Commercial Property Management - Checklist for Property Management Handovers

When you take over the management of a commercial or retail property today, the information that you gather from the outgoing property manager or landlord will be critical to the establishment and future success of your property management processes.

Information is Critical

Property

Lack of information in the handover process means problems and potential errors in the future. On that basis you should have a specialised handover process that you can implement on and with the handover of every property type within your local area. A checklist will help your activities as you bring in the new property to the management portfolio.

Commercial Property Management - Checklist for Property Management Handovers

Here are some ideas to incorporate into your handover checklist:

1. Get complete and comprehensive details of all leases and licensed occupied areas within the property. You will need to check these against the tenants physically in occupancy and the rental invoices that are raised for tenancy payment. Everything has to cross relate accurately.


2. Copies of lease documents should be checked against the original documentation. Also look for side agreements for any extension or variance documentation relating to the original lease.


3. Copies of correspondence relating to existing tenancy matters should be handed to you. Ask for this specifically and drill down on the details of each matter.


4. Get copies of the current rental invoices and cross reference these to the tenancy schedules for the property. It is not unusual to come across in errors in the tenancy schedule or the rental invoices.


5. The tenancy schedule should be checked against the actual leases and other occupancy papers and the signed documentation between the landlord and tenant.


6. Check all outgoings charges and expenses that are applied to the tenancies within the managed property. The charging process should be shown on the rental invoices; you will need to check this amount and the process of recover that is adopted. It is not unusual to see errors in the outgoings recovery with tenants in managed properties. The process of checking will involve you getting copies of the current outgoings budget and the recent outgoings reconciliation.


7. The arrears that apply to the property and any tenancies should be identified as part of the handover. They are sometimes discharged at the time of settlement, although the question should be raised in case you are taking over the ongoing pursuit of the arrears with any existing tenants. If that is the case you will need copies of all previous correspondence and claims.


8. Current vacant tenancies within the premises may be the subject of lease negotiation. You will need copies of the lease offers that are or have been made and the status of the existing negotiations.


9. Details of the maintenance issues within the building will be required. The essential services within the building will be critical maintenance contracts to identify early in the Handover. Any threats to the stability and function of essential services should be identified and addressed immediately. The maintenance contractors for the building will understand the function of the existing plant and machinery; get details of these contractors and then set up meetings as quickly as possible.


10. Ask about any orders or notices that apply to the property or any part thereof. Check out any encumbrances, rights of way, or easements that apply to property usage.

So these are some of the main items that apply to the property management handover process. There will always be more issues and items to look at although these items listed above are the big ones to immediately get under control.

Commercial Property Management - Checklist for Property Management Handovers

If you want some more tips and ideas to help your commercial real estate agency and convert more opportunity into listings and commissions, you can get a free eBook of tips and tools at http://www.commercial-realestate-training.com

John Highman is an experienced Commercial Real Estate Agent, International Speaker, and Sales Coach.

Property Checklist - What to Look For When Buying A Property

Investing in real estate property is something that many do in order to secure profits. Some make an entire career out of it and others do it on the side to supplement their income. Other investors do so with the idea that they will keep ownership of the property and lease or rent it out for commercial purposes. Whatever the investment may do, there are certain checkpoints that an investor will want to accomplish before signing on the dotted line when obtaining a property.

1- Know your property

Property

Visit the property you're interested in at several different times of day or evening. The reason for that is that some things will look different in different lights. If there's a shadow on the wall during the day and you come back as the sun's going down or it already had and the shadow is still there, that might be a sign of a water problem behind the walls. If you only take a cursory glance at the property, you may end up missing things that will cost you down the line. Once is not enough. You should go through the property three or four different times and don't forget to look at the exterior as well as the interior.

Property Checklist - What to Look For When Buying A Property

2- Bring an expert on a walk through

If you know someone involved in construction or another trade, there's a good chance that they may know some things that you don't when looking at the building. For example, you may think that a discolouration on the siding is due to sun damage over time. A trained tradesman may look at that same discolouration and tell you that it's not sun damage, but instead there's mould growing behind the siding. That's a complete dramatisation of course, plenty of siding will fade because of sun, but it's also something that could be hiding something else. An expert will be able to tell the difference. They will be able to see curling shingles and know the roof will need replacing shortly. They will know that the basement looks brand new not because it was recently remodelled but because there was recent water damage and the owners had to make it look nice. They will also know how to double check and see if the owners fixed the problem correctly or just made it look good.

3- Know the potential use for the property

In knowing what the property will be used for, you will know exactly what will be needed in the property. It costs money to add things or take them away. Better to have a property that is perfect for the type of business that will use the space than have to spend money on adding bits later.

4- Know the background of the property

Don't forget to stop by your local county building and research if there are any liens or back taxes owed on the property. The information is public which means that you are able to look it up with no restrictions. It's free to do and usually easier to access than you may think. In some cases you can look up the information on the internet, but that will vary with each county.

Taking into account these points before deciding on the investment will save you both time and money. You will go into the investment armed with all of the knowledge that you will need to negotiate wisely and know that your property will yield you profitable results.

Property Checklist - What to Look For When Buying A Property

Derek Rogers is a freelance writer who represents a number of UK businesses. When it comes to buying below market value property [http://www.vip-service.co.uk/below-market-value.html], he recommends Newcastle Residential Investments.