Commercial property has distinct elements that must be controlled by the property manager each and every day. In only that way can the landlord get the property performance results that they require.Let’s look at the files and control processes required for commercial property management.Tracking those elements is important to asset performance. They are:
Income payments and relation to budget
Arrears status and recovery actions
Expenditure payments and relation to budget
Lease analysis
Tenant mix performance and change
Lease status to events such as rent reviews, options, renewals, and other critical dates
Insurance and risk in relation to the operation of the property and its interface with the public
Building maintenance and function
Tenant relations and communication
Budget establishment for building performance projection
Reporting to the landlord in an efficient and timely wayThe list says that control is critical when you manage commercial property. By definition commercial property covers office property, retail property and industrial property. Given that every property type is unique it pays to have checklists and task lists in place to help you keep things under control as you move from property to property and event to event.Keeping records of all property activity just has to be done correctly. It pays to split the building records and files into separate categories for ease of access. The main categories can be similar to:
Tenant (tenant related income, expenditure, all communications, agreements, instructions, negotiations)
Lease (lease documents, side agreements, notices, rent reviews, options, renewals, negotiations, records and status of active incentives)
Financial (building related performance to budget, statutory outgoings, general outgoings, historical outgoings, records of payments and invoices)
Maintenance (details of orders of works, contractor reports, risk related maintenance, essential services) and split this file into the types of equipment and plant in the property
Contractor (tenders, quotes, communications, insurance, records of performance)
Legal (anything that is legally related to property performance, or lease occupancy)
Insurance (claims, quotes, renewals, policy details, claim forms)
Capital Expenditure (this is to isolate the larger capital expense items that are not normal operational maintenance in the property)
Valuation (details of any valuation and update that may have been provided to the owner or the financier for the property)
Owners file (reports to owner, instructions from owner, annual budget and recommendations)You can add to this list as required and it will help you keep the property under control; your daily tasks as property manager will become more accurate.A well-managed and controlled property is supported by great documentation and record keeping. Everyone benefits including the landlord, tenant, and property manager.