Whether you are a landlord, investor or owner-occupier, if you own a retail store, you will be keenly aware of the importance of protecting your assets.
From taking care of everyday maintenance to collecting rent and making your buildings more sustainable, many landlords and retail companies simply don’t have the time or expertise to manage their premises in-house. And that is where retail property management services can be invaluable.
Here we explain what retail property management services are, the tasks they commonly include and the benefits you can expect.
What is retail property management?
Retail property management is a professional service designed to optimise the operations, maintenance and financial performance of retail properties. That includes everything from shopping centres, retail parks and supermarkets to department stores, fashion retailers and high street stores.
It includes a suite of services designed to attract and retain tenants, maximise profitability, maintain the building in the best possible condition and provide a safe and attractive shopping experience for customers.
By handling day-to-day and more complex tasks, professional property management for shops saves time for the landlord or owner-occupier, improves tenant relationships and enhances the property's value over the long term.
What services does retail property management commonly include?
Retail property management commonly includes a comprehensive range of services, including:
- Tenant management - A key aspect of retail property management is maximising the income from the property and reducing void periods. To do that, property managers can handle all aspects of lease administration, such as lease agreements, renewals and terminations. They also evaluate new tenants and address the concerns of existing tenants.
- Property maintenance - Property managers perform repairs and preventative maintenance and oversee common areas, such as walkways, bathrooms and car parks. They also ensure building systems, such as electrical and plumbing, are functioning correctly. The goal is to create a safe and attractive environment for tenants and customers while protecting the asset’s value.
- Financial management - Commercial property managers also oversee the prompt collection and allocation of rent and service charges and create and manage budgets for the operation and maintenance of the building. They also produce reports for the property owners on income, expenses and performance.
- Strategic planning - Retail property managers must also be aware of the risks and opportunities that exist to optimise the long-term performance and profitability of the building. They need to stay abreast of the changing market conditions, consumer trends and the competitive landscape.
- Advertising and tenant sourcing - Marketing the property and sourcing new tenants is another core service. Some property managers are only paid when a property is occupied, so it’s in their interests to find quality tenants promptly. They use established networks and resources to find and screen potential tenants.
What are the benefits of retail property management?
By appointing retail property managers, landlords and owner-occupiers can focus on their core operations, safe in the knowledge that experienced professionals are looking after their investment. Here are some of the other benefits retail property management can bring.
Maximised rental income
Professional property managers use extensive databases and industry connections to identify and target new tenants. They also conduct market research to ensure the property is priced competitively and do thorough screening to secure long-term, reliable deals. That reduces void periods and increases your rental yield.
Legal compliance and risk reduction
Retail properties have significant legal and regulatory compliance responsibilities, which can be complex and time-consuming. Property managers handle these tasks on your behalf to make sure you’re compliant and reduce the risk of penalties.
Time and stress reduction
When you own a commercial property, you never know what’s going to go wrong next or how much upheaval it’s going to cause. Having a professional team on hand frees you up from these potentially time-consuming problems, whether it’s emergency repairs or responding to enquiries from tenants.
Access to expertise and resources
Retail property management teams have access to established networks of trusted contractors and professional service providers for prompt and specialised expertise. That should ensure any work is completed quickly and to a high standard to protect your asset.
Improved tenant relations
Having a team on hand to act as a point of contact for tenants, answer their questions and deal with any issues can lead to more satisfied tenants and longer lease agreements. Disputes can be expensive, time-consuming and difficult to solve. That’s why it’s in everyone’s best interests to prioritise tenant relations.
Financial benefits
Maximising rental income is not the only financial benefit of professional property management for shops. Property managers can also identify opportunities to enhance revenues and reduce costs. Regular reporting also allows you to track financial performance and make informed decisions.
Protect your retail property investment
Shopping centres, standalone stores and other retail spaces present unique opportunities for owner-occupiers and landlords, but managing them comes with challenges, and that’s where we can help.
At Eddisons, we provide a range of retail property services, including commercial property management, to keep your buildings and investment in the best possible shape. Find out more about our services and get in touch to discuss your goals with our team.
