Property Management – Van Nuys – Residential and Commercial Property Managers

Property Management Challenges

The challenges you face as a property manager of office properties haven’t really changed over the years. However, what has changed is the cause of the problems you have. Here are some of the universal issues facing property managers today:

• Operating costs – Skyrocketing energy costs are hurting every property manager of every type of building. Higher direct costs can be seen in your utility bills. Increased indirect costs show up in higher prices for just about everything you purchase, from soap to light bulbs to construction materials. Energy saving initiatives should be a priority, as well as a strong maintenance program to make sure all your heating and cooling systems are in top-notch running condition. Buying supplies and equipment in volume can offset rising costs.
• Staffing/Services – It is a constant challenge to find, train, motivate and keep a customer-focused staff. Excellent training and competitive wages can go a long way toward retaining your staff. In addition, letting them know they are goodwill ambassadors and they are an important part of the operation is key – ask for their input and expect them to take ownership and be accountable. Staffing problems can also spill over to the services you contract out, such as janitorial services. Unions have become more aggressive about demanding higher wages and more benefits. When negotiating new service contracts, make sure you look at your historical data and see if there are any potential savings you can uncover and possibly negotiate more favorable terms.
• Tenants – It is estimated that it costs seven times more to bring on a new tenant then it does to renew an existing tenant, so taking care of them should be paramount. One thing that has not changed over the years is a tenant’s demand for comfort. They want the heating to work in the winter, the air conditioner to work in the summer, they want to feel secure and they want to have pride in their facility. What has changed, is the amenities tenants want. Tenants are also driven by their bottom line, so they are focused on using their space more efficiently by increasing their density through creative floor plans. Other important areas include ADA compliance and telecom and high-speed internet access.
• Leases – Tenant leases have become a huge issue for today’s property managers. The important thing to remember is that landlords really drive the lease terms, even though tenants can be tough negotiators. Landlords are trying to reduce the rights and options of their tenants, while tenants are looking for more flexibility with shorter terms, the ability to sublet or more termination options. The key is to find a middle ground. For new tenants, negotiations may include concession packages for free rent and improvement allowances.

Because property management is such a customer-focused business, the more time you can spend dealing with your tenants, your staff and your vendors, or developing and implementing programs that will enhance your tenants’ experience, the better. But it is difficult, because your true master remains your bottom line.

From: http://www.ssctech.com/

Carnahan Property Management Services Woodland Hills,West Hills,Bell Canyon, Hidden Hills, Calabasas, Canoga Park, Tarzana, Reseda, Topanga, Encino, Northridge, Van Nuys,North Hills,Chatsworth, Sherman Oaks, Studio City, North Hollywood, West Hollywood, San Fernando Valley, Granada Hills, Mission Hills, Simi Valley, WestLake Village, Agoura, Toluca Lake, Valley Village, Burbank. Call us at (818) 884-1500