In this day and age, the tasks of a commercial property manager are varied which requires managers to be flexible and have a broad skill-set.
Property management primarily involves overseeing day-to-day operations of commercial properties (i.e: cleaning and maintenance), facilitating contract negotiations, communicating with owners about occupancy levels, preparing financial statements, and collecting rent.
Below are some additional duties, some of which have been newly incorporated into the role of a commercial property manager.
Financial Duties of Commercial Property Manager
Now, commercial property managers are required to take on even more roles and responsibilities than ever before. Many of these acquired duties pertain to financial transactions (i.e: preparing financial statements and processing payrolls, pay insurance, mortgage and/or tax bills).
Property managers often guide owners through these transactions. This includes providing owners with asset documentation, tracking lease structure (to ensure they create maximum value for the landlord), and keeping owners aware and informed of issues that arise during site inspections.
Commercial property managers also now act as asset managers, with a focus on helping increase Net Operating Incomes. Therefore, they are constantly aiming to please and keep old tenants while also attracting new ones.
Another example where a commercial property manager may need to take on an additional role is in the scenario where lenders (aka financial institutions, loans) are thousands of miles away. In this case, property managers must be able to offer capabilities ranging from capital markets research to valuation to leasing to construction management!
Two or three years ago, commercial property managers were mostly having conversations about re-negotiating existing rents. On a positive note, current conditions have improved enough that occupancies hold at 100 percent (on the flipside, this can also make it difficult for individuals looking to buy or rent property).
This positive can also be viewed as a negative. Because commercial tenants have a healthy choice of buildings to relocate to, property managers must give them reasons to stay at their current address.
Managers try to resolve this, in part, by driving down operating costs for both tenants and landlords. When you reduce operating costs for the tenant, they are far more likely to stay at the property. Relocation for commercial offices is something both parties would want to avoid. Showing your tenants that you provide value on their bottom line is crucial to forming a long-term relationship.
Due to modern technology, owners have round-the-clock access to their respective property managers (via phone, texting, e-mail). As a result, a commercial property manager is typically in constant communication with his or her tenants and rarely is there ever a true “day-off”.
For example, a commercial property owner could have an issue on a Sunday afternoon that the property manager may be contacted about via text, and this issue may be urgent and require immediate attention.
In terms of keeping property owners happy, nothing beats having an experienced and attentive management team on site.