In commercial real estate agency, it is common to be
preparing a property management proposal to submit to the property owner
following a sale or a lease. This is the most opportune time to seek a new
management appointment.
The structure of a commercial property management proposal
will be designed for the property, the landlord, and the general precinct
location. Importantly the proposal should tap into the strategies and ideas
that help the property owner to achieve better property performance through
sensible strategies of lease performance, income, and expenditure control.
Here are some key ideas to help structure your proposal for
the management of the property. You can add your specific agency
recommendations around the model.
An executive summary should always be placed at the front of
the document. This allows the client to quickly grasp of the main strategies
and outcomes that you can see as part of the management strategy.
Summarise the property physically together with locational
elements that impact tenancy mix or occupancy. This provides clarity as to how
you see the property and how it can be managed.
The lease and tenant mix management processes should be
detailed within a section of the proposal. Care must also be taken in reviewing
the tenancy schedule first to ensure that the leases are totally understood and
accurately reflected in your recommendations. You should also be looking for
occupancy matters that need to be immediately addressed after management handover;
such as rent reviews, options, lease expiries, make good processes, and
arrears.
The daily maintenance and function of the property will
require a specific management processes. The tenants, customers, and landlord
each have a different relationship to the performance of the property
physically; they all have needs in the management of the property. It is wise
to review the special maintenance demands of the property and to make specific
recommendations regards maintenance controls, plant and machinery management,
and risk management that applies to property function. As part of this it may
be necessary to talk to the contractors that supply specialised maintenance
services to the plant and equipment.
The property manager reporting processes to the landlord
will be part of the property management service. Detail the relevant reporting
systems that you can adopt and implement. The landlord may have other
particular special reporting requirements to incorporate into the program.
The financial reports to be provided to the landlord can be
split into examples at the back of the document; this allows the landlord to
see the comprehensive nature of your reports and controls. Normally the reports
will include income analysis, expenditure analysis, budget status report,
arrears report, tenancy mix strategy, tenancy schedule, and lease management
report.
The management of maintenance contractors associated with
the essential services and major plant and equipment should be itemised. The
major plant and equipment provides functionality to the property and tenant
occupancy comfort. Any concerns that you may have here should be identified in
the proposal.
If the subject property is complex and contains a number of
tenancies, it is likely that a business plan including a tenant mix strategy
should be compiled. This helps the landlord to see just how you will implement
controls across the tenant mix.
Summarise the relevant personnel to be applied to the
management of the property. In a large office or retail property the list is
lengthy; it can include property manager, lease manager, engineer or
maintenance manager, tenant services manager, and onsite management staff.
The fees to be charged to manage the property should be
itemised. In some cases they will be split into base management fee, on site
management office costs, and the on-site management staff.
Within each of these main categories of your proposal, you
will have recommendations and ideas regard particular things that should be
immediately implemented in the property.
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