In commercial and retail real estate, there are different ways to find new property management listings and clients. Some strategies are more successful than others. Either way, the growth of a portfolio under management is a good part of commercial real estate brokerage today.
A thriving and successful brokerage and agency business will have an established process to finding new management appointments. That process will or should be ongoing.
So why do this? The object here is to build growth in a property portfolio under management. That portfolio will bring fee stability to a brokerage and potentially future sales and leasing stock over time. Every person in the sales and leasing team should be encouraged to raise the ‘property management question’ in all interactions with good clients and established contacts.
Locating Good Properties to Manage
Where can you find new property management business? Try these for starters:
- Sales activity – as properties are sold, some purchasers are investors in some way or form. They don’t have the time or the skills to control the leases and cash flow from investment activity. The greater the number of tenants in a property, the harder the work involved. They will likely need property management help. Recognise the complexities of property management with arrears, lease management, vacancy reduction, and property optimization. Sell your management services through to buyers of your listed properties.
- Leasing activity – every lease converted will allow you to ask the question of landlords as to how and who manages their property now. Are they happy with their existing property controls and services? Are there things that you could do that are better?
- Referral business – knowing that you should have a good list of clients or properties on your books now, the referral question is a strategic advantage. When should you put the referral question to, and who should ask it? Sometimes the sales and leasing team must be reminded or shown how to introduce the idea of property management services into a meeting and or a discussion.
- Large investment groups and companies – many larger corporations have property portfolios and need help with facility management, property management, reporting, and risk reduction. Generally, those companies are not property specialists, and they do not want to employ teams of people internally to solve day to day property problems. Can you offer a cost-effective and professional way of managing properties to those larger groups and businesses? Build a ‘corporate property management package’ to be specifically promoted in your region and those identified key corporate groups.
- Family businesses – some successful family businesses put money back into the property or their portfolio. Research all the local property owners to find those families and understand what they own. How could you help them with rent collection, vacancy reductions, and property optimisation?
There is a good foundation of new property management business to be extracted from this list of initiatives. Build a system of business development around it and shape it to your location and preferred property types.