In commercial and retail property management, you will come across some landlords that are quite difficult to work with. Over time the relationship between the estate manager and the landlord can become quite stressful and impact the processes on the estate. Eventually, the landlord will become disgruntled and unsatisfied. In such case, they will soon move their portfolio to another rental property Management Services Greater Toronto Area. They could even repeat the process a few times!
Many real estate agencies can also regard the estate management service in the office as the 'poor cousin' to the sales and leasing division. While that concept may work in residential estate administration, the same does not apply in and with the commercial or retail estate. Managing commercial and retail estate is just far too specialized and complex to be a 'poor cousin' to anything. If you run a real estate agency and want to start a commercial estate management division, then here are the basic rules:
Negotiation skills will always feature as part of the job specification. Negotiations will be diverse across many different situations including contracts and negotiations, estate leasing, maintenance contractors, solicitors, tenants, landlords and accountants. The commercial estate manager needs to have professional skills and suitable training when it comes to these diverse negotiation requirements.
At the top of the scale, shopping center managers and the most highly paid in the industry; however they work hard for it. Marketing, managing, and leasing a shopping center is not easy processes. If a new or junior estate manager is employed in your agency, it is essential that they are given the support of an experienced and talented senior estate manager for quite some time. There are many things for the new junior manager to learn. This includes:
Lease documentation will vary greatly from estate to estate. This then says that the estate manager needs to understand the differences in leases, how to bring them about, and how to interpret them. Rental structures, rent reviews, maintenance, refurbishment requirements, tenant covenants and option terms are all unique situations that require specialist review with every lease in a managed portfolio. Critical dates will arise from every lease document as part of the management process.
A base management fee should be set for managing the estate on a day to day basis. That will include rent collection, managing income and expenditure, managing tenants and leases, and maintenance administration. You should also include an allocation of time for reporting to and communicating with all the tenants and the landlord, given the demands and operation of the estate.
Tenant communications should be well maintained throughout the year. When tenants are overlooked or ignored by the estate manager, relationships soon sour, hence this exposes the estate to an unstable rental and or vacancy factors. Keep in contact with all tenants on a regular basis. Record all communications in writing so that the necessary evidence is available if any lease situation becomes the subject of a dispute.
A fee for negotiating new leases and renewals of leases with sitting tenants should be set. It is common to negotiate leases with your sitting tenants. New leases with businesses seeking to occupy your vacant space in the estate will also attract its fee. This will be higher than the fees that you set with your sitting tenants, as more work is required.
Many real estate agencies can also regard the estate management service in the office as the 'poor cousin' to the sales and leasing division. While that concept may work in residential estate administration, the same does not apply in and with the commercial or retail estate. Managing commercial and retail estate is just far too specialized and complex to be a 'poor cousin' to anything. If you run a real estate agency and want to start a commercial estate management division, then here are the basic rules:
Negotiation skills will always feature as part of the job specification. Negotiations will be diverse across many different situations including contracts and negotiations, estate leasing, maintenance contractors, solicitors, tenants, landlords and accountants. The commercial estate manager needs to have professional skills and suitable training when it comes to these diverse negotiation requirements.
At the top of the scale, shopping center managers and the most highly paid in the industry; however they work hard for it. Marketing, managing, and leasing a shopping center is not easy processes. If a new or junior estate manager is employed in your agency, it is essential that they are given the support of an experienced and talented senior estate manager for quite some time. There are many things for the new junior manager to learn. This includes:
Lease documentation will vary greatly from estate to estate. This then says that the estate manager needs to understand the differences in leases, how to bring them about, and how to interpret them. Rental structures, rent reviews, maintenance, refurbishment requirements, tenant covenants and option terms are all unique situations that require specialist review with every lease in a managed portfolio. Critical dates will arise from every lease document as part of the management process.
A base management fee should be set for managing the estate on a day to day basis. That will include rent collection, managing income and expenditure, managing tenants and leases, and maintenance administration. You should also include an allocation of time for reporting to and communicating with all the tenants and the landlord, given the demands and operation of the estate.
Tenant communications should be well maintained throughout the year. When tenants are overlooked or ignored by the estate manager, relationships soon sour, hence this exposes the estate to an unstable rental and or vacancy factors. Keep in contact with all tenants on a regular basis. Record all communications in writing so that the necessary evidence is available if any lease situation becomes the subject of a dispute.
A fee for negotiating new leases and renewals of leases with sitting tenants should be set. It is common to negotiate leases with your sitting tenants. New leases with businesses seeking to occupy your vacant space in the estate will also attract its fee. This will be higher than the fees that you set with your sitting tenants, as more work is required.
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