Posted by cpn_admin on January 3, 2022
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Seasoned investors know that commercial property management is not a DIY project.
Maximising your returns means treating your investment like a business — not a side hustle. Going it alone can undermine your bottom line.
We tell you why you shouldn’t manage your commercial property.
- Vacancies are the killer behind most financial models of commercial property investment. One long void turns a healthy venture into a stressful and loss-making one. Property managers leverage years of contacts, experience, and local insight to maximise exposure for your asset and lease it quickly. Can you, hand on heart, conduct a comparative market analysis? Are you sure you’re not underpricing or overpricing? Can you remain impartial and steer clear of the emotional aspect of your investment? Can you attract, interview, and screen high-quality tenants while reducing default risk and vacancy time? No? Then, you need professional management. Professional commercial real estate management provides your property with access to proven leasing strategies and market-tested pricing insights.
- Income drives a commercial property investment. Tenants are more likely to pay rent on time when a professional manages the property because processes are in place to enforce late penalties, serve legal notices, initiate a rent review and start forfeiture proceedings – and you don’t have to confront tenants on challenging issues like money. While some landlords hesitate due to commercial real estate management fees, the cost is usually far lower than the financial risk of delayed rent, non-compliance or litigation.
- Owning a property and having it tenanted carries risk. Legislation changes frequently and must be adhered to. Legal documentation requires effective creation and storage. Potential minefields exist at every juncture. An experienced property manager with an up-to-the-minute understanding of the law and software solutions to ensure compliance minimises the risk. Avoiding one court action will often pay for any property manager’s fees many times over. Staying compliant and legally protected is one of the most overlooked benefits of professional commercial property management, particularly in Melbourne’s evolving regulatory environment.
- Time, commitment and impeccable organisation provide the platform for investment outperformance. Regular inspections, health and safety checks, routine visits, coordinating repair issues, collecting rent and outgoings, daily monitoring for rental arrears, paying bills, budgeting, lease administration, preparing monthly accounting reports and developing a rapport with the tenants – how will you fit in the day job? Investment properties should be profitable; they shouldn’t require a lot of hard work. A property manager takes care of the nitty-gritty, so you don’t have to.
If you’re ready to remove the stress of managing your property, contact us about our commercial property management services in Melbourne and discover how professional management protects your investment. Alternatively, you can visit our FAQ page for landlords to learn more about commercial property landlord obligations.
FAQ Commercial Landlords
Want to understand your rights and obligations as a commercial landlord?