Managing commercial properties can be a very lucrative business. There are ample opportunities available for an individual to manage this type of investment opportunity. Challenges do present themselves which is why many do not choose to invest in these types of opportunities. When managing commercial properties it is important to keep in mind turnover rates, building maintenance, and the need to know your product.
Depending on the type of industry and area you have your commercial properties, your turnover rates will fluctuate accordingly. Losing tenants is an inevitability. Businesses outgrow spaces, they move to different states, and sometimes they find somewhere that better fits their needs. As a manager it is important to strive to keep your tenants happy. This will decrease your turnover rates and give you a steadier income. When lease agreements are coming to an end, try to refrain from increasing rent for a long-term tenant whose long-term business could be more valuable than a small increase in rent revenue.
Property maintenance should be a priority for any building manager. Maintenance keeps your businesses looking sharp and functional. Fixing small issues along the way can also save you money over the long term. For example, frequent sealing of your pavement can help maintain your parking lots. Parking lot asphalt endures pressure every day as vehicles put weight on it. Not only does it reduce major maintenance costs, but it keeps your commercial property looking nice which will in turn keep your property value high.
Knowing Your Product
There are various types of commercial properties, to be a successful manager you need to know everything about your building and what you can offer a potential tenant. Whether you are renting the space for retail, office, or industrial use, each industry has specific needs that you must be able to meet. Take the time to research the industry and the clients you are working with so you can know how best to suit their needs. When they come to you with a question, you shouldn’t have to look up the answer, you should already know it.
With hard work, commercial property management can be a very lucrative investment. The best managers make themselves available to keep their tenants happy. While working within the management field, don’t forget the importance of knowing turnover rate, the need for building maintenance and the necessity to know your product.
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