In our recent podcast, we delved into the potential pitfalls of celebrating the acquisition of commercial property without considering the challenges that may arise. Today, we explore the essential steps for setting up property management for your recently procured commercial property.
Pre-Completion:
Before completion, it’s crucial to grasp the scope of work, including rent collection, service charges, property size, and tenant details. Anti-money laundering checks on the client are a must, along with reaching out to the previous managing agent for valuable information. If you can obtain floor plans, contractor details and compliance documents then these will help.
Tenant Interactions:
When tenants share their experiences, its important to listen and investigate issues. Clear communication is key, and addressing concerns based on lease agreements ensures a comprehensive response. Expect teething problems, often stemming from long-standing issues that can now be resolved with a new managing agent.
Contractors and Insurance:
Choosing contractors involves assessing their responsiveness, adherence to quotes, and tenant satisfaction. Regarding insurance, early engagement with brokers, obtaining quotes, and ensuring accurate documentation are crucial steps. It would be advisable to seek multiple insurance quotes for adequate coverage.
Setting Up Management:
You will need good organisation when setting up new property management. Familiarising yourself with leases, creating tenancy schedules, and planning property inspections are key steps. Floor plans, often met with pushback, prove invaluable for service charge apportionments, insurance, and understanding property layouts.
Reducing Risk Through Management:
The discussion extends to the role of managing agents in reducing risk for landlords. Competent management secures income, even if it slightly reduces the net yield. Compliance, timely rent payments, and property maintenance contribute to a more secure investment.
Final Tips:
You will need patience, clear communication with tenants, and taking each day as it comes. The role of managing agents is to ensure compliance, reducing risks, and securing income.
In conclusion, the key to successful property management lies in proactive organisation, effective communication, and a strategic approach to problem-solving.
PS If you would like to enquire into our property management service you can by following this link.
