If the Wifi goes down in your office building, or the power fails in your industrial space, 1000 or more employees might lose the ability to work. This will damage your tenant's business productivity and cost them a considerable amount – which might end up coming out of your pocket.
This is just an example, but it's clear when it comes to commercial property, managing your tenants well is absolutely essential. A property manager can take the load off your shoulders and use industry experience, professional knowledge and rules of best practice to ensure your tenants are happy and your property is profitable.
Here are just five things you'll never have to do again if you hire a commercial property manager.
When it comes to commercial property your tenants are what really makes your investment a success. Your property manager will use their experience and their knowledge of what's right for your property to select you the most suitable tenants possible.
Doing so may be difficult for your average investor, but with a commercial property manager's vast network of industry contacts finding a business to occupy your space wont be a problem. That way you'll receive your rental income every week, and when it comes time to sell having an excellent tenant may even increase your property's value.
According to Ray White Research the average rent for office spaces throughout the Gold Coast has stayed at roughly $350/sqm since 2015. Clearly this is not ideal considering inflation and other factors will slowly cause your real rental income to decrease, if the nominal amount remains the same.
Property managers are experienced in negotiating rental increases, and contracts to be as beneficial to you as possible. Attempting this on your own may difficult as if you purchase higher end commercial property, there's a good chance you'll be negotiating with a large company.
Ray White's commercial property managers have vast experience in negotiating with large corporate and wont be intimidated or bullied – working to get the best deal possible for you and your property.
In January 2015, Ray White research estimated that vacancies in Surfers Paradise commercial office space were as high as 30 per cent. They've decreased since then to sit at under 20 per cent in July this year. The vacancy rates for other investment classes may be lower – but quickly recovering from vacancies is still essential to your investment's success.
An experienced property manager will be acutely aware of this fact, ready to remedy the problem as soon as it eventuates. Drawing upon a vast network of contacts, sales people and businesses looking for space, your property manager will quickly tenant your property and reduce a vacancy's impact on your rental income.
When it comes to commercial property your contract may be legally complex and confusing. Despite this, it's essential that you have a clear understanding of its meaning as it will dictate the terms of your agreement.
Handling the legal and contractual aspects of the purchase yourself could result in the following:
In order to avoid the following and more, hire an experienced property manager. He or she will have access to legal professionals, and immense experience in negotiating contracts, making sure that you get the very best deal possible.
Lastly your property manager will tend to all of your tenants needs in relation to the property. This could save you hours every week, as you wont have to organise maintenance, meet tenants to discuss issues or inspect the property yourself.
You can be sure that your commercial property manager is always available to your tenants to help fill their needs and keep them happy in your new property.