There are major property operators on the market who are capable of managing a sizeable commercial site at a cheaper cost. These organisations often have a global network that can offer full commercial properties in the best business locations in the major capitals of the world. Outsourcing property management means you can access properties that are not only set up for all your technology and business needs, but even provide all the necessary support staff from reception to security. These organisations offer services covering:
- Agricultural land and property market
- Residential
- Retail
- Office
- Industrial
The core competency of these businesses is to manage commercial real estate within the property portfolio your company is using and leasing from them. You can select one of our products and then customise it by adding on services that you require or removing ones that you don’t.
Knowing what you pay for
‘Location, location, location’ is the primary driver of cost from a property company. The premium stems from varying levels of service quality and scope. Although prices differ between property companies, it is usually the more established retail agents that charge higher rates compared to smaller, less advertised businesses. This is because larger retail agents usually offer a broader scope of services and usually at a higher quality and so you pay a premium. It is important to consider the terms and conditions of your agreement before committing to anything.
For many businesses this is how they manage their property portfolio; they outsource it to others who consider it their ‘bread and butter’ business. With the way we all work, and the state of the economy, it makes sense to reduce your capital outlay.
It’s also vital to have transparency and an understanding of what you’re paying for and why. Even when outsourcing property management, it is important to remember that as a tenant you also play a role in the upkeep of the property. Read carefully the monthly rental invoices for each and every type of space and property you have paid to the property management company.
How do you measure if the space you’re using best suits your needs? How do you measure value for money? In a word you can’t because you’re outsourcing it to a service provider.
You’ve lost the internal knowhow of managing your own property. You may think you don’t need an estates department if you don’t own any property but you need to maintain a level of in-house knowledge.
Hiring and keeping a full time person or alternatively training people from your existing business will cover extra tasks each month. Investing some capital into this system will help support the regular yet important tasks, whilst adding value to your business.
The options open to you depend on your needs and these will vary. It’s a question of getting the right people with the right tools at the right time.
How Hein Consulting can help:
We can lend a hand by breaking down exactly what it is you need and show you the options, even providing the temporary or long term solutions you need. If it’s getting the right people or training existing departments and providing the right tools and systems, then we can help. But we tend to start the work by reviewing your overall business strategy in terms of expansion or consolidation, and the related real estate portfolio needed. These will then be developed into your specific real estate development strategies.
We can support you in the set up or provide ongoing practical support in commercial property management with our specialist property management practitioners. So if you’re looking for practical support and ways to set up or manage your property portfolio, please contact us and we’ll be happy to discuss the various available for you.