Property managers collaborate with brokers to offer comprehensive asset management services
Commercial property owners who rent out their buildings to tenants will most likely all have used the services of a property manager, as well as those of a property broker. Property asset management utilizes both property management services and leasing and brokerage services to maintain and enhance the value of an investment property. Although this service may appear as an added expense, the result is usually an increase in both the net income from the property and the value of the asset.
Sean Paul, Executive Director of Spire Property Management – who offer a property asset management service, explains that as an asset, a commercial building makes money for its owner through its rental income. So a commercial property’s tenant mix, tenant retention and tenant attraction strategy are of paramount importance. “For this reason, it is important for property managers to collaborate with property brokers who are experts in their fields.”
“This way, as property asset managers, we are able to offer a service to our clients that involves both the fiscal and the physical maintenance of the property, all the while capturing a greater target tenant market. In general, the role of direct day-to-day property management involves the effective operational management and operation of commercial or residential properties. A property manager acts on behalf of the owner in roles such as collecting rental, lease administration, maintenance of the property, working with staff and contractors, risk management, enforcing rules and guidelines, and importantly – tenant relations in a bid to ensure tenant satisfaction and ultimately retention.”
“By comparison, property asset management is a broader more returns based thing. It is centered on financial matters and focuses on maximizing the return on investment and identifying new methods of creating additional value in the asset,” says Paul, who goes on to advise that whereas in the past these roles where separate and distinct from each other, this is evolving. Now property managers often need to also be able to act to as asset managers, seeking to maximise the earning potential of a building for their client.
According to Gregg Huntingford, CEO of Spire, firms that integrate leasing and brokerage services with property management provide the owners with the resultant benefit of a comprehensive oversight of the property or portfolio of properties, that addresses all these issues. “The key” he adds” is to be able to offer a comprehensive service, but be flexible enough with the help of strategic property partners, to offer specialist services as well”
“Spire Property Management works with an extensive network of property brokers across South Africa who are experts in their respective fields and areas. We believe that bringing in skilful resources and collaborating with them is the best way to ensure top results for our clients.”
“Regular communication between the property managers and the brokers improves the overall management of the property. As a team, they work to minimize vacancies, ensure a good tenant mix in multi-tenant properties, and enhance the value of the property. Ultimately this allows for a wholesome, effective property management team that thrives with our clients in mind.”