While engaging with tenants is an important part of your commercial property management strategy, you can only succeed if your commercial property operations are also up to par.
Competition is fierce for you AND your tenants. A comprehensive commercial property operations strategy involves controlling the variables you can while preparing properly for what you can’t control. Your relationship with your tenants will only flourish if you manage and control your properties well.
Manage your properties
A good property manager first asks the question: What do I have? Step back and take a look at all the things you have in your portfolio. Take stock of your assets and make sure you understand your total portfolio. In some cases, it may even make sense to do an audit so that you can make sure that your physical assets and records of said assets line up. Audits can often provide you with the fullest picture possible of how all your properties are operating.
Track your real estate assets
In addition, it’s vital to your commercial operations that you track these assets consistently. That way, you can be sure that your business is in compliance with rules and regulations. You can manage your assets through Fixed Asset Accounting software, and should an emergency ever arise, this can help you present accurate records to an insurance company.
Speaking of insurance, you’ll also want to track the certificates of insurance you have on file from vendors and make sure they’re up to date. This will avoid interrupting any duties you need them to perform.
Manage your real estate property financials
Monitoring the variables that are clearly within your control will also be essential to efficient commercial property operations. The first step to taking proper control is understanding the financial position of your business at each of its levels. This will help you use the variables to manage how you do business. To do this, you should have information regarding payables, receivables, profitability and resources at your fingertips.
Take control of your real estate budgeting and forecasting
You’ll also want to take control of the data at your disposal. Who in your business is responsible for entering information into your data systems? Who can see it? Is it secure? You can also use budget forecasting to understand your future performance. Build budgets to control expenses as revenue tracks to forecast.
Develop a property management strategy
Finally, it’s important to set your priorities. As you look at your portfolio, you’re going to make decisions based on the profitability of certain entities, lease requirements and tenancy requirements. Setting priorities can help you determine how to allocate resources and people. When you have a big picture that encompasses each asset and aspect of your property management portfolio, you have a better idea of how you should be allocating resources in order to operate as efficiently as possible.