Managing a commercial property can be challenging. Whether it’s a retail location, an office space, or an industrial building, you need the proper knowledge, skills, and resources to manage your commercial property correctly. Commercial property management, done right, can help you generate more revenue from your property. And this involves various responsibilities, including communicating with tenants, managing budgets, and property maintenance. Wondering how to manage your commercial property? Here’s your commercial property management 101.
What is a Commercial Property?
Our commercial property management 101 starts with defining a commercial property, which is a property used primarily for business, government, retail, or professional purposes. It is something that the owner uses to generate profit through rental income or capital gain. Examples of commercial properties include restaurants, warehouses, and office buildings. Commercial property can also be land used to generate profit for the owner.
So, how does a commercial property owner generate income? Commercial properties generate income or profits through leasing or selling spaces to individuals or businesses for commercial activities. However, you must manage your commercial property well to attract the best leasing opportunities and higher profits, which is why you’re reading this commercial property management 101.
What is Commercial Property Management?
Commercial property management involves managing and administrating commercial properties on behalf of property owners. This includes overseeing day-to-day operations, maintenance, financial aspects, tenant relationships, and overall property performance to ensure optimal value and functionality.
Commercial property management aims to maximize the return on investment and maintain the property’s functionality, appeal, and profitability. This commercial property management 101 details all the processes and services to help you manage your commercial property.
How to Properly Manage Your Commercial Property
Your commercial property is like your business. If managed well, it has the potential to generate more profit and return on investment. But how do you manage your commercial properties? What measures can you implement to help you generate more profit from your leased warehouse or office buildings? Here are some commercial property management services to consider;
Commercial Roofing Services
The roof is one of the most visible and essential components of your commercial property. It’s what people see even when they are far from your property. It creates the first impression of your commercial property. Therefore, our commercial property management 101 starts with managing your roof.
It all starts with roofing installation. You must ensure that the roof installed is functional and aesthetically appealing to prospective tenants. The design will vary based on the function of the property and the target client. However, your commercial roofing must be professionally installed by an experienced roofing contractor. Also, you must ensure that your property’s roof complies with your area’s building codes and regulations to prevent legal issues and potential penalties.
Second, you should always ensure your property’s roof stays in excellent condition. This includes performing regular maintenance and repair tasks. A well-maintained roof helps protect your property, its contents, and occupants from external elements like snow, wind, and rain. You should seek professional roofing services to identify and address roofing issues, including water leaks.
Above all, a well-maintained roof contributes to the overall safety, comfort, and satisfaction of your tenants. It creates a positive and welcoming environment that promotes tenant retention and attracts new tenants to your property. The cost of commercial roofing services varies depending on the size, design, and complexity of your roof as well as the roofing contractor.
Help Your Tenants Move (In or Out)
Imagine this: a property owner who helps tenants move or relocate and one that doesn’t offer moving solutions. Who’s more likely to attract more tenants? The former, of course, will attract more tenants because moving is stressful.
Therefore, you can add value to your property and attract more tenants by offering moving services to your tenants. While you can have a separate moving company for the same, you don’t always have to. Instead, you can partner with a local moving company to help your tenants move their assets to and from your property. This minimizes the risk of damage while offering efficient relocation solutions.
Additionally, when renovating your commercial property, you need efficient and reliable services to transport furniture, equipment, and inventory safely. And I don’t think a tenant is supposed to pay for the costs. They expect you to care for everything while keeping their assets and office supplies safe.
The costs of moving services vary depending on the distance, volume, and complexity of the move. You can provide discounts if you have your moving company or the resources to help tenants move. If not, have a professional moving company that you trust to help your tenants move.
Health and Safety
There’s no way a tenant will lease a property with mold growth because it’s a health and safety risk. Exposure to many mold spores can cause allergic symptoms, including runny nose, watery eyes, itching, and difficulty breathing. Therefore, you should always ensure that your commercial property is free from mold growth. Remember, your tenant has customers who wouldn’t come to an environment that exposes them to health risks. Also, mold growth can affect indoor air quality.
First, you should conduct regular inspections to identify and assess the presence of mold on your property. A mold inspection business can help you with this service. If your mold inspection business uncovers mold growth, you must address the issue promptly to prevent health risks. Regular mold inspections can also help prevent other moisture-related issues. This is because the inspection uncovers the causes of mold growth, such as excessive humidity and leaks. As a result, you’ll take preventive measures to mitigate the conditions that promote mold growth.
What’s more, regular mold inspections demonstrate your commitment to maintaining a safe and healthy environment for your tenants. This will lead to tenant satisfaction and retention. Your tenants will likely renew their leases or refer your property to others if they feel your property prioritizes their well-being. The costs for mold inspection vary based on your property size and the extent of the inspection needed.
Professional Construction Services
Do commercial property owners hire ordinary people to complete their construction projects? I doubt that. If it’s your residential property, you can hire anyone or even DIY your construction projects. But for commercial properties, you must hire a professional and experienced commercial concrete business to complete your construction projects. You don’t want to compromise on quality.
