The Value of Good Commercial Property Management


Do you currently own or are you looking to buy a commercial investment property?

If (or when) you have a commercial investment, you should consider how the property and tenancy will be managed, as this can have a big impact on the performance of your investment.

In the following blog, we will explore the value of having a good commercial property management service employed to look after your investment.

Management of Property Outgoings:

One of the key benefits of having a professional property management service is the ability to delegate much of the required administration to your agent. A significant part of this administration revolves around property outgoings, including maintenance costs, utilities, and other operational expenses. When you partner with a reputable property management team, you can have your outgoings sent directly to them. They will efficiently manage the payment process on your behalf, ensuring that nothing is overlooked.

Beyond simplifying administrative tasks, this service has a multitude of advantages. First, it greatly reduces the chances of outgoings payments being missed or neglected. Furthermore, a good management team will proactively recover any expenses that are recoverable from your tenant, maximising the return on your investment. Moreover, they will be able to setup outgoings budgets, whether for single-tenant or multi-tenant properties, as well as handle the annual outgoings reconciliations, all in compliance with relevant regulations, such as the Retail Leases Act.

This ensures that a critical component of the finances related to your commercial investment are managed efficiently and professionally, again helping to maximise your return.

Rent Increases & Reviews Done Accurately and On-Time:

Ensuring that rent increases are applied accurately and on time is essential for optimising the performance of your investment. A proficient commercial property management team will have the systems and processes in place to guarantee that these increases are executed precisely according to the terms of the lease. This attention to detail ensures that your investment is performing to its maximum potential by maximizing the income achievable under the lease.

The consequences of neglecting this crucial aspect can be profound. A missed rent increase, or an inaccurate one, compounds over the term of the lease, diminishing the property’s income potential and, consequently, its capital value. It’s paramount to have a management team that ensures rent increases are consistently and correctly applied, nurturing your investment to its full potential.

Lease Renewals – Securing Your Income:

Another invaluable service provided by a reputable commercial property management team is keeping you informed about upcoming lease renewals. They will alert you well in advance as your property’s lease approaches its expiry date. Additionally, they will assess whether the tenant has an ‘Option’ to extend the lease and advise you on the rent review process, including advice on what the current market rent for the property should be. This proactive approach is instrumental in securing the income from your property and aligning with your objectives and goals for the property.

A good management team will not allow your tenant to simply sit on a periodic or month-to-month lease. Such arrangements offer no security for the income you receive, as the tenant could terminate the lease at any time with only one month’s notice. Effective communication between you and your property management team ensures that your objectives for the property are clearly understood, allowing them to take appropriate actions to facilitate those objectives. This approach not only benefits you but also provides clarity to your tenant about the direction for their business and operations.

Routine Inspections:

Routine inspections conducted by a professional commercial property management team are a critical component of maintaining the condition and value of your property. They regularly visit your property, meticulously record its condition, and provide you with detailed reports. This practice allows you to stay informed about how your property is being maintained and promptly address any damage or maintenance issues.

For long-term tenants, in particular, these inspections are vital. Over an extended lease term, the condition of the property may deteriorate significantly if damage and maintenance issues go unidentified and/or unactioned. Regular inspections are the key to avoiding this scenario, preserving your property’s condition, and safeguarding the long-term value of your asset.

Understanding Compliance:

Compliance requirements for commercial properties seem to become more intricate with each passing year. Failing to stay informed about your obligations can pose a significant risk to your investment’s performance and even result in personal liability. A dependable commercial property management team plays a pivotal role in helping you comprehend and adhere to these obligations and manage these ongoing challenges.

Compliance issues can span a broad spectrum across different sectors of the commercial real estate market. Some common areas of concern include Fire Safety, Asbestos, Lift Maintenance, HVAC (Heating, Ventilation, and Air Conditioning), and general Workplace Health & Safety (WHS) matters. A quality management team not only possesses a profound understanding of these areas but also maintains a network of reliable contractors and tradespeople who can promptly address any issues that may arise. This proactive approach ensures that your property remains in compliance and minimises potential risks.


In conclusion, you can see from the brief exploration of the topics above that having a good commercial property management team is more than just a convenience; it is a vital partnership to ensure you get the best performance from your investment. Additionally, it helps to protect you from the numerous risks and liabilities that come with owning commercial investment property.

While employing a commercial property management team incurs costs, the value they provide far outweighs the expenditure. The consequences of attempting to manage all these aspects yourself or having an ineffectual agent can be significantly costlier in the long run. It’s important to note that the cost of hiring a commercial property management team is tax-deductible as an expense for running your investment and often recoverable as an outgoing under your lease.

At Chapman & Frazer, we are dedicated to developing our systems and team continually to provide maximum value to our clients. If you are interested in discussing our commercial property management services and exploring how we can assist with your specific investment, please get in touch with us today.