Changing Your Commercial Property Manager
THE BENEFITS
Why Changing Your Property Manager Might Be Worth The Hassle
Having the right commercial property manager is critical to the success of your property investment. But the idea of changing managing agent can be a daunting one. Is it worth it? What problems might you encounter? And how do you actually go about it? Here we’ll try to take you through why it just might be worth you doing, and the things to look out for while you make the transition.
- Improved performance
A fresh perspective can often identify areas for improvement that were previously overlooked. New property managers bring different experiences and strategies that can enhance the overall performance of your property. From improving maintenance practices, spotting issues with leases, or implementing new ideas to increase occupancy rates, a new managing agent can see the wood for the trees and make recommendations early on.
Think you might benefit from a fresh pair of eyes? We’d love to talk to you about how we might be able to help.
2. Improved Tenant Relations
Switching to a new property manager can rejuvenate tenant relationships. A proactive and responsive manager can address tenant concerns more effectively, leading to higher tenant satisfaction and retention rates. Happy tenants are more likely to renew leases and recommend your property to others.
3. Cost Efficiency
A new property manager’s fresh approach could include cost-saving measures that your previous manager had not considered. This could involve renegotiating service contracts, implementing energy-saving initiatives, or finding more cost-effective maintenance solutions. Over time, these savings can significantly boost your bottom line.
4. Access to Technology
Modern property management requires good quality technology to streamline operations. A new property manager will often bring updated software and systems that enhance communication, financial tracking, and maintenance scheduling, improving tenant experiences and making your property management more efficient.
5. Expertise and Specialisation
Your new property manager will bring their own specific expertise to your property. If your property has unique requirements, such as sustainability certifications or specialised tenant needs, selecting a new property manager with expertise in these areas can add substantial value. For more advice on how to choose the right managing agent, you can read our blog on that topic here.
6. Improved Marketing Strategies
A new property manager will bring a fresh approach to marketing, helping to attract different, high-quality tenants. From targeted digital marketing campaigns to professional property showings, refreshing your marketing can increase your property’s visibility and appeal in the market – and improve your ROI as a result.
7. Proactive Maintenance
Changing property managers can often be a catalyst to deliver a more proactive approach to maintenance. They can reinvigorate regular inspection schedules and preventative maintenance plans that reduce the likelihood of major repairs in the future.
What To Consider When Switching Property Managers
Changing your managing agent doesn’t have to be daunting – but it does make sense to consider what you’ll need to think about when making the change to ensure everything goes as smoothly as possible.
1. Transition Period
Switching property managers involves a transition period during which there might be some disruption. Ensure that the new manager has a comprehensive transition plan to minimise any impact on tenants and property operations.
2. Termination Clauses
Review your current contract to understand the termination clauses and any potential financial penalties. Ensure that the switch complies with legal requirements to avoid unnecessary costs or legal disputes. If in doubt, get in touch and we can advise you on your options.
3. Compatibility and Communication
Ensure that the new property manager’s style and approach align with your goals and expectations. Effective communication is crucial for a successful partnership, so assess their responsiveness and willingness to collaborate. For more suggestions on what to consider when choosing a new agent, see our blog on that topic here.
4. Due Diligence
Conduct thorough due diligence on potential new property managers. Check their references, review their track record, and ensure they have the necessary licenses and insurance. A careful vetting process can prevent future issues and ensure a good fit.
5. Costs and Fees
Understand the fee structure of the new property manager and compare it with your current one. Bear in mind, though, that any increase in fees might well be offset by cost savings implemented by the new managing agent.
Switching to a new commercial property manager can make a real difference to the experience of your tenants, the cost efficiency of your property, and ultimately improve your return on investment. But as with any significant change, it’s vital that you consider the transition period, termination clauses, compatibility, due diligence, and any associated costs to ensure a smooth and beneficial switch.
At Shepherd Property Consultants, we pride ourselves on providing top-notch property management services tailored to meet the unique needs of our clients. If you think you might benefit from changing managing agents, please do contact us today to learn more about how we can help you maximise the value and success of your commercial property.
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