Remember, regular maintenance of your property is essential. It improves your property’s value and tenant retention. However, you need an expert to do the repairs and maintenance. Commercial concrete services offer expertise in constructing, repairing, and maintaining concrete structures. This includes parking lots, sidewalks, and foundations.
Utilize Commercial Electrician Services
All your tenants use electricity or any other energy source to run their businesses. This includes lighting, powering machines, and equipment, among other uses. Sometimes electrical issues could arise. For instance, your bulbs aren’t lighting, or some electrical components are faulty. In this case, you’ll need to identify and address the issue promptly.
Since electricity is risky, you should only hire a qualified electrician business to handle all electricity repairs and inspections. Additionally, you should address electrical issues before an emergency occurs. Make a habit of inspecting and addressing potential issues to prevent costly repairs.
Additionally, you should ensure energy efficiency. It’s commercial property management 101 for any commercial property owner. How do you do that? For instance, you should recommend and install energy-efficient solutions such as occupancy sensors, LED lighting, efficient heating and air conditioning systems, and power management systems. This helps optimize energy use, reducing utility costs and contributing to environmental sustainability.
Keep Your Property Clean
Most commercial clients take the responsibility of cleaning their units. However, as a property owner, you still have a role to play in keeping your commercial property clean. And you don’t have to do it daily. Having a professional clean your commercial property at least once weekly can help you keep everything in excellent condition.
For instance, if you have a carpet floor, you can hire a carpet cleaning business to clean it at least every 3-6 months. This is because your tenant will only be vacuuming and removing dust. However, you still need to clean your carpet thoroughly. This will also depend on the traffic from your tenants and their customers.
Also, you must keep your landscape clean to create an attractive environment. If you’re thinking of renovating your commercial spaces, hire a land clearing business to prepare the land for landscaping or construction. Land clearing services involve removing trees, vegetation, and debris from an area to prepare it for construction.
Regular Plumbing Repair and Maintenance
Your commercial property undoubtedly has a plumbing system that supplies water to your tenants. And water being a basic need, you must ensure that your plumbing system is always in good shape. That is your work as a commercial property owner, and it’s commercial property management 101.
Sometimes plumbing issues arise unexpectedly and can cause massive disruptions and damage to your property. Therefore, you need affordable plumbing cleaning services to keep your plumbing in good shape. Your plumbing company should provide emergency services to address any emergency plumbing issues such as major leaks, burst pipes, and sewer backups. This helps mitigate damage and minimizes downtime.
Additionally, you need to regularly upgrade your plumbing fixtures to meet changing needs, improve functionality and enhance aesthetics. Upgrades such as new water heaters and sinks can modernize your property and improve user experience.
Proper Maintenance of Your Glass Features
Most commercial properties have glass features, including glass windows and doors. They are ideal for display purposes as well as for letting natural air inside the building. However, these glass features must be properly maintained to keep their functionality and aesthetic appeal. While cleaning a glass door is easier, some glass windows require professional cleaning services. Therefore you may need a commercial glass company to help you clean and maintain the glass features on your property.
Commercial glass companies offer installation, repair, and maintenance services for doors, windows, and other glass features. They’ll recommend installing the right glass on your commercial property to enhance its aesthetic appeal, functionality, and energy efficiency. The costs of commercial glass services vary depending on the size, type, and complexity of the glass installations and maintenance.
Office Security Measures for Your Commercial Property
Part of commercial property management 101 is keeping your property and tenants safe. There are various ways to keep your property safe. They include;
Access Control Systems
You must restrict unauthorized entry into your commercial property. This includes installing biometric scanners or key cards to enhance security. This way, only authorized individuals will access the premises. This keeps your commercial property safe, both for you and the tenants.
Any business is vulnerable to risks such as theft and vandalism. Therefore, as a commercial property owner, you should take adequate measures to minimize such risks. This includes installing surveillance systems. The cost varies depending on your property size and the type and number of surveillance systems needed.
An alarm system can deter theft by alerting you or your tenants of potential threats. This helps protect your commercial property and assets. The cost of installing an alarm system on your commercial property depends on your property size and the system’s complexity.
What Licenses and Permits Do You Need for Your Commercial Property?
Managing your commercial property is like running a business. Therefore, you must meet certain legal requirements as part of commercial property management 101. Here are essential licenses to secure for commercial property management;
- Zoning and land use permits
: To ensure compliance with zoning regulations
- Building permits
: During commercial construction or renovation projects, building permits should be taken to ensure compliance with building codes and regulations
- Occupancy permits: To certify that your property complies with health, safety, and building code requirements
If you’re thinking of investing in commercial properties, you must understand commercial property management. Our commercial property management 101 has explained everything required to properly manage your commercial property. Contact us if you still have questions about commercial property management.