Do you feel daunted in managing a substantial commercial property portfolio? Perhaps you’re worried about the potential challenges of Brexit. Or perhaps you want to expand your portfolio but are overwhelmed by the potential increase in admin.
With global politics, national economy fluctuations and industry legislation changes to consider, landlords have a lot on their plate. However, the key to successful property investment is in efficiently managing your properties and ensuring that your tenants are well looked after. As with many things, an outside eye can prove crucial in making good decisions. So our top five tips are here to guide you on the path to managing your expanding portfolio.
1. Keeping Good Tenants
Clearly, the best way to minimise the admin of a commercial property is to simply not lose a good tenant. Sometimes the loss of a tenant can be totally beyond your control. However, often a positive relationship can be easily forged by involving an experienced property manager. When building maintenance is efficiently managed and administrative systems are not allowed to slip, tenants feel appreciated and the resulting longevity of contract is beneficial to all parties. When you do lose a tenant, your relationship with a commercial property agency like Curchod & Co will soon see the vacancy filled.
If your portfolio is limited to retail or office property, any decrease in demand will cause your income to suffer. This is why sector diversification is a popular move among portfolio landlords. Industrial premises benefit from extended relief of business rates on vacant occupation for example. However, this direction does not come without risks. The challenge here is in the extent of knowledge required. Using an experienced commercial property manager such as Curchod & Co who has experience and exposure to industry trends and sector specific legislation should help investors make informed decisions.
3. Geographic Spread
Some economic trends are national, some local. Because of this, diversifying the areas from which you add to your commercial portfolio can protect you from succumbing to any area specific depreciation in property value. Value fluctuations caused by things such as major national infrastructure change can be predicted in the medium term. However, for long standing investments or unexpected acts of nature such as flooding, future planning is less realistic. When popular advice is to invest locally where you know the market, how is geographic diversification best managed? A property management agency covering multiple territories allows you to benefit from the local knowledge held by managers whilst still spreading your investments across counties.
4. Future Proofing
While well scheduled and implemented maintenance programmes are a great way to retain reliable tenants, the next step is to consider the future of your buildings. In the long term, a building should be able to accommodate future technical developments and ways of working. The best way to achieve this is in flexibility and connectivity. Wireless capability is desirable, and forward thinking organisations are now putting more emphasis on ecological sustainability, energy efficiency and social integration for workers. Commercial property professionals know what elements of a property are on the rise in popularity, allowing you to make the wisest alterations to your property to keep it up to date into the long term.
5. Tapping into Experience
At Curchod & Co our commercial property professionals have years of experience across regions and sectors. We have up to date knowledge and ongoing understanding of both relevant legislation and economic trends. With many heads under one roof, working with us as an agent, negotiator or property manager will minimise your risk and optimise your success. The location and sector of your next commercial property are the most pivotal decisions that you will make in the future health of your investments. By working with the advice and ongoing management of an experienced commercial property manager, your portfolio will thrive.