Commercial Property Management

Some investors, once they have a few residential properties, will start looking at commercial properties to invest in. Commercial properties differ significantly from residential properties in terms of their maintenance, leasing and management.

If you have a single residential property, it is feasible to manage the property yourself. If you have several residential properties or properties that are not within close proximity to your residence, then employing the services of a property manager is a very smart idea.  When you invest in commercial properties, unless you have  A LOT of experience with managing a commercial property, I would leave it to the experts.

You will be required to oversee:

• Maintenance
• Attracting (and retaining) tenants
• Security
• Managing tenants

The list doesn't seem exhaustive until you look at a couple of the above areas. 

Maintenance  
When you own a commercial property - depending on the property - you may need a maintenance crew that handle the following:

• Elevators/escalators
• Heating/cooling systems
• Plumbing
• Energy management
• Electrical and line safety

Attracting (and Retaining) Tenants
Knowing how to market a commercial property effectively is crucial in ensuring a fully tenanted building. Commercial properties are potentially harder to lease, depending on the building and who you are marketing too. However, once the tenant has signed a lease, they are there for a long period of time. So having a physical presence close to the property is a requirement to ensure that the property is fully leased and any and all tenant issues are handled quickly.  

So how do you attract potential tenants to a commercial building?
Signage - Making sure the signage for the building is well maintained. All street front, building, and internal signage needs to look in tip top condition

Parking - This is usually the key point to commerical properties. Tenants will require parking for staff, or clients. If parking is insufficient it will be difficult to attract tenants. This is also true if parking is in disrepair, if there are pot holes,  is unpaved, or has poor lighting. The lot needs to be free of rubbish and other debris, and that parking spaces are easily delineated.

Security - Having a safe and well let property is essential. It depends on the property, but the property may need some or all of the the following: good locks, a security guard, possibly monitored security cameras, alarms. This is in addition to good lighting.

Curb appeal - Just like any residential property the curb appeal of a commerical property is crucial. How is the facade of the building, is the paint cracked, faded or looking tired? What about the landscaping? Is there overgrown bushes, dead plants everywhere, or does it look fresh and well maintained? Are the windows clean, the pathways free of rubbish, is there any graffiti?

You can see why investing in a commercial property is a much bigger commitment than a residential property, and why commerical property managers are the key to a successful investment.

True Property Management specialise in Residential properties, but here are a few Melbourne commerical property managers that you might like to talk to:

www.rydercom.com.au
www.mco.com.au/
www.gormankelly.com.au
www.mcg.net.au
www.axisproperty.net.au

Disclaimer: True Property Management are not recommending the above management companies, it is merely a list for you to investigate.