To preserve the long-term value of commercial assets, it is important to put a management plan team in place upon acquisition. For owners that don’t have the capacity or desire to manage the assets themselves, hiring a property management team that also owns commercial properties can be beneficial. Below are three things to consider when looking to hire a management team.
Thinking Like the Customer
When choosing a property management team to work with, groups that manage their own assets are often the best partners as they understand the need to implement systems and programs that maximize a property’s long-term value. Using the same reporting metrics, financial tools, and management reports designed for themselves, they have the same mindset when it comes to putting cost-efficient systems in place that are designed to add value.
They also understand that it isn’t only about the building. One of the most critical parts of the property management process is maintaining strong tenant relationships. This includes hiring on-site staff to support tenant requests as well as leveraging technology that allows work order requests to be submitted and tracked 24 hours a day, 7 days a week. Having a team that can report back to the property owner and keep tenants updated on property enhancements, support, and services is essential.
Understanding Effective Operations
Performing regular maintenance and proactively identifying opportunities to reduce operational risk is the difference between incurring minor versus major expenses. By working with a property manager that also owns a portfolio of commercial assets, clients benefit from experienced professionals that know what maintenance plans and processes are the most effective for each property type. In addition to providing a schedule for servicing systems, conducting interior and external inspections, property condition audits, and reporting, these professionals are also experienced at reviewing contracts with third-party vendors to ensure that services are delivered on time and within budget. As an owner, they also know how to implement cost-saving strategies and negotiate pricing with service providers.
Incorporating Management Metrics
Monitoring the financial health of commercial buildings requires financial professionals that understand best practices for property accounting. Working with property managers who own assets, property owners benefit from same technology used by the property manager to produce financial reports for its own properties. In addition to preparing operating & capital budgets, balance sheets, cash flow reports, income statements, general ledgers and cash disbursements, it is important to have a property manager that understands how to create expense reconciliations as well as generate and explain month and year-to-date variance reports to explain how well the property is performing financially.
KennMar’s Proven Process
As an AMO® (Accredited Management Organization) and property owners ourselves, KennMar understands the unique needs of each owner and asset. Our approach is not a “one-size fits all” philosophy but rather tailored for each individual client. While the services we offer range from on-site management, contingency planning and maintenance, we recognize that not every property owner will require this level of expertise. With that in mind, the first step in our proven process is to map out a plan that is primarily focused on each owner’s goals and expectations for maximizing value.
With over 250 years of collective experience managing commercial office, retail, medical office, industrial and multifamily properties, the KennMar Property Management team is expertly equipped to support the needs of commercial property owners who require the services of a third-party asset manager. For information on how we can help you, please email us at info@KennMar.com.