YOU’RE EXCITED … having just purchased a Commercial property investment. But what happens from here on, effectively determines just how profitable your acquisition will be.
Therefore, choose wisely when selecting your property managers — to ensure they share the same aspirations as you do.
- Maintaining Full Occupancy
This is what every Commercial property investor wants; and it should also be the same for your property manager.
Clearly, the starting point is taking the time and effort to select solid tenants upfront — rather than simply “filling the space”. Plus, it’s important for you to retain a good ongoing relationship with those tenants … which leads on to the next benefit.
- Having an Investor MindsetAs investors, you need to think of your tenants as your partners. After all, they are the ones paying your mortgage.
Therefore, top property managers tend to act as though each property was their own. And this attitude flows through to your tradespeople as well — because when promptly paid, they will always respond quickly to any emergencies that may arise.
- TimelinessNaturally, this would include ensuring your tenants pay on time. And if not … having a firm-but-fair system in place, to get things back on track.
Once your rentals are in, those cleared funds need to be immediately transferred into your bank account — and you’re then alerted by email.
- Preserving ValueYou need to have an ongoing Preventative Maintenance program in place. And the reasons why are quite simple:
****These costs are then known and budgetable;
****Your tenants should cover these costs under their leases;
****If not, the items are tax-deductible, instead of a capital cost.
By being planned in advance, it means you are a able to select the best tradespeople at the best prices. Plus, your property is being inspected on a regular basis.
- Proactive AdviceTop property managers will come to you well in advance of any market rental reviews (or lease expiries) with appropriate recommendations. Likewise, just before your insurance falls due.
And also, immediately after the 4-yearly Council revaluations — to advise you on whether or not to challenge the new assessments.
- Statutory Compliance Unless you are involved with this every day, keeping on top of statutory changes can be a nightmare.
You need to be across them all. But probably the most vital is ensuring your property meets the various Essential Services requirements.
Every top property manager will already have a program for regular checking and rectification.
- Marketability With each acquisition, you should always be looking for ways to add value — through refurbishing, or subdividing into smaller components.
This, together with your preventative maintenance program … should ensure your property is in ready-to-sell condition, within 12 months of you purchasing it.
That way, you can move quickly — should the need arise.
Bottom Line: If you have read this far, you’re already serious about property investing. And so, I’d like to give you a helpful takeaway.
Whether you are about to make a new appointment, or are simply wanting to re-evaluate your existing Commercial property manager … here are the 17 Probing Questions you need to ask.
Just click on this link to find out what they are.