A commercial Property Manager is employed by the owner of the property to oversee the operation of their commercial property, this may include
- Negotiating leases, lease renewals and rental reviews.
- Finding & signing new tenants.
- Arranging insurance for the building.
- Organising maintenance on the building.
- Paying the accounts for the building.
A commercial property is a premises where a business or multiple businesses operate from. It can be retail shops, an industrial site, a shopping mall, a car parking building, an office building, a health centre or a motel. Most commercial property tenants have a long term lease instead of operating under the short term provisions of the Residential Tenancies Act.
The Deed of Lease or "Lease" is a document which controls the relationship between the property owner and property tenant. The lease will include terms about the amount of rent payable, the length of the lease, the proportion of operating costs to be paid by the tenant, when the rent review is due and what happens at the end of the lease period.
Opex is the short term for operating expenses. This includes expenses for the whole building that are usually proportionately split between the tenants. These expenses include local body rates, insurance, lift maintenance, foyer and toilet cleaning, carpark and ground maintenance and fire sprinkler, extinguisher and alarm system monitoring.
The Building Warrant of Fitness (BWoF) is a legal requirement under the Building Act and monitored by local government that ensures that the facilities within the building are maintained to a certain standard. Very simple buildings may not need a BWoF but if the commercial property has a lift or automatic doors or a sprinkler system or an escalator then regular checks will be required and the BWoF needs to be displayed in a public part of the building.
The effects of the earthquakes in Christchurch are far reaching and on-going. It has been a difficult time for Cantabrians and recovery for the city will take a very long time. For the Christchurch properties we manage the damage has been variable. Some have been barely affected, others require repairs and another property has had to be demolished. Once the ongoing safety of our tenants had been determined a lot of time is involved working with the insurance companies and contractors to arrange repairs and the building demolition. A number of our tenants businesses could no longer operate and others are struggling with the changes in their area. The bank however still requires the mortgage to be paid and fortunately loss of rents insurance has meant an income for the owners while repairs are underway. Replacing an entire building is not a fast process and the property manager has become the project manager working with the council and architects and property owners to build a replacement for their demolished premises.
The far reaching effect of the earthquakes is the concerns from tenants all over the country regarding the structural integrity of the buildings they work in, meaning that we have arranged for engineering reports to be completed for a number of our properties and may have to consider strengthening some buildings. This will also have an effect on commercial properties being purchased or sold.
The other instant effect of the earthquakes is that as insurance policies come up for renewal, increases of 30 to 40% on the premium are standard and this will be felt by residential policy holders as well.