SO… WHAT DO COMMERCIAL PROPERTY MANAGERS ACTUALLY DO?

The services of a property manager fall into two broad categories: Property Leasing, i.e. finding a tenant, and Property Management, i.e. everything else.

Let’s break down each side of the role and look into what property managers actually do.

What is Property Leasing?

As the name suggests, Property Leasing describes the task of finding and placing a tenant in a property. However, this is no small ask, especially when it comes to commercial properties. Let’s look at a few of the tasks involved in Property Leasing:

Rent Appraisals

The first step in leasing a property is to determine what it’s worth. We could write pages on rental appraisals alone, but for now, let’s just say that a rental appraisal is most commonly done using comparable leasing evidence. This step alone makes using a good property manager a worthwhile decision.

Property Marketing

To minimise vacancy rates for our clients, Nutshell uses all the latest digital marketing techniques. We list on all the major portals including RealCommercial, Commercial Real Estate, Commercial Property Guide and Gumtree.

Marketing will also include, email marketing, signboards, or print media. A Property Manager will organise all of this for you.

Professional Photography

Whether done in-house or outsourced, professional photography is an essential part of a property manages job. It’s more important than ever to make your vacant property stand out online.

Nutshell does all of our photography in-house, and free of charge.

Tenant Screening and Selection

Now your property marketing campaign is up and running, it’s time to choose a tenant.

A property manager will (or at least should) follow a thorough screening process. It all starts with the property viewing where our agents will get to know the business. From there, your property manager will have them fill out an application form and a credit check.

Rent Negotiations

Base rent is the most important item on a terms sheet. Property Managers are expert negotiators and will be sure to get you the most for your property.

Lease Negotiations

Rent is one part of a commercial lease but there are lots of other things to consider. For example:

  • Lease term
  • Outgoings
  • Rent increases
  • Market reviews
  • Option periods
  • Bonds or bank guarantees.
  • Make-good
  • Payment terms
  • Insurance
  • Personal guarantees
  • …and more.

There’s a lot to consider in a lease. Our experience tells us where to make tradeoffs and where to stand firm.

Your Property Manager will handle this for you.

What is Property Management?

We have looked at all the specific tasks involved with leasing a property. But that’s just half the job. Now your property manager has to manage the tenant, and your property, throughout the lease. Let’s look as some of the things involved…

Rental Arrears Management

Your Property Manager should always have a handle on rent collection. They should be using the latest software to help them keep track of who has paid and who is overdue. And, by law, they should be using an accredited trust account.

Managing rent arrears is both an art and a science. It’s also one of our biggest tasks as a property management company.

Accounting

Keeping an accurate record of income, expenses and GST for your investment property can be a lot of work if you do it yourself.

Each month our clients receive an easy to read statement. Then at the end of each financial year, clients receive a tax summary. This is one single report you can hand to your accountant, saving them time and you money.

Reactive and Proactive Maintenance

This is one of the more time consuming tasks that a property manager will handle for you. Whether it’s reacting to a leaky roof, or carrying out a maintenance schedule, your property manager will have you covered.

Contractor Procurement

AKA finding tradies. In today’s building boom, it can be a pain trying to find tradespeople for maintenance work. Leave it up to your manager.

Property Inspections

Not all commercial property managers see the value of inspections. Indeed, some commercial property managers don’t even carry out inspections for their clients.However, it’s an essential part of the job. After all, we need to know if the tenant is looking after your building!

Vacancy Minimisation

Vacancy is the number one ROI killer as a commercial property investor. Nutshell take a proactive approach to managing vacancy. We have a number of techniques that we use together to minimise the time your property sits vacant.



Lease Administration

One of the most important parts of a property manager’s job is to ensure that the tenants follow the terms of the lease. Leases can be 30+ pages long, with lots of complicated clauses including:

  • Rent
  • Terms
  • Outgoings
  • Maintenance tasks
  • Security Deposits and Bonds
  • Insurance

Just to name a few.

Tenant Relationships

Nutshell is the first port of call for any tenant enquiry. Clients who have never managed a property themselves are sometimes surprised how often tenants call us with all sorts of questions. Our team will field all these calls and only contact you when 100% necessary. Saving you time and effort!

To learn more about Nutshell’s Property Management and Leasing services, get in touch with us today.

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