Posted on

An Action Plan for Finding New Property Managements

city buildings at sunrise

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.

box front on leasing program
Commercial Leasing Program

 

Locating Good Properties to Manage

Where can you find new property management business?  Try these for starters:

  1. 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.
  2. 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?
  3. 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.
  4. 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.
  5. 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.

Posted on

How to Find New Commercial Property Management Clients

In commercial and retail property management, you should have a process and a system to help you attract new property management clients. Over time the income from the management portfolio will support the agency and provide stability when sales and leasing activity is low.    Here are some tips from our Newsletter.

There are a number of different ways to attract these clients to your business, with some processes being more successful than others. Here are some ideas to help:

  • The best way to attract new business of this nature will be through and at the time of the completion of a successful sale or lease transaction. The property owners are primed for the discussion. It will be a matter of showing them why a professional management service will be of value to them. Perhaps you could save them time, money, or remove the frustration from the tasks involved.
  • Some clients manage their own properties, and on that basis they will be targets for new business. That being said, they will typically not have the necessary systems to do the job properly. The larger the property, the more difficult it will be when it comes to tracking income, managing expenditure, and invoicing tenants. You can add to those requirements the other issues of lease management, risk controls, and tenant mix optimisation. All of these things require skill and knowledge. You can market your brokerage around the specialized services in each case.
  • Review the properties currently being managed by your competitors. It should be fairly easy to understand and identify those properties that are being poorly managed. In most cases you will see evidence of that underperformance when you inspect the property and talk to the tenants. The skills of the manager will reflect in the quality of the management. Get in contact with the owners of those distressed or difficult properties, and offer a no obligation proposal to take over the property.
  • Understand the leases that apply to the tenants within a property. You may find that the management fees are a recoverable item within the outgoings categories of the leases. This then says that the fees that you charge to manage will not be a financial burden to the property owner. They will simply be a recoverable item in the outgoing structure and invoicing process. Providing the property has a suitable level of outgoings when compared to other local properties, your fee recovery should be quite simple and achievable.
  • The larger the property, the more complex the management process. That being said, you can provide specialised services when it comes to the tenancy mix, vacancy management, and outgoings control. All of these factors will give you leverage when it comes to winning the property management appointment.

So the message is quite clear. There will be some new business to win when it comes to managing quality properties and quality clients. The best strategy to achieve that is to identify the right time in the property cycle, and the right services to offer your clients.

Get more tips like this in our Newsletter.