Commercial property management can seem like a balancing act between spending money to maintain it and making it pay as an investment. Your premises needs to work on a number of levels , not least to ensure good, sustainable long-term tenancies, and part of this is knowing how to manage the condition of your commercial property without it becoming a financial drain.
As an investment, your commercial property is an asset first and an income second. Whilst there is nothing wrong with turning a profit, the revenue generated from leasing a commercial property is sometimes best used in maintaining or improving the condition of the premises to protect its sale value and to ensure its value to commercial tenants. The latter involves ensuring services, fixtures and fittings are in good working condition and that the presentation and functions of the property are geared up to meet the needs of the type of tenant most suited to its location and property type. Holding back on repairs or maintenance may save you a bit of cash in the short term, but is detrimental to the value of your asset in the long-term and could potentially lose you that revenue altogether for several months or more if your tenant decides to move to a better maintained site. A good accountant or commercial property manager will be able to help you with drawing up a maintenance plan or budget for a refurbishment in a way that keeps your ledger in the black if you spread it over several years.
For professional advice on creating a workable refit budget or property maintenance plan contact Business Property Management
A well-maintained appropriately fitted out premises is just as important for your tenants as it is for you, as the physical space of a business is an integral part of its branding and its reputation with customers. If the condition of your premises doesn’t reflect the image the tenant’s business wants to project, then that business is better off looking for somewhere that does.
Next time we look at how to improve your property-tenant matchmaking abilities
