They say the most profitable customers are the ones who are already on your books, and for commercial property management agents, this has historically been the carrot that attracts landlords to them in the first place.
But despite it being a valuable recurring income stream for agents, with so much competition among them, prices continue to be driven down.
This has led to agents seeing commercial property management as a loss leader to attract landlords to other more profitable areas of the business.
4 reasons why this needs to change
While you, as a landlord, may be getting a better price, the quality of service your tenants receive may not be as good as it once was, especially from agents who deem it not profitable enough. This is a problem because…
1. Property management is a skill – no two commercial properties are the same. Each requires different levels of time and expertise, which only an experienced, committed agent can bring.
2. Your reputation is on the line – with lower or non-existent margins for agents comes poor quality staff. Would you want a non-qualified, junior staff member looking after one of your most significant assets, and risking unrest among your tenants?
3. It’s dangerous to cut corners – there are a huge number of processes and regulations in commercial property management, and if these aren’t followed correctly, it could put you in civil or even criminal bother.
4. Lack of investment affects performance – good agents manage properties efficiently using the latest technology, which requires continual investment as a result. Agents who see this area of the business as a loss leader are unlikely to be putting much money into it.
Why it pays to spend a little more
There’s an old saying: “If you pay peanuts, you get monkeys” and this couldn’t be truer for landlords right now.
Paying a reasonable and proper fee to property managers will give you access to a more competent, committed and capable set of people who will:
· Treat properties as if they were their own
· Follow procedures to the letter
· Save you far more time and money
· Generate value in the long run
With shorter leases these days, tenants have a greater sway than ever when it comes to choosing a base for their business. That’s why their experience is crucial.
Agents who recognise this make sure that tenants’ needs come first, by making the entire tenancy process seamless and sorting problems quickly and effectively.
Since property always has, and probably always will be a people business, you should appoint an agent who can demonstrate how they will add value through their personality, skill and experience.
Choose an agent you can trust
If you’re currently looking for a company to manage a new property, or you’re unhappy with the agent you’re currently using, our team can help.
Our commercial property team knows how to maintain the upkeep of your building, do everything by the book and keep tenants happy. Get in touch at firstname.lastname@example.org or 01225 904704 to talk it through today.