Maintaining focus as a property management company for commercial real estate (CRE) comes with challenges, but it doesn’t always have to be a hassle. Staying organized and on top of your tasks will help you avoid mistakes that could jeopardize your success.
Owning commercial real estate takes a lot of time, energy, and specific knowledge. You have to deal with a lot of paperwork and legal issues, stay in touch with tenants, and keep up with repairs, bills, and marketing. Even if you know what they are, it’s hard to do all of these CRE management tasks at once.
Hiring a property manager who knows how to run your commercial real estate business well can help relieve some of this stress and give you the time and attention you need to focus on what you need.
At STRATAFOLIO, we’ve spoken with countless property managers and landlords about their failures and successes in commercial real estate. Here are some tried-and-true tips for boosting performance in property management.
4 Tips for CRE Property Management Companies
In commercial real estate (CRE), property management is a delicate balancing act that can make or break how well a building does. To run a commercial real estate property well, the property manager needs to be good at maintaining the building, dealing with tenants, keeping an eye on finances, following rules, and understanding how all of these things often affect each other. In CRE, prioritizing tasks carefully is one of the most effective ways to improve your business.
1. Utilize Rent Roll Documents
A rent roll document shows the income generated by a property. While these reports are often used by investors to monitor property performance, rent roll is also very helpful to property managers. It will help you identify tenants who are consistently paying or not paying their rent on time. It’ll also help you budget correctly to efficiently manage expenses and income.
For example, you can easily learn how to run a rent roll in STRATAFOLIO. Otherwise, if you don’t utilize a software product, you should maintain a spreadsheet containing the information we provide on our static rent roll to keep you focused on the most important items that come with the property management job.
2. Invest in Commercial Property Management Software
Paper documents are a thing of the past when managing properties. Relying too heavily on paper filing systems could end up costing your commercial property management company more time and money in the long run. Mistakes are more likely when you manage your properties in this outdated way. Using property management software like STRATAFOLIO streamlines your property management workflow. Going paperless will ease the stress of keeping track of tenant payments, especially if you manage multiple properties, and make it easy to see all your financial information in one place.
3. Create a Relationship Between Your CRE Property Management Company & Tenants
This may be one of the easiest ways that you can grow your commercial property management company. Creating open and healthy relationships with your tenants will make the experience for both parties positive. This will both attract new tenants and help you retain current tenants. If you have an excellent tenant and you want them to renew their lease, maintaining a positive relationship can help encourage them to stay.
While it is important to treat tenants with kindness, you must also be assertive. Some tenants may try to abuse the system because you are too considerate. Well-rounded property managers are fair and know where to draw the line.
Best practice is to have a system in place for tenants to be able to contact you when there is something wrong. When tenants can reach you easily about arising issues, this will save money and time on your end. Timely communication is key to getting issues resolved quickly. When your tenants can confidently approach you about any problems they have, you’re less likely to have expensive repair costs from deferred maintenance. Your tenants will be happier and more satisfied with their commercial space.
4. Visit Your Properties in Person
When you run a CRE property management company, it may seem easier to let others handle on-site issues from day to day. However, it is still necessary to visit your properties yourself. Visiting your properties will allow you to fully understand what is happening, good and bad. Make it a priority to have surprise visits to see how your employees and tenants are doing. This will further build your relationship with them and help you know what is going on at your properties.
Improve CRE Property Management with STRATAFOLIO
Operations management isn’t just about keeping things the same; it’s also about making a system that works well and keeps renters happy, lowers long-term costs, and sets up your property for growth.
There are several ways that you can become a better property manager instead of being complacent with your properties. Being up to date on the latest protocols and trends will keep you competitive with other rental property managers. STRATAFOLIO is here to help you stay on top of your properties without the hassle or stress. Schedule a 1:1 demo with us today.
