Enticing customers allows property managers to retain business tenants.
Property managers are hired to oversee real estate properties that are typically income producing on behalf of the property owner. Managers may be an individual or company contracted to handle leasing, rent collection, scheduling repairs and maintenance to ensuring the property is in accordance with insurance requirements and local codes. Types of property include single-family residential, apartment buildings, shopping centers, malls, office buildings and industrial complexes.
Turn-Around
A new manager may be hired to maximize the potential of a poor performing property. Regardless of the type of property or prime locations, affects of previous bad management require immediate and strategic solutions. First analyze the current property condition, lease rates, contract terms and tenant situations. Evaluate the neighborhood and traffic patterns to determine if the property meets the area's current and future needs and tenant markets. Next, analyze competition to determine what makes particular properties more successful. Analyzing unsuccessful competitors can enlighten hidden problems within the subject property. Compare property features, rental rates and marketing techniques to determine what is working in a particular market. Use information gathered to create a strategic and written plan with reasonable deadlines for achieving goals.
Attracting Tenants
Marketing and leasing are primary objectives of effective property managers. Lucas Haldeman the Vice President of Sales at RentNet and Mary Gwyn of Apartment Dynamics, an apartment marketing firm, discuss the importance of an online presence. List all amenities and community benefits on the website, and the most sought after amenities in online advertising. Include easy-to-read floor plans, with pricing. When possible add market comparisons that favor the subject property. Virtual tours work 24/7. The more information provided on the website directly relates to reductions of a manager's wasted time with less-qualified and less-interested prospects, making it easier to initiate contracts at appointed showings.
Retaining Tenants
Tenant turnover is costly in both time and money, according to 1st Commercial Realty Group, a property management company. 1st Commercial notes that it engages in a Formal Tenant Retention Program that includes annual questionnaires to tenants. This is a good method to find minor problems before they cause major losses. Unless a tenant has out-grown the unit, most often the desire to relocate is due to minor nuisances that are within a manager's control. When leasing vacant space, target complementing businesses to attract customers. In a 2010 article for ShoppingCenterBusiness, Howard Paster suggests that managers of shopping centers collaborate with retailers to create a merchants association to use resources toward special events and promotional activities designed to attract shoppers.
Restructure Expenses
Increasing revenues and cutting expenses to improve cash flow is imperative, even in good economies. Conduct a simple feasibility study to determine the Return On Investment for upgrades of energy efficient or water-saving systems to take advantage of available tax credits. Joint venture with one or more vendors or complementing area businesses to share advertising expenses in the local paper, radio or television station. Evaluate current vendors and look for alternative services or negotiate revised contracts. That plumbing service with the low hourly rate is not a good deal when the truck isn't supplied with common parts. That five-dollar toilet ring easily becomes a $50 dollar expense when trip fees or hourly labor fees are applied.
Tags: determine what, shopping centers, subject property