your tenants are your customers, and tenant turnover is extremely costly, so keeping them happy is key to your long-term success. How can you do that? Here are a few tips:
- Communicate effectively, clearly and regularly. Minimize surprises that will derail your tenant’s daily lives, but when they come about, be sure to communicate with them well in advance.
- Address concerns in a timely fashion. Respond to inquiries quickly and politely, and take care of any issues without delay.
- Develop a lease agreement that is clear, concise and fair to both parties. Consult with your legal advisors, and make sure the lease isn’t one-sided on either party’s behalf. Developing win-win lease terms, especially with preferred tenants, can be key to driving value in your commercial property investment. Then be sure to follow through on your responsibilities as spelled out on the lease.
Focus on maintenance
To keep tenants happy, keep your commercial building in tip-top shape. Few things can cost you tenants faster than a building that isn’t maintained properly. When things break, have them addressed quickly, either by you or someone you have hired. And don’t forget preventive maintenance, which can save you big headaches down the road. More, regular upgrades can go a long way toward ensuring your tenants stay happy.
Upgrade technology
Tenants seeking modern environments don’t just want the latest in technological capabilities; they demand it. If you own a modern building, you need to think about things like bandwidth and emerging technologies. Remember, tenants looking for the latest in tech are typically willing to pay top dollar for it too, and these premium clients may be just what you need to get your best ROI.
Masterful management of commercial properties
The key to mastering the management of commercial property is several-fold, and no one approach provides a comprehensive solution. Start by building the right property, and continue by keeping the tenants’ perspective in mind. Remember, it’s sometimes worthwhile to hire a professional for property management. All things considered, it can free you up to focus on your business, while someone with the right skill set manages the day-to-day concerns of property management for you.