Commercial real estate can be a valuable asset for building long-term wealth. However, managing your commercial investment property so that it sees a good return on investment also involves significant time and expertise. From attracting and retaining quality tenants to staying compliant with intricate commercial property regulations, it’s a big responsibility with many challenges, even for experienced investors.
That’s why commercial real estate investors at all levels, from brand new landlords to large multi-property institutions, choose to partner with professional commercial property management companies to get the most out of their investments.
By tapping into the specialised skills and systems provided by commercial property managers, investors can free up their schedule from the day-to-day supervision of their investments and instead focus their energy on other, often more lucrative or enjoyable priorities.
Commercial property managers can also contribute significant expertise and insight to optimise your investment, from in-depth knowledge of the Perth property market to handling the legal and financial complexities of property management.
This article explores who stands to benefit from partnering with a local commercial property manager.
1. New or Inexperienced Commercial Property Investors
If you’re new to commercial real estate, you may quickly find yourself facing a harsh reality: what works for residential real estate doesn’t always translate to commercial. Between elaborate lease terms, strict regulations, landlord-tenant laws, maintenance systems, and countless other niche intricacies, the learning curve can quickly become overwhelming. Even seasoned entrepreneurs can struggle to keep pace.
This is where specialised commercial property managers can help. With years of hard-won experience managing various commercial properties, they can guide new commercial investors to sidestep the growing pains and optimise returns from the very start.
2. Busy Professionals
For busy doctors, lawyers, entrepreneurs, and other professionals who are already time poor from their demanding day jobs, commercial real estate often represents an attractive hands-off investment opportunity with stable cashflow. However, even passive investments require some level of oversight to truly maximise returns. Between managing tenants, handling maintenance issues, overseeing contractors, updating leases, tracking finances, and keeping up with regulatory issues, self-managing commercial properties alongside an unrelated full-time career can quickly prove extremely difficult.
That’s why time-poor investors will often choose to partner with commercial property managers. Instead of playing catch up with tenant disputes and system emergencies nights and weekends, you can outsource the daily oversight to dedicated experts whose attention is solely on optimising financial performance, ensuring tenant satisfaction, and generally making sure everything is running smoothly with your commercial property.
Rather than a late-night headache on top of an intense job, property returns simply flow into monthly statements.
3. Interstate Investors
Whether investing in Perth was a carefully considered decision or you have ended up owning commercial real estate due to circumstance, plenty of investors see success with investment properties far from where they currently live. Perth is especially ripe with opportunity for commercial property investors, even those who live interstate.
However, while modern technology makes remote ownership of properties feasible in some ways, geographic distance still poses major challenges for self-management. For instance, coordinating maintenance, meeting potential tenants to tour vacant spaces, or performing regular inspections can become extremely difficult to coordinate from hundreds or thousands of kilometres away.
Hiring a local commercial property manager as your eyes, ears and boots on the ground is often the most sensible solution. Having a specialised team overseeing day-to-day operations, such as coordinating maintenance requests, resolving tenant issues, processing rent payments, and keeping tabs on the Perth property market trends can also provide invaluable peace of mind. Knowing all of this is being handled for you will give you the freedom to simply review the financial reports while focusing your energy on bigger portfolio strategy decisions or future acquisitions.
4. Multi-Property Owners
As savvy real estate investors grow their commercial property holdings over time across different buildings, markets, and even states, the management demands increase to match. You may find that what has been feasible to self-manage in the past is becoming increasingly challenging as you acquire more assets.
At a certain portfolio scale, it simply becomes impractical not delegate out the increasing workload to a professional property management company.
By systematising processes across your portfolio based on proven best practices refined over many years, commercial property managers can help you make the most of economies of scale, reduce redundancy, and take a load off your hands so you can focus on continuing to build your portfolio.
5. Anyone Who Wants to Maximise ROI
At their core, commercial property managers enable investors to maximise their returns over the full ownership lifecycle – not just collect stable rents and maintain basic operations. This means analysing strategic upgrades to achieve higher rental income, crunch numbers to optimise recoverable expenses and control costs, and implement preventative maintenance and tenant retention efforts to enhance occupancy rates.
For ROI-focused investors committed to long-term success, partnering with a forward-thinking commercial property management company means increased income and savings that far outweigh any management fees.
Partner with Commercial Property Management Specialists in Perth
Whether you’re a new investor or have an extensive property portfolio, leveraging professional commercial property management means that you can sit back, relax, and reap attractive cash flow with far fewer headaches.
At Vast Commercial Property, we are specialist commercial property managers proudly serving investors throughout Perth. Contact us today to learn how our bespoke, high-touch approach can optimise your commercial property’s financial performance.