Tips for Successful Commercial Property Management
Managing a commercial property can be quite a bit different from managing a residential property. The considerations for your tenants are unique even if some of the processes are similar. So what does commercial property management in Nashville, TN actually entail? We look into the major factors for a commercial property manager to keep in mind, and tips to stay on top of them.
Study the Market
Rental prices are a major consideration when it comes to managing a property. There’s a delicate balance between having your prices low enough to attract tenants, and high enough to give you an adequate return on investment. There are many things to take into account when putting together your prices—property taxes, maintenance schedule, income goals, and so on. However, the best tool you can use to get a range of potential rental prices is the current local market. Look up what comparable properties are charging for rent. You want to be competitive in the market, but you also don’t want to sell yourself short by charging far less than potential tenants are willing to pay.
Learn the Legalities
Staying on top of the legalities of your property and your area will put you in the best possible position. You don’t need to be a lawyer to work through this, but it helps. You can always enlist the help of a lawyer to help you navigate local codes, rules, as well as for putting together a specialized lease for your tenants. You can find lease templates online, but these aren’t going to cover everything you need them to cover. The terms and conditions of the lease need to reflect your needs. After all, you’re the one who is responsible for the building. Untrustworthy tenants can occasionally sneak through even the tightest of interview processes. Including the proper verbiage and wording within a lease can save major headaches down the road.
Southeast Venture has been offering commercial property management services in Nashville, TN for years. Visit us today to see how we can help you.
Keep Up With Maintenance
Staying up to date with repairs and preventative maintenance is important. This benefits you in a few ways.
- It keeps your property up to code
- It ensures your tenants don’t have problems in their spaces
- It lowers the risk of having major, potentially expensive problems down the road
The unfortunate fact of keeping up with maintenance is that it is going to cost money. Factor this into your financial plans for the year. Leave yourself with a sizeable maintenance budget so that when these issues arise, you can take care of them in a timely manner. However, even though this might seem expensive on the front-end, it can wind up saving you money. Unaddressed issues tend to compound. Also, a well-maintained building will be more efficient and can save money on utilities.
Focus on Long-term Occupancy
Empty units are only costing you money. Every month one of your spaces doesn’t have a tenant is a drain on your annual bottom-line. However, vacancies are going to happen. Nobody stays forever. You can work to minimize the impact of this by staggering the leases of tenants in a multi-unit complex. But if you have only a single occupant, you should focus on maintaining that tenant as much as possible. There are many things you can do to help keep your tenant happy. The most basic is to simply be attentive to their needs. If they put in a maintenance request, fulfill it quickly. Take their likelihood of staying into account when putting together their lease. A lower rate can be negotiated for a longer commitment, for example.
Consider the Mix
Multi-unit complexes necessitate an extra layer of consideration: How are the tenants going to play off each other? Consider how one business might affect their neighbors. For instance, putting a bar next to a children’s clothing store might not work the best. But a bar next to a restaurant could bring in customers for both businesses, leading to a longer-term lease from both accounts. It’s a good idea to try to put like-minded businesses together. They will grow together and help each other succeed. And when your commercial tenants succeed, you succeed. You want your building to be a destination for customers so your clients’ businesses flourish for years to come.
Get Professional Help
Do you still feel unprepared for commercial property management in Nashville, TN? Southeast Venture offers commercial property management services that can give your building the best chance at success. They can help build tenant relationships, help prepare annual budgets, advise lease documentation, and much more.
Contact Southeast Venture to see how they can help with commercial property management in Nashville, TN.