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Rising interest rates, inflation and the continued effects of the pandemic have plagued the property market in 2022.
In an ever-changing market, it is vital for property managers to know how to respond to shifting conditions. That’s why I’m sharing five tips for property managers on how to successfully manage commercial properties in 2022.
1. Remain informed
With office vacancy rates oscillating heavily throughout 2022, property managers need to be prepared to address moments of downturn whilst also keeping assets buoyant during periods of high performance.
In an unpredictable market, it is key to remain up to date on market conditions. Being prepared will help you successfully address the unexpected.
Conduct a daily news scan or set up Google Alerts to ensure you remain informed of macro-level issues such as legislative changes in the industry, or new research that provides insight into changing property management trends.
By forecasting potential issues and developing proactive strategies, you can successfully safeguard your assets throughout 2022.
2. Know your tenant
It’s no secret that COVID-19 has significantly shaped consumer desires.
Following prolonged lockdowns, many Australians have a renewed desire for outdoor spaces, greenery, touchless facilities, and social breakout spaces.
Some tenants have also become nervous about committing to long-term leases; if you’re struggling with high vacancy rates, being more accommodating to shorter or more flexible tenancies may be the answer.
Understanding your tenants and their desires, as well as fostering a positive, trusting relationship, will encourage them to renew their leases and secure long-term cash flow.
3. Go digital
In a fast-paced and volatile market, creating efficiencies is key.
A common mistake for newer property managers (and the property industry as a whole) is not embracing technology, and instead using old and outdated spreadsheets and desktops.
Consider investing in a cloud-based property management system such as Re-Leased that will allow you to put precious time back in your pocket. This technology can help remove tedious administration tasks, automate rent collection, and eliminate human error. This means time and focus can be spent on more important tasks, such as regular inspections and tenant relations.
4. Focus on your current assets
With interest rates forecast to peak at 2.5 to 3 per cent by the end of 2022, it’s important not to bite off more than you can chew.
Consider holding off on buying or managing additional assets during this time. Instead, focus your energy on managing your existing assets well, rather than dividing your focus across more than is feasible.
5. Remain agile
The market is ever-changing. It’s how you respond to unexpected events and adversity that separates successful property managers from stagnant ones.
Remain ahead of the curve, know what your tenants want, and don’t get too comfortable. Try to actively anticipate obstacles such as rising interest or vacancy rates and create a strategic plan to address these issues should they arise. The market has been extremely variable and will continue to shift and evolve before 2022’s end.
Property managers must remain agile and flexible to succeed in an ever-changing market.
Tom Wallace is the chief executive of Re-Leased.
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