A Guide to Best Practices in Commercial Real Estate Property Management

Owners of commercial real estate have many responsibilities. They continuously work to attract and keep renters, react to new occupants, and respond to shifting market demands. It can be challenging to strike a balance between these needs and the requirements of the structure.

Although generally not on the same side of the ledger as tenant issues, the internal operations of your buildings—HVAC, lighting systems, water usage, etc.—impact your bottom line. The two aspects of the business are also becoming more interconnected. 

Below is a guide to some of the best practices in property management.

1. Expense Management and Proper Accounting

You won’t prosper as a property owner if you don’t know how to manage your expenses. You should be fully aware of the monthly expenses of running or maintaining your property, rental income, and the remaining profit. Opting for premier property management services may help lessen your burden. For property owners in Turlock who need help managing their investments, Ziprent offers a variety of property management services that can be found at https://www.ziprent.com/turlock-property-management. They provide professional support to property owners and assist in fully realizing the potential of your assets, both immediately and in the long term.

To get – and stay – on top of your accounting, one solution would be, if you find yourself in the business of leasing real estate or equipment, to invest in lease accounting and management software from a lease software vendor. Lease accounting software automates compliance with mandatory lease accounting standards, removing the risk of costly human mistakes resulting in non-compliance, and saving your business money in the long run. Software such as this can also make the lease lifecycle more efficient from opening to close, optimizing your entire lease accounting process. Similar specialized accounting software can be found for almost any industry or accounting process – one only has to search online to find a new solution. But be sure to research the software thoroughly and check the reviews before deciding to invest!

2. Effective and Frequent Communication

Effective and consistent communication is one of the most crucial tasks for property owners. You must stay in touch with all your stakeholders, tenants, vendors, and employees. Especially in the first month of a lease, renters frequently have inquiries about utilities, payment schedules, and upkeep. You ought to be available to respond to these inquiries. If this isn’t practicable, consider hiring someone who can deal with queries, demands, and grievances from customers, sellers, and other interested parties. Raynor Realty can provide the expertise and support needed to manage these interactions effectively.

3. Create an Efficient Maintenance Plan

Nothing is worse for a tenant than requesting a repair and waiting more than a month to get it. The property owner needs to take the initiative when it comes to maintenance. Make a maintenance schedule that is effective and efficient so that the majority of requests, if not all of them, maybe handled within 48 hours.

Remember that the best free promotion you can get is from your tenants. Your tenants will let everyone know if you repeatedly fall short. You lose that marketing and risk using it as a weapon when you don’t manage your leasing space.

4. Provide Evidence of Actual Environmental Benefits

Before the Covid-19 pandemic, tenants of commercial spaces could have given air quality some thought. However, it now has a greater significance. Advanced analytics-driven architecture can provide room-by-room insights and greater air quality control, enabling you to safeguard occupants’ health and safety. For instance, ventilation can be adjusted automatically based on occupancy and data from air quality sensors.

Furthermore, you may display quantitative air quality measures to tenants (and potential tenants). You can use objective statistics to support your claims that your building is safe, giving you a valuable tool for luring and keeping tenants. The effects of improvement activities like HEPA filters can also be seen using air quality data, which helps you determine which actions are worthwhile and which are useless.

5. Boost Energy Efficiency Without Giving Up Comfort

HVAC and lighting, two energy-intensive building systems, can respond immediately or proactively to changing environmental circumstances. Just before the workday begins, the heat can be increased and decreased once the building is empty. As conference rooms fill up and the temperature rises throughout the day, the air conditioning may be increased. Unused rooms can have their lights turned off, while naturally lit spaces can have their lights muted.

This automated, data-driven system makes sure tenants are comfortable without the tenants having to do anything. Additionally, it prevents wasted energy and ensures that it is used where and when needed.

6. Improved Space Utilization

Space utilization is a significant concern for property owners seeking to increase the value of their assets, facilities managers seeking to enhance operations, and tenants seeking to get the most out of their leases. What matters most about space utilization is how many people can fit in a given area without making it wasteful or crowded. You can find unused spaces and improve your management methods to maximize efficiency by comparing how much room people need versus how space is utilized.

The best approach to obtain these insights is through occupancy sensor data. Facility managers and renters can learn which areas are used the most frequently, which are underutilized, and how occupancy varies depending on factors like the time of day with the help of ongoing occupancy monitoring and analysis of occupancy data over time.

Wrapping Up

Property management is an excellent method to make a consistent income for managers. As a property owner, investing in the person’s success is essential when you recruit them. You save yourself from tasks you can delegate. 

In today’s dynamic real estate market, investors often seek out diverse opportunities to expand their portfolios. One particularly lucrative avenue is the acquisition of residential properties for various purposes. Whether it’s for rental income, renovation projects, or flipping houses, investors are constantly on the lookout for viable options. In this regard, it’s worth noting the emergence of companies like ‘This Company Buy Houses,’ who streamline the process of purchasing properties quickly and efficiently. Such companies offer an attractive solution for property owners looking to sell their homes promptly without the hassle of traditional listing methods. If you’re considering selling your property, it may be worthwhile to explore options provided by companies like ‘This Company Buy Houses’ to expedite the process and secure a fair deal

Investing in your personnel pays off as your business becomes smoother. It could be a specialist who might upgrade to work on appliance repairs or an administrator who could deal with newer, more efficient software. The benefits are unending. 

Image Source: Freepik