The Benefits of Property Management Companies in Auckland

Providing beautiful, functional spaces for your tenants is just the beginning

When investing in stocks, bonds, or managed funds, stakeholders consider carefully the ongoing management of those investments. Your Commercial Property assets are no different and the quality of management will be reflected in your returns.

What Options do I have for Management of my Commercial Properties?

Historically there have only been two options for management of your commercial property portfolio;

1. Self Management; where the Landlord manages the portfolio themselves.

2. Management Contracts; entering into a Property Management Contract whereby a Commercial Property Management Company takes care of all of the management requirements for your portfolio.

There is a new third option that has been offered by Property Management Consultants in Auckland, which allows for Landlords to manage their own portfolio with the support of a professional property manager. Check out my earlier blog for more information on the advantages of working with a Commercial Property Professional.

CP Pro Tip: For the best results from your commercial property portfolio, we recommend that the Landlord have some involvement. Many Commercial Property Managers discourage involvement from the Landlord.

Confidence in your Commercial Property Manager will make investing easy

Benefits of Professional Commercial Property Management

Landlords invest a lot of time and money into the decision to purchase or develop commercial property. Even more attention is given to planning and executing careful marketing and leasing, then negotiating and agreeing robust leases. The result is a valuable asset that should provide both growth in value and returns to the investor. The benefits of professional property management will be reflected in the performance of the assets. If you are considering engaging a professional to manage your portfolio, here are some of the benefits;

1. Compliance

   Building and Health and Safety Compliance gets more and more complex every year. Your commercial properties may also require environmental compliance in the future. Understanding and complying with changing laws and requirements can be difficult, but if you engage a commercial property manager, they should have the knowledge and expertise to not only ensure your buildings are compliant now but also in the future by keeping abreast of changing laws. The investor also protects themselves from some liability by engaging a third party to arrange compliance.

2. Knowledge

   Commercial Property Managers understand leases, maintenance requirements, and operational issues to do with commercial properties. They can call on trusted contractors and experts if there is an issue.

3. Support your Tenants

   Professional Property Managers should be available and responsive to your valuable tenants so you don’t need to be. They should be able to build strong relationships and understand their businesses requirements. Happy tenants pay their rent on time and renew their leases.

4. Negotiate on your behalf

   I have a client that has a great relationship with all of his tenants. As a landlord he goes above and beyond in assisting them and as a result they keep renewing and extending their leases, some relationships have lasted more than 20 years. The only time I ever heard of any issues between him and his tenants was during rent review time. Tenants can become quite offended when a rent review is carried out, and one in particular reacted badly to a standard rent review notification. Commercial Property Managers can negotiate rent reviews or renewals on your behalf and take the stress out of your interactions with your tenants.

5. Systems and Technology

   Property Management companies can provide some or all of the following technology and systems.

   • Property management systems for managing lease information

   • Reporting capabilities, both on property performance and financial reporting directly to your accountant.

   • Health and safety documentation and systems including contractor management.

   • Access to your property information in real time via an app.

6. Preferred Contractors

   Regularly engaging contractors ensures that good relationships are forged with professional maintenance and compliance companies. Having quick reliable contact with tradespeople, especially in emergency situations, can be extremally beneficial. Landlords also get the benefit of special rates that Property Management companies can negotiate with suppliers.

7. The Tenant generally pays the Management Fee

   The outgoings clause of the Auckland District Law Society (ADLS) lease form, (Clause 3), is generally found in the first few pages of your lease. This specifies what outgoings the tenant is required to pay. One of the items is “Management Expenses”. If this clause is in your lease, then any costs incurred for managing your commercial property can be charged to the tenant. Often this clause is amended so that if the Landlord self manages, they cannot charge management fees to the tenant.

Relax and let someone else take care of your commercial assets.

When it comes down to it, the advantage to hiring a commercial property manager is that they take the workload, responsibility and commitment of managing your assets off your plate, so you can sit back, relax and watch your investments grow.

CPP offers a fresh new way to manage your commercial property portfolio. If you would like to know more, email me or check out my property management contracts. My initial consultation is always free. I look forward to hearing from you!

Regards,

Kirstin