One key element that often separates successful property investors from those who struggle is the presence of a competent asset manager. Asset managers play a pivotal role in ensuring the long-term profitability and success of your commercial property investments. In this blog post, we will explore why it’s important to have an asset manager for your commercial property investment and the various critical tasks they perform.
Ensuring Rent Gets Paid
One of the primary functions of an asset manager is to ensure the consistent collection of rent. Timely rent payments are crucial for your investment’s cash flow and profitability. Asset managers are skilled at setting rental rates, screening tenants, and enforcing lease agreements, making sure that rent payments are made promptly and consistently.
Implementing Annual Increases
Market conditions change, and so should your rental rates. Asset managers keep an eye on market trends and ensure that your property’s rent is competitive and in line with current market conditions. Implementing annual rent increases not only helps you maximise your rental income but also protects your investment’s long-term value.
Property Maintenance and Repairs
A well-maintained property attracts quality tenants and retains them for the long term. Asset managers oversee property maintenance, ensuring that repairs and maintenance tasks are addressed promptly. This proactive approach not only enhances tenant satisfaction but also extends the lifespan of your property, saving you money on major repairs down the line.
Managing Tenant Turnover
Tenant turnover can be costly and disruptive. Asset managers manage the process of incoming and outgoing tenants, handling everything from advertising vacant units to screening potential tenants. They work to minimise vacancies and maximise occupancy rates, ensuring a consistent income stream for your investment.
Creating Make-Good Plans
When tenants move out, they may leave the property in less-than-ideal condition. Asset managers create and implement “make-good” plans, which specify the condition the property must be returned to by the departing tenant. This ensures that your property remains in excellent shape and ready for the next tenant, preserving its value.
An asset manager plays a crucial role in overseeing and managing a landlord’s outgoings. The asset manager works to strike a balance between maintaining property value and minimising costs, ensuring that the landlord achieves the best possible return on investment. Through careful budgeting, financial analysis, and strategic decision-making, commercial asset managers contribute significantly to the overall profitability and success of a landlord’s real estate portfolio and management of the landlord and tenant relationship. In most cases most leases will include the provision to include the real estate agency management fees as a recoverable outgoing. Contact Parkside Commercial if you are interested to discuss further.
Having an asset manager for your commercial property investment is not merely a luxury but a strategic necessity. Their multifaceted role encompasses various crucial tasks, from rent collection to property maintenance, tenant management, and more. By entrusting your investment to a skilled asset manager, you can enjoy peace of mind, knowing that your property is being professionally managed and that you are maximising your return on investment. In the dynamic and competitive world of commercial property investment, the role of an asset manager is indispensable for long-term success.
Need a new management solution? Get in touch with Parkside Commercial today!