Managing commercial property has become more complex in recent years, making it a time-consuming balancing act for investors who choose to manage their own assets. While it can be tempting to self-manage your assets, there are compelling advantages to hiring a commercial property management team who know the sector and can manage the tricky situations that often arise.
With legislation, compliance, asset protection and tenant management all becoming increasingly complicated, engaging a professional property manager is fast becoming the norm.
Commercial property managers have expert knowledge across asset classes and can play a crucial role in building and adding value to a commercial portfolio.
THE PITFALLS OF SELF-MANAGEMENT
Many property owners will be familiar with this scenario…you have a tenant who is a good friend and everything was fine, until something fell through, or the rent stopped being paid. Such situations can be emotionally challenging for owners and stressful for all parties.
One of the key benefits of working with a property manager is they remove the personal element from the equation. No difficult conversations with tenants, no having to negotiate payment arrangements or lease renewals.
RWC Noosa & Sunshine Coast Asset Manager Jon Forrest emphasises the importance of having a property management team in place to manage challenging situations.
“Having a property manager takes the landlord’s emotions out of the equation. Your property management team is experienced in making difficult decisions and will approach issues from a business perspective. Once you remove the emotional elements, it becomes a business decision,” he said.
Jon shared an example of an owner who has three industrial units on the same site. The owners occupy one of the units and rent out the other two. One of the tenants is behind in rent, creating a difficult situation for the owners.
“Some owners are okay having those discussions, but a lot aren’t. In this case, the owner had months of arrears by a neighbouring tenant and no agreement in place. We took on the management, put an agreement in place and the owner didn’t have to get involved directly,” he explains.
MANAGING COMMERCIAL PROPERTY IN AN UNCERTAIN ECONOMY
During the pandemic, an increasing number of landlords who previously self-managed or relied on residential property management agencies turned to professional commercial management, a trend that continues.
Leteicha Wilson, Commercial Property Management Performance Specialist at RWC Corporate says COVID-19 was a turning point, revealing the risks associated with not having specialised management.
“The changing legislation during that period made it a massive task to stay on top of legal requirements, further emphasising the need for professional commercial property management. It’s in the client’s best interest to have their properties managed by specialists in commercial, retail, or industrial assets,” says Leteicha.
Jon concurs, saying that the recent economic uncertainty has seen more owners seek the benefits of professional management to help them deal with the impacts of a challenging economy.
“We’ve seen a few self-managing owners come to us because they no longer wish to deal with the increasingly demanding process,” Jon said. “The current economic cycle is tough—there are increases in costs, tenants going into liquidation and situations where tenants are leaving or selling their businesses together with an assignment of the lease.”
Jon shares how the challenging economic environment has led to increased activity in tenants breaching leases, with some even facing lockouts. The process of dealing with such situations requires a deep understanding of compliance and relevant legislation, particularly under the Retail Shop Leases Act.
“For an owner, it’s pretty confronting, especially if it’s not something they deal with day-to-day. We’re dealing with people’s livelihoods, on both the landlord’s and tenant’s side. We ultimately seek a good outcome for the benefit of landlords but also work with tenants if they need to exit or assign a lease to support them in achieving that goal,” he said.
NAVIGATING LEGISLATION AND EVOLVING COMPLIANCE STANDARDS
Unlike residential property management, where the focus is often on tenancy agreements and basic property upkeep, commercial property management must adhere to a wide array of legislation. This includes commercial and retail law, workplace health and safety (WHS), fire safety regulations, asbestos management, emergency management protocols and specific compliance requirements for specialised assets.
“Commercial property management is far more complex than residential,” says Leteicha. “Residential agencies aren’t equipped with the knowledge, technology, or market understanding required to manage commercial assets. Each asset class—whether industrial, retail, offices, or alternative assets like hotels, service stations, and childcare centres—has its own unique complexities.”
In recent years, compliance has also evolved, particularly in response to heightened awareness around safety standards and environmental considerations. The management of asbestos has become a critical compliance issue, requiring regular audits and management plans to ensure the safety of tenants and workers. Fire safety regulations have become more stringent, with mandatory service of fire equipment, emergency evacuation plans, and regular fire drills becoming essential components of compliance.
“Commercial property managers are equipped with the tools, expertise and advanced technology to ensure compliance with various legal frameworks, protecting property owners from costly legal disputes and fines,” explains Jon. “We have effective systems to track compliance deadlines, conduct audits and manage the documentation required for legal compliance, reducing the risk of non-compliance and giving owners peace of mind.”
MAXIMISING THE VALUE OF YOUR INVESTMENT
Maximising the value of a commercial property investment requires careful revenue and expense management, proactive maintenance, and strategic investments. Effective commercial property managers handle detailed accounting, including GST management and tenant expense recovery, ensuring the owner’s net income is optimised and financial health is sustained.
RWC Noosa & Sunshine Coast Property Manager Stephanie Johnson recently joined the Caloundra team, bringing 30 years of real estate experience and deep knowledge of the local commercial market. Stephanie notes that many owners are unaware of the extensive detail undertaken by commercial property management teams.
“It’s much more than just collecting rent and commission. We develop scheduled maintenance plans to extend asset lifespan, ensure tenants maintain property condition, and handle quotes or work orders for our owners. We also monitor the market, update owners on changes or new opportunities, and leverage our knowledge and connections during market reviews to secure the best possible rent for them,” Stephanie said.
“At the end of the day, the owner only needs to focus on their income, and we take care of the rest. We manage BAS statements, work with solicitors and accountants and ensure landlords recover all expenses they’re entitled to from their tenants.”
SEAMLESS COLLABORATION FOR COMPETITIVE ADVANTAGE
The combined strength of RWC Noosa & Sunshine Coast Property Management and Sales & Leasing teams provides a significant competitive advantage for clients, ensuring every aspect of a commercial property is optimised – strategic tenant placement, market rent reviews or capital improvements.
Jon highlights the value of this alignment: “Our property management team works closely with sales and leasing to ensure landlords are getting the correct market rates and that tenant mix is strategically aligned to enhance foot traffic and overall property value.”
“This collaborative model fosters proactive decision-making, enabling both teams to identify and act on opportunities for the benefit of our clients,” Jon said.
Stephanie Johnson
CHOOSING RWC NOOSA & SUNSHINE COAST AS YOUR COMMERCIAL PROPERTY MANAGER
At RWC Noosa & Sunshine Coast, we combine the strength of a large organisation with personalised service, ensuring continuity and high standards across all aspects of property management. Our team is well-resourced, with specialised professionals handling everything from accounts to administration and marketing.
Despite our larger organisational capabilities, we ensure continuity and personal contact by assigning clients to small, dedicated teams. This means you’ll always have a familiar point of contact, even if a team member is on leave.
With the recent addition of Stephanie Johnson to our team, we’ve further strengthened our local expertise. Already well-versed in the Sunshine Coast market, Stephanie brings invaluable experience in commercial real estate, enhancing our service and client outcomes.
We handle your assets like they are our own and aim to provide a service that gives you absolute peace of mind. Find out why we’re consistently among the top teams in the network.
Call our team to talk about your property management needs on +617 5474 7600.
Offices in NOOSA | CALOUNDRA | MAROOCHYDORE
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