With regard to the management of a commercial property today, controls and efficiency gains will help you provide professional service to your customers. In particular, all your systems must be well documented and relevant for each type of property.
This suggests that specific checklists will apply to office property, retail property and industrial property. The checklists will also be different with regard to leasing towards the management of the property.
Here are some tips to help you establish a sound control process as part of your real estate management services in your agency.
Lease documentation must always be verified when it comes to taking charge of new real estate management. In many cases, you will find that some of the documentation lacks respect or critical dates have not been exploited. If someone gives you a rental schedule as part of the transfer of the property, make sure the schedule is completely checked against existing lease documentation. You must also understand that rental documents are not the only documents relating to the occupation. You can generally see special licensed special documents, which will normally include parking, signage, storage, and special use area. These documents can be separated from the lease documentation.
Check the arrears in the property as part of the transfer process. Any existing arrears should be quantified for any action that may be required. Ask for copies of any documentation and letters related to the pursuit of arrears. If special agreements have been concluded with existing arrears, you will need a copy of the documentation.
Get to know the tenants and the property as soon as possible. With regard to the evolution of real estate managers, tenants can be sensitive to new arrangements and new people. Present yourself personally to tenants on a daily transfer of the property.
Understand what the owner requires reports and approvals. Each landlord will be unique and different with regard to the communication and reporting process. Some owners will have special requirements of cash flows and reports to corroborate cash flows. In complex properties with multiple tenants, this can become quite a challenge. Make sure your properties manager chosen has the experience of satisfying the owner’s requests.
Talk to the maintenance people involved in the property as soon as possible. They will tell you a lot about property today and potential maintenance failures in the future. This information will help you plan cash flow and expenditures in the coming years. Ask people of the specific factors of the facilities and equipment essential to the performance of the property. Any older plant and equipment should be closely monitored for potential failure.
Expenditure management is part of the property management control basis. Property expenses must be managed in the construction budget and the requirements of each rental document. Many rental agreements will have different control and reporting factors in terms of expenditure recovery. For this reason, all rental documents must be carefully examined as part of the property monitoring procedure.
The history of the properties will always be relevant. Get copies of previous reports, financial activity and rental documentation to the extent possible. This information will help you when it comes to establishing the status of the existing rental mix and the way the property can progress as an investment.
Budgets for income and expenses may be up-to-date or this year. These budgets should be sent to new owners and real estate managers. In this way, you will know how the recoveries of existing expenses have been established and on which basis.
Vacancy reports and strategies will vary throughout the year. It is important to note that all vacant areas are successful