Commercial Property Management FAQs
What is Commercial property?
A commercial property is a complex from which one or more businesses operate. Examples include retail shops, shopping malls, car park buildings, office buildings, motels, industrial sites, and much more.
What does a Commercial Property Manager do?
A Commercial Property Manager is employed by the owner(s) of the property to supervise the operation of the premises. This will include handling all the day to day issues that may arise with tenants, as well as a number of specific services such as:
- Lease Management. This includes negotiating terms of the lease and discussing lease requirements with tenants before they expire, our goal being 100% occupancy.
- Building WOF. Ensuring that the Building Warrant of Fitness is renewed and kept up-to-date.
- Maintenance. Ensuring that maintenance contracts are expertly negotiated for the premises.
- Accounting. Not only paying accounts on behalf of the building, but providing;
(a) Monthly financial reports of monies received and expenses
(b) Year-end summaries of all the property’s income and expenditure
Although this list is not extensive, these are some of the services that you can expect from apm.
What is a Deed of Lease?
The Deed of Lease is a document that determines & governs the relationship between the owner of the property and the tenant of the property. The Lease will detail terms and conditions for the tenant to abide by, such as the rent payable, the length of the lease, and the proportion of OPEX that is to be paid by the tenant. The Deed of Lease will also determine when rent reviews must take place and what happens at the end of the lease period.
What does OPEX mean?
OPEX is an abbreviation for Operating Expenses. Operating Expenses include all of the expenses for the commercial building that are usually split proportionately between the tenants according to their lease terms. These expenses may include council rates, insurance, lift maintenance, common area cleaning, grounds maintenance as well as fire system and alarm system monitoring.
What is a Building Warrant of Fitness?
The Building Warrant of Fitness (BWOF) is legally required under the Building Act and is monitored by the local government. The BWOF has been implemented to ensure that the essential mechanical facilities within a building are maintained to a specific standard. Not all commercial property requires a BWOF. Commercial properties often need a BWOF if there are facilities such as a lift, an escalator, automatic doors, or a sprinkler system. If your property requires a BWOF, then you must display this in a public area of the premises.