Are management fees worth the cost?
This is a great read for anyone who is curious about employing an Asset (Property) Manager.
Commercial property is a business and can be complex if you are not immersed in it every day. As a property owner, having your assets professionally managed will free up your time, remove stress, keep everything compliant and maximise returns.
For Viranda, people are the lifeblood of our business and success is measured by the long-term wealth we can build for every client. One of the best ways we can achieve success for clients is through exceptional asset management.
To explore the benefits of paying a management fee, we quizzed Viranda’s Asset Manager, Caroline McNaught.
- What can you expect?Asset Managers (AM) ensure payment of rent and undertake regular property inspections on your behalf. They also deal with day-to-day property matters that arise and keep in regular communication with tenants – essentially freeing you up to enjoy your asset.
An AM will collate, approve, and apportion all outgoings from the tenant including any operating expenses due e.g., rates, property insurance and body corporate fees.
If required, an AM can also be on-call for tenants and related professionals to liaise on property matters on your behalf.
- Finger on the pulse.An experienced AM will present commercial property opportunities to you that match your financial goals, along with ideas to further enhance lease security, increase capital gains, add-value to, or grow your portfolio.
This in-depth market knowledge helps clients make the right decisions and was certainly put to the test with Covid. During this difficult time, our extensive dealings with landlords, lawyers, accountants and market professionals meant we could pass on strategic advice in a timely manner to clients.
- Inhouse Facilities Management.Viranda has an inhouse Facilities Manager who ensures all buildings are maintained in a good condition and kept compliant. In an industry fraught with fishhooks, Richard plays a key role in protecting owners from risk and liability. It’s a service Viranda’s clients have come to respect and trust.
- Managing Relationships.The relationship between a tenant and owner is often kept positive because of the mediator role an AM plays on client’s behalf to resolve conflict and recover rent/OPEX arrears.
Again, Covid had a strong impact on the economy, introducing feelings of uncertainty among landlords and tenants – Viranda’s team proved invaluable for resolving disputes and keeping buildings occupied during an unpredictable time.
- Adding value to assets. Negotiating lease and rent reviews is a strategic skillset and something a good AM is doing regularly. Our goal is to ensure a client’s asset value is maximised at all times.
If you would like to discuss how an Asset Manager can play a vital role in the success of your commercial property journey, please reach out.