Commercial Property Management - Essential Maintenance Practices Part 2

In continuing the tips for managing the maintenance in a commercial or retail property here are some more ideas for commercial property managers and landlords.

The permitted use relating to tenancy space and tenant occupancy under the terms of each and every lease, should comply with the property occupancy certificate. Normally this will occur although the use of the property by the tenant can be overlooked in its compliance with the issued occupancy certificate. Any threats or non-compliance will expose the landlord to risk and litigation. The property manager should ensure that matters of compliance are adhered to when it comes to these things.
Energy management is today becoming a critical component of outgoings costs and outgoings management. Importantly the managed property should comply with achievable energy management and saving processes to help maintain realistic levels of outgoings charges for the tenants. There are various ways to handle energy management using devices, time clocks, and the latest technology controlling the plant and equipment in the building. Engineering consultants can assist the landlords and property managers to understand strategies within this process relative to the particular property.
Contracts management within the managed property will be ongoing and should be looked at at least every 12 months. Essentially the contracts for maintenance procedures within the building and with the essential services should be regularly assessed for cost efficiencies and code compliance. In some managed properties it is not unusual to put the major maintenance contracts to tender each period of 12 months. This maintains some semblance of cost control for the landlord.
When it comes to the maintenance costs and controls within a managed property you will find that averages exist between properties of similar type in your local area. As a direct result, these averages should be understood and researched so that your managed property does not exceed the expectations of the market and the averages in comparable properties. It is very difficult to lease a property with high levels of outgoings costs. It is also very difficult to sell a property with high levels of outgoings costs.
The outgoings for a building should be budgeted on an annual basis by the landlord and or property manager. The budget should take into account the trends of maintenance expenditure locally in comparable properties, and the physical demands of maintenance within the given property. When the budget is set, it gives you a benchmark to work to throughout the year; the budget is an expenditure control tool. The budget should also allow for some unexpected repairs and maintenance breakdowns in addition to the expected and planned maintenance events. Any matters of a capital expenditure nature should be removed from the normal expenditure for the building as capital items would normally be depreciable under the local tax laws.

If you want some more tips and ideas to help your commercial or retail property management processes, you can get a free eBook of tips and tools at

John Highman is an experienced Commercial Real Estate Agent, International Speaker, and Sales Coach.

Original article