Preparation of property management proposal is an essential part of commercial real estate business when you come to encounter with sale or lease. You might be in need of new management. The structure of the proposal needs to be satisfying the lease performance, expenditure control and income through workable strategies. It is to entertain the property owner and property itself. It includes the ideas that favor the property owner. It is important that how the proposal is finalized to avoid any unwanted situations in later. Gordon Rutty is of the view that a keen consideration shall be levied on its preparation that is why this note has been dedicated to share few important points.
Start your document face painted with an executive summary, because it gives a clarified view of the strategies and results jot down in it. The physical features of the property shall be highlighted including the location having the effects on the tenant. It sums up the management and importance concerns of the property. There shall be a whole section dedicated to narrate the tenant and lease mix regarding the management of the processes in detail. The tenancy schedule shall be explanatory showing up all the lease installments vividly and in an understandable manner.
The possible matters involved in occupancy shall also be touched in detail to give a clear insight regarding processes, rent review, arrears, options and expiries. This section shall be listed after management handover. The regular maintenance and functions also need well-planned and detailed process. Of course, all the parties related to property own different roles, responsibilities and rights to exercise. It all varies prom party to part. All they share is a unique relationship with different managerial roles. The maintenance is also a special concern that needs to be clarified.
You can elaborate different aspects of it in detail. The considerations regarding plant & machinery, controls, risks and proposal management shall be taken into account. Even the contractors involved to these concerns may be given a part to help in recommendations. The reporting system of the manager to the property owner is a part of his service that shall be well defined. The financial reporting shall also be demonstrated by providing examples in the last of the document.
It shall be including arrears, expenditure analysis, tenancy schedule, income analysis and so on. If the number of tenancies is more, then tenant mix strategy shall help it to explain the controls. The staff affiliated to the property shall also be clarified in the report; it may become a long list for the bigger project. The fees shall be prefixed explaining the management, office costs and onsite management staff. Do not ignore including the recommendations and solutions in the proposal.
However, nothing is necessary; you can make the report as per the requirements of the parties especially keeping the owner’s demand in consideration. You can make additions to make the full disclosure possible. This way it will be a helpful piece of document to guide and resolve any ambiguity or issue rising in future course o action.