According to Construction Physics, there are over 5.5 million commercial buildings in the U.S. Between 2020 and 2024, a would-be property owner had plenty of places to choose from to invest in real estate.
However, commercial building management is more complicated than buying a property and thinking things will be fine. You need real estate management skills to be in charge of any property.
So, what facility management techniques do you need when operating a commercial rental property? Read on to learn valuable property management tips to maximize your commercial property efficiency.
Choose the Right Tenants
Never choose tenants at random or out of desperation, regardless of the type of property you own. Choosing tenants is a balance of gaining a steady income and minimizing risk.
You don't want people who can't pay or may damage the property, or worse yet, harm you or others. Take tenant screening seriously and negotiate terms that work for both parties.
Understanding the Legalities
Information is part of many building management strategies. For example, you should know the state and federal laws regarding commercial building management.
Brush up on local zoning laws and building codes. Learn tenant rights and what the Americans with Disabilities Act (ADA) says you can and cannot do. Adopt strategies to mitigate risks and disputes with tenants.
Learn How to Craft Lease Agreements
Many skills go into creating lease agreements. You've got to have conversational and negotiation skills so you walk away with favorable terms while accommodating your potential tenants. You must also know how to:
- Address and explain rent escalations
- Address tenant improvements
- Renew leases
- Maintain tenant relations
All these facets must be included and explained clearly and concisely in the lease.
Keeping Your Property in Working Order
Maintaining your building is one of the most useful real estate management skills because it preserves the structure and keeps tenants happy. You'll want to learn how to do inspections and the resultant repairs.
Regular upkeep, emergency repairs, and preventative maintenance are vital to your building's upkeep.
Managing Your Finances
Arguably, the most important part of commercial property efficiency is good financial management. Good accounting will help you budget and plan for your business's future.
You should set up an efficient rent collection system, track expenses, and optimize operating costs. You'll learn the strengths and weaknesses of your business once you learn where your money is going.
Learn Effective Building Management Strategies
Commercial building management is a task requiring various facility management techniques and skills. You must know how to converse and negotiate with would-be tenants.
Good financial management is also necessary. We know this can be challenging; fortunately, PMI Expert PB is willing to lend a hand.
PMI Expert PB specializes in commercial real estate. We help clients with marketing, tenant management, property management, and accounting aid. Our services are offered by a team with over 20 years of experience.
Do you find it hard to keep up with all your management responsibilities? Contact us if you'd like expert help with your commercial property.
