Tips for managing your commercial investment property

Font Size:

Looking after your own commercial property may seem like an appealing option but when you consider what could go wrong, you may be better off engaging a professional.

The two biggest myths in the commercial property business exist around self-management.

Looking after your own commercial property may seem like an appealing option. “Why reduce my investment return by paying an agent to do a job I could easily do?”, you may ask. But for many property owners, it doesn’t take long to discover that self-managing is not as simple as it seems and many end up worse off financially.

Myth #1:  Management is easy, just collect the rent and arrange the odd repair.
Effective commercial property management is so much more than just rent collection and repairs.

You need to consider legal compliance, essential services, rent reviews, lease structure for asset enhancement, potential defaults, appropriate charge back of outgoings, financial reporting for tax time, and that’s just the start of it.

Strict government regulations and the requirement for stringent compliance means if you haven’t got everything absolutely covered, you leave yourself open to significant risk. For example, did you know that failure to comply with essential services legislation means you may not be covered in the event of a building insurance claim?

Myth #2:  Self-management saves money
Probably not. Have you factored in the cost of using accountants to prepare financial statements for tax time and lawyers to provide advice, billed at top rates and in 15-minute increments?

Perhaps you may inadvertently cause yourself loss through missing a critical rent review, adversely affecting the capital value of your property through a poorly structured lease agreement, or forget to recover claimable outgoings from the tenant. (Depending on the lease, management fees may even be recoverable from the tenant.)

If you feel it’s time to move away from self management, GormanKelly would be pleased to help.

Benchmarked by Macquarie Bank against 70 commercial agencies, GormanKelly has been ranked as one of Australia’s pre-eminent commercial management firms.

It is involved in all aspects of commercial property – property management, selling, buying, leasing, valuations and project development consulting.

GormanKelly’s specialty is private client portfolio management, and general property advice for private individuals, families, corporate and government organisations.

No matter what clients’ needs are, its approach is always the same. It aims to excel in every detail of the process, and be a joy to deal with.

Find out more at GormanKelly.com.au or call (03) 9810 7200.

Join YourLifeChoices today
and get this free eBook!

Join
By joining YourLifeChoices you consent that you have read and agree to our Terms & Conditions and Privacy Policy

RELATED LINKS

GormanKelly can negotiate the best outcome for you

Allow GormanKelly to negotiate the best outcome for you and your portfolio.

Written by Sponsored Content

1 Comments

Total Comments: 1
  1. 0
    0

    So many of the ‘property managers’ I interviewed were little more than young receptionists who sometimes had 200 properties to look after. If you have the time to be hands on, find a short course in being a landlord (Adelaide WEA did have a one-day course) and join your state Landlords Association. Of course you may occasionally get burnt but I have also seen that happen to people using property managers. (It helps if you live near the rental property as you don’t want a day outing every time you do an open inspection.)


FACEBOOK COMMENTS



SPONSORED LINKS

continue reading

Health

Mozzies biting? Here's how to choose a repellent - and how to use it

Mozzies biting? Here's how to choose a repellent (and how to use it for the best protection) Shutterstock Cameron Webb,...

Entertainment

Sir Bob Geldof on grief, fame and getting through it all

I've hardly started questioning Sir Bob Geldof before he is off on a long, sweary rant about everything he thinks...

Australia

Abandon Australia Day and choose the history we want to celebrate?

Australia Day is the anniversary of the arrival of the First Fleet in Australia. On 26 January 1788, 11 convict...

Community

Speaking up for the disappearing art of listening

Columnist Peter Leith is 91 and describes himself as "half-deaf and half-blind". But he sees and hears a lot and...

Beauty

Hyperpigmentation: How to tackle those tricky dark patches on your ski

There are plenty of great things about summer - sunshine, picnics and fruity cocktails immediately spring to mind - but...

Australia

Enthralling, dystopian, sublime: NGV Triennial has a huge 'wow' factor

Refik Anadol: Quantum memories 2020 (render) custom software, quantum computing, generative algorithm with artificial intelligence (AI), real time digital animation...

Australia

Where to eat, drink and play on Kangaroo Island

Australia's third largest island is an oasis of pristine wilderness, premium produce and hidden secrets ripe for discovery. Easily accessible...

COVID-19

Will you need a vaccination to visit Australian venues?

State premiers have suggested that once vaccinations begin in Australia, those without vaccinations may be banned from visiting some venues...

LOADING MORE ARTICLE...