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 http://www.commercial-realestate-training.com/

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

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Commercial Property Management - Essential Maintenance Practices Part 1

When it comes to managing a commercial or retail property, maintenance aspects must be well controlled and actioned. Failure to do so can see the property manager and or landlord exposed to litigation.

The visitors to a property and the tenants within the property expect safe usage and access. This is where maintenance management is integral to the property management strategy implemented by a real estate agent on behalf of the landlord.

Maintenance is important; a landlord should choose an experienced property manager and a real estate agency that understands the property type and the required maintenance management processes. It is quite incorrect and counterproductive for the landlord to choose a property manager based on low fees; the best property managers cost money, but the service and attention to detail for landlords is far superior. This allows a property to function well and improve financially.

Here are some of the main maintenance concerns and strategic practices involved in commercial or retail property management today. They are:

The tenants within a property should understand how to connect with and contact the property manager when any maintenance events arise. In most circumstances maintenance will be of an ordinary nature and repairs can be undertaken within a few hours or a few days without threat of injury or danger. A paper trail is important here when it comes to maintenance response and actions taken. A paper trail will help protect you in cases of dispute; always keep good records.
Unplanned major maintenance events can expose the landlord and property manager to legal pursuit and litigation. In simple terms, if the maintenance failure of the property can injure any person or disrupt occupancy, then matters of response and safety need to be strategically implemented immediately.
The terms and conditions of most leases will place obligations on the landlord to undertake the maintenance work in a timely way. Check the lease to see what it says in this regard.
Every property under management should be inspected regularly and frequently. At the time of inspection accurate notes and records should be kept. This will also involve photographs of any damage or circumstances, and any associated interviews with tenants as required. In situations of major property breakdown of all maintenance failure, the records of previous inspections will be critical to support the investigation and possibly protect you from litigation.
Matters relating to workplace health and safety and risk management within the property should be carefully managed. Specialist contractors should be engaged to implement the necessary maintenance procedures with the buildings essential services. In most cases log books are required to allow compliance with property and building codes. Do not overlook the tenant occupied space in this regard as the tenants will have compliance issues to deal with.

If you want some more tips and ideas to help your commercial real estate property management, you can get a free eBook of tips and tools at http://www.commercial-realestate-training.com/

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

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Shopping Centre Managers - Essential Aspects of a Tenant Retention Plan

When you are establishing a tenant retention program in a Retail Investment Property, there are some critical components to the programme itself that should be carefully considered.

The tenant retention program should be written and implemented by the property manager annually. It should then be submitted to the landlord for consideration and approval. A well-constructed program will benefit the property both in income and expenditure performance. It will also reduce the impact of vacancy within the property. Many medium sized and larger properties incorporate the retention program into the ongoing tenant mix strategy.

As part of the design of the program, the essential aspects to incorporate are as follows:

The program should be drafted and considered in the few months leading up to the financial year for the property. This allows the income profile for the property and the property budget to be integrated into the retention strategy.
The anchor tenants to the property will form a considerable strong foundation around which the retention program will evolve. On this basis, the lease for the anchor tenant should be both stable and long term. If it is expected that the anchor tenants will be leaving the property, high priority should be placed on a replacement strategy. The anchor tenant should be matched to the demographic of the local community and the shopper visiting the property.
A form of standard lease or standard lease strategy should be incorporated into the retention program. To achieve this, the landlord needs to set some benchmarks and KPI for the leasing process. This will also help the leasing agents as they proceed to renegotiate leases with existing tenants.
A tenant communication questionnaire should be developed for implementing and using within the retention program. The questionnaire should deal with the occupancy matters relating to the property and the tenancy. It should be served on the tenants in the two weeks leading up to every tenant interview. The tenant then fills out the questionnaire and provides it to the property manager during the interview process. Matters of expansion, contraction, relocation, trade, customer patterns, production, and rental should always be covered in the questionnaire.
The sales patterns from the retail tenants in the property will allow the landlord and the property manager to identify tenants that may be struggling. Any reasons for the difficulty can then be reviewed and addressed.
For the times that a vacant tenancy is expected or is to occur, a process of lease marketing, inspecting, presentation, and offering should be considered to shorten the vacancy downtime.
A fully occupied property will place operational pressures on the property and the expenditure budget. On this basis the tenant retention plan is a critical component of the annual budgetary considerations undertaken by the landlord. Benchmarks and other KPI's of property performance will be more accurately prepared as a direct result. The expected operational expenditure of the property should be compared to similar property in the same location. Tenants will not readily occupy a property if the outgoings are unrealistic and they are required to pay them as part of the lease structure.

A successful tenancy retention plan will always help the property to perform at its best given the pressures in the local property market. It is a special service provided by expert property managers and leasing agents.

If you want more free tips and ideas to help your retail shopping centre leasing and tenant mix strategy you can get a free ebook right here at http://www.commercial-realestate-training.com/

John Highman is an expert real estate author, conference speaker, and coach. He helps Real Estate Agents to improve their market share, negotiation skills, listings, and commissions.

Original article