How Choosing The Right Property Management Firm Can Maximize Your Asset Value
Commercial real estate can be an exciting endeavor – especially in Orange County, California. High-rise buildings with tenant amenities and stunning views are a norm in the area – but even more sparkling than the assets themselves are the return on investment potentials. It is easy to be caught up in the excitement of a new asset and the returns that it will generate. When it comes to increasing the asset returns and making sure that a gem of an asset does not become a disaster, it is important to examine the less-than-sexy part of the asset, and that is the property management. Property Management can help or hurt the value and performance of your property depending on which company you choose when deciding who will manage your property. A great property management company can increase the revenue of your property while reducing the operating costs, which in the end maximizes the overall value of your investment.
There are a few different ways that a property management firm can maximize values, but part of that is dependent on the services they provide. All property management companies should provide regular inspections and accounting, but some firms are adapting to changing technologies and are on the forefront of the industry by incorporating technology based online portals for accounting and reporting to the owner, allowing an owner to get real time statistics on how their property is operating. Beyond an online portal, a property management firm can incorporate social media marketing tactics and utilize thought leadership platforms to help elevate your property. In addition, some property management firms provide services tailored specifically for a certain property type, such as retail, office, industrial, or multifamily. As Certified Commercial Investment Member (CCIM) Institute points out, it is ideal when choosing a property manager to find a company that specializes in the product type that you own. Having a company on your team that understands your property can pay dividends when it comes to achieving long-term performance goals.
A Great Culture At Your Fingertips
Beyond the specialty and adapting to the needs of owners, innovative property management firms are adapting to Tenant’s demands as well, after all every landlord is in the customer service business. With the rise of WeWork, Regus, Coworking models, and the idea that company culture helps attract and retain employees, more companies are looking at how their work place feels and the customer service provided by their Landlord. A property management firm can be the ideal intermediary and extension of the landlord in providing this customer service to Tenants. Tenant events, hosted breakfasts and lunches, discounts to events, concierge like benefits, and club memberships are expected to be provided by Landlords in some markets.
Meeting Your Needs AND Your Wants
While zooming in on customer service is important, it is also vital to know what competing buildings are offering their tenants. A leading property management firm keeps their pulse on the market and can provide suggestions on amenities and services to provide tenants that will not only compete with other properties within the market, but also meet the landlord’s objectives of maximizing rental rates. A manager that is going beyond even just a little bit can help make major differences when it comes to rental rate metrics. In addition to providing feedback on services provided by other buildings, a property manager can help by recommending capital improvements, amenities, or alterations to your physical property that will ultimately increase the desirability of the building based on competition or tenant demands. This could include a common area conferencing center, so that tenants have a place to hold small or quick meetings outside of their own suite, or a stocked tenant café for more casual gatherings and coffee breaks in addition to more traditional amenities such as common area gyms, outdoor lounges, and covered parking.
Ultimately, the single biggest differentiating factor comes down to having a balance between what the building has to offer and what ownership expectations are. Customer service is paramount, but in an outdated and tired building even the best ambassadors can’t push rents. So, having a well-rounded team that is not just there to collect rent or deal with day to day problems, but to balance tenant relations with continued improvement and care for the property can make a big impact on the property’s occupancy in the long run.
The Kelemen Company with its decades of experience provides all the above-mentioned services with a focus on exceptional customer service for both tenants and owners alike. Reach out to us for a consultation on how we can help provide value to your portfolio.