Why Third Party Management Makes Sound Business Sense

With the seeds of economic recovery still slow to take root, landlords and property owners are heading into another winter with cost reduction still very much front of mind.

In these straitened times, property management contracts understandably come under scrutiny. Businesses of all types seek to protect themselves against future uncertainty by reducing operational costs, putting all third-party services under the microscope – do we really need this? Is this something we could do ourselves? Are we getting best value?

The short term incentive to streamline spending can, however, cloud judgement regarding the value third party services offer in the long term. Property and facilities management is not as straightforward as people assume, entailing much more than answering reports of issues from tenants and carrying out routine maintenance.

Specialist property management companies are not just glorified caretakers – they exist because they have the expertise and skill sets to help their clients increase operating income. Here’s how.

Administration and Bookkeeping

It is easy to forget that your property manager is not just the person with the tools sent to fix the faulty heating system. In fact, most of the work involved in property management services goes on behind the scenes, and is administrative in nature.

Property managers are, after all, the people who take care of leases, tenancy agreements, supplier contracts, project management and building work. They have to stay on top of the latest laws and regulations governing landlord-tenant relationships, financial arrangements and building and premises codes. Their expertise saves clients hundreds of hours – and therefore thousands of pounds – in having to manage this administrative burden themselves.

Supplier Management

You cannot manage commercial premises without external suppliers, whether it be to source cleaning products or services, building materials, fixtures and fittings, electrical hardware, landscape gardening contractors and so on. Good property management firms will have strong networks of suppliers they have built relationships with over many projects. This will allow them to source goods and services at preferential rates, again saving their clients money.

Reputation

As with all things in a competitive market, reputation is a key part of running commercial premises successfully. Word quickly gets around about office spaces, industrial units or retail outlets which are run efficiently and professionally, where utilities and facilities are well maintained, where reports of snags are dealt with quickly, and perhaps most importantly, where contracts are administered fairly and openly. The same applies if those things are not the case.

Building a good reputation as a landlord can play a significant role in keeping vacancies to a minimum, and therefore maximising your income. Well looked after tenants are less likely to leave, while good reviews will help to fill vacancies quickly. The expertise and dedicated service of a third party property management specialist can help you add reputational value to your business.

About Us

Red Rock Facilities specialise in providing first class management and maintenance services for commercial portfolios of all types and sizes. To learn more about our dedicated 24/7 services, call 0844 800 9358.

Third Party Management


